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Identifying and Managing Condominium Repair Projects


Jehan Bharucha About Condominiums


Condominiums are becoming increasingly popular primarily due to spiraling apartment rents, their affordability relative to single family homes, proximity to work, seniors downsizing and homeowners’ desire for community and security. Not surprisingly, many folks buy condominiums because of the perception that they won’t have to deal with maintenance and repairs. This article will help explain the truth behind the often complicated and costly repair process.


Condominiums, like all homes, need preventive maintenance


and repairs due to their age, construction defects, or both. When significant preventive maintenance or construction issues arise, every homeowner is compelled to “deal with” repairs in one way or another. Depending on the complexity and potential cost of the repairs, some homeowners choose to get personally involved in the decision making and control process. However, most hope that their elected board members (homeowners with personal and work lives of their own) have the skills, time, and dedication to realize the best outcomes for the common good and with the least use of funds. While only a select few volunteer to serve on boards, the folks who elect them expect a high level of responsiveness, expertise and care from their board members. Occasionally, boards cannot make timely decisions when they don’t have a quorum at critical meetings, or the association does not have adequate funds. This results in conditions getting more expensive to fix later when in an emergency or reactive mode.


Objectives of this Article


This article focuses on impacts of major building problems which need to be resolved in condominiums. Who is responsible for capital repairs; who pays for what and how is the repair to be managed in a way that the repairs are done right and in an affordable manner?


The Condo Repair Process


Major building repairs can be overwhelming, expensive, and time consuming. The task of planning and executing projects requires considerable time and expertise. Best results are realized when the repairs, whether they be selective or extensive, are done right the first time to avoid recurrent problems and long-term damage.


Homeowners’ Instinctive Approach and Associated Challenges


Without in-depth knowledge of the causes and the true extent of damage, it is not uncommon for homeowners’ associations to have spot repairs carried out by contractors who may not be qualified to recognize a more serious issue. Washington State does not require general contractors and some construction trades to pass any exams or provide any proof of expertise to get


26 Community Associations Journal | March 2017


licensed. Therefore, homeowners are at a higher risk of realizing unpredictable outcomes. Also, such repairs are usually done with a huge focus on bottom lines. Very often bids are invited without a written scope. Also unknown is whether and how hidden damage is to be addressed and if the repairs would fix and prevent future problems. Oftentimes this approach is adopted and repeated at a considerable overall cost until frustration finally sets in when the association realizes that its precious reserves have been severely depleted, and the problem has not been corrected.


Association boards, while having to manage homeowners’ expectations regarding assessments and the cost of capital repairs, also have to contend with the added burden of obtaining funding when all homeowners cannot pay their share. A depressed real estate market, which leaves homeowners with little or no equity, can also exacerbate this problem.


The Recommended Approach


To determine whether spot repairs are feasible, one needs a deeper understanding of the causes of obvious problems. Properly planned and funded repairs, resulting from having the full picture of technical and financial issues and concerns, gain from economies of scale which are significantly lost in spot repairs. Note that spot repairs are distinct from well planned, selective or phased repairs which are done either to better manage cash flow or to address essential repairs in a prioritized manner.


Experience has shown that associations that have good leaders and members who are actively engaged in decision making and timely approvals, realize the best results. To develop a functioning team, the board must determine whether its members are able to spend the time to interact with service providers. Alternately, community members may be appointed to volunteer to act as special project liaisons.


Once the key players are in place, the work of understanding the scope, assembling the construction team and developing budgets begins. The association must check if it has resources and knowledge to self-manage or if it needs an independent owner’s representative and project manager to take the project from investigation through completion. If an association has already engaged design consultants or contractors,


it should identify someone who can interpret


construction issues, interact with all team members, develop and control budgets and provide overall direction. Otherwise, the overall process can get disjointed and unduly expensive. To decide how best to fill that need, the association must be mindful of the pieces of the construction puzzle which must be put together.


The following, broad outline shows the project planning and control process, ensuring predictability and successful outcomes. It also helps mitigate homeowners’ doubts and fears regarding


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