A Manager’s Perspective Erik M. Rivera, CCIDM, CMCA, AMS, PCAM


Often, common interest community board of directors and homeowners are asked to make important decisions on various components involving maintenance and construction within their community. From small routine maintenance, to large capital projects; having the appropriate background and information to do so, benefits all parties involved. When hiring a contractor, it is common to make price—instead of professionalism—a top priority. As a result, many go with a low bid from a less-qualified contractor who may not even be licensed or insured.


Trust but Verify Let potential contractors know that you are obtaining multiple quotes, and confirm that each contractor meets the state’s requirements for contracting. If your community is professionally managed, your contracted management firm will typically handle this process. Additional verification is easily accomplished by using the internet to access government websites. From contractor licensing to workers compensation insurance, homeowners and boards can learn not only what is required of contractors but why it is important.


Additionally, these government websites contain databases that allow the public to verify a contractor’s compliance. Every homeowner and board should know that government databases are the most accurate means to verify a contractor’s professional license and workers compensation insurance. If a contractor has been disciplined by a regulating authority, this information may also be viewable on the corresponding government websites.


Explanation & Demystification Homeowners and common interest community boards should be aware of other criteria used to determine professionalism in the construction industry. Professional firms won’t try to hide pertinent information. Rather, they demystify the contracting process by explaining legalities to potential customers.


Contractors who educate their clients establish themselves as experts and keep homeowners out of trouble. The following points should always be considered when contracting:


• States that require contractor licensing do not allow a licensed construction company to pull a permit for an unlicensed entity that has contracted directly with the homeowner. In short, an unlicensed tradesperson cannot do business under another person’s license.


• Contracting with an individual in contrast to a business entity may require the homeowner to withhold payroll taxes and fulfill other obligations as an “employer.”


• Consistency is key. All contracting documents such as the license, certificate of insurance, contracts, and checks should contain the name of the business entity.


• Ensure that the contractor pulls a permit for the work as required by the building department. If a contractor asks the homeowner to pull the permit, it may signify that he or she does not meet the state’s requirements for contracting. Additionally, when the owner pulls the permit, he or she may assume additional responsibility and liability.


• A homeowner may have no legal recourse if he or she does not follow the law.


Wear your Thinking Cap Today, obtaining information is not as difficult as it was in the past — especially when an expert guides the way. There are many ways to educate yourself so you go into the project with a better understanding – benefiting both yourself and the contractor. Below are some great resources that may be useful when your next project comes around.


Organizations • Community Association Institute (CAI): www.caionlone.org


• Associated General Contractors of America (AGC): www.agc.org • National Association of the Remodeling Industry (NARI): www.nari.org/consumers • National Association of Home Builders (NAHB): www.nahb.org


Other Resources • Your local contractors school


• Your local city college or university • Your community association management firm


Websites • www.understandconstruction.com


• www.constructionknowledge.net


Never Be Afraid to Ask Questions What you learn today will encourage the successful completion of your project tomorrow. Never hesitate contacting your contractor and asking your question – no matter how insignificant you may feel it is. A contractor who is knowledgeable and takes his trade seriously, will always be happy to explain the process and answer your question completely.


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