HOA General Contractor

HOA Dallas General Contractor

If you are a representative on a Home Owners Association (HOA) board that is in the process of choosing a general contractor to do a renovation job on the Association’s property here are a few tips.

Choosing the right contractor will save your association many headaches including less than satisfactory work, cost overruns and litigation. It is advisable to choose a contractor that has a history of working with HOA’s. Ask other HOA’s in your area for suggestions. Not every contractor has the patience and professionalism to work with HOA’s.

Before you request bids from general contractors you need a detailed scope of work. If this is a sizable project it will be worth your while to hire an architect or engineer to help draft your scope of work for the bid request. A well written scope of work will save misunderstandings and confusion in the bidding process and while the job is being completed.

Request bids from more than one experienced contractor. With each bid ask for references not only from former HOA customers but also from subcontractors and suppliers who can speak to the contractor’s history of making timely payments. Visit the customer references and check out the quality of work as well as asking about the customer’s experiences with the contractor.

Some of the questions you may want to ask former HOA customers are:

• Were you satisfied with the quality of the work?
• Was the work finished on time?
• Was the work site managed professionally, cleaned up each night with tools put away and open areas secured?
• Were change orders done in writing and with appropriate charges?
• Was there any follow up repairs required and if so were they done quickly?
• Would you hire this contractor again?

Many states license contractors and provide oversight ensuring the contractor meets state surety or bonding requirements. You can often access this information on the state’s website. The agency may also collect and publish complaints customers have made against licensed contractors.

Once you have narrowed the choices to one or two contractors interview the contractors. A good working relationship is important so you want to choose a contractor with whom you are able to communicate comfortably.

Do not try to write a contract for a large renovation job without the assistance of an experienced construction attorney and do not use the general contractor’s contract without have an experienced attorney review it.

Some of the clauses you will want to ensure are included in the contract for the HOA’s protection are:

• A detailed description of the scope of work and the amount of compensation to be paid for the work.
• A requirement for the contractor to provide evidence that he or she has contractor’s insurance, liability insurance, workman’s compensation coverage and maybe a payment bond to ensure all subcontractors and suppliers are paid.
• Clarify who is responsible for obtaining licenses and permits
• Identification of labor and material warranties to be provided by the contractor.
• The contract should establish a date for completion of the work and a penalty for not completing the work on schedule.
• A stipulation that all progress payments and the final payment will be made only upon receipt of lien waivers.
• Specify the process for change orders

Problems with the quality of work or work delays

While following the above suggestions will help ensure the final work product is done to your satisfaction there is always the possibility of problems arising either with the quality of the work or with the timeliness of the work. While most contractors are honest and will try to do a good job there is always the possibility of something going wrong in a large construction project.

Involve your attorney as soon as you suspect there are going to be issues you and your contractor cannot resolve amicably.  Involving your attorney at the first sign of trouble may avoid the need for litigation later.

Another option is to use a professional mediator. You can specify in the contract a mutually agreeable mediation professional that the HOA and the contractor agree will be used to mediate disputes between the two.

Mediation is an attractive option for resolving disputes.   Mediation allows the parties to maintain control over the resolution while litigation or arbitration puts control of the outcome in the hands of a judge or arbitrator. With mediation you maintain control in a risk-free environment. If you cannot reach a mediated agreement you will not prejudice your subsequent litigation. All mediation proceedings are confidential and not admissible in court unless you choose to make them part of a legally binding settlement.

Mediation does not eliminate the need to have an attorney advising the HOA. Your attorney can advise you as to the strength of your case and help you understand what a realistic mediation settlement is.

The best part of using a mediator is the mediation process is efficient. Mediation will successfully resolve 80% of the submitted cases in one day rather than weeks or months of litigation and is a lot less expensive than litigation.

If you believe you have a cause of action and have been unable to resolve it with your contractor contact your attorney. If your HOA attorney is not an experienced litigation attorney ask him to refer you to an experienced litigation attorney. There is no substitute for experience if you are going to be forced to go to court to resolve your case.

You may have a case for negligent or defective construction, failure to use the specified quality of materials, delays in finishing the work beyond those times specified in the contract or even a consumer fraud case if you can prove the contractor used deceptive practices to induce the HOA to contract with them. You attorney will be able to advise you what the best causes of action are to allow you to recover your HOA’s losses and/ or have the work brought up to the required standards.