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The Special Needs of Homeowner's Associations

Tackling a major restoration or renovation project in an Association is an expensive, stressful and thankless undertaking. Board members are responsible for protecting the interests of the homeowners they represent, yet do not typically have the construction expertise or the time it takes to ensure the project gets done right. Many HOA Boards rely on their property management teams to represent them during a project. The issue, the property management team is in the same boat as the Board, they have no dedicated personnel to monitor special projects so it falls on the community manager and the maintenance crew to oversee the work. This may work for smaller scale projects, but major projects may need an additional layer of oversight. That is where we come in. We understand the unique financial, political and operational challenges faced by Association Boards and unit owners, and we know what’s at stake. We know because we are you. Our Principal Owner, Christa Cruikshank has served on her HOA board for more than of five years, three years as president and is well aware of the tightrope walked between fiduciary responsibility to the home owners and the necessity to perform routine reserve study projects as well as nonroutine projects that may result in a special assessment to the homeowner.

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While investing in an owner's rep is the first step to ensuring your project’s successful outcome, it can be a tough pill for unit owners to swallow when faced with the expenses of a major project.

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However, that cost of an Owner's Rep can be a fraction of having to pay for cost overruns due to poor planning or execution. 

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Wait a minute, we hired contractors and engineers and we are paying them to do the work. They should have our best interests in mind. Most engineering firms and contractors are ethical and above board and in a more perfect world, that would be correct: your interests would come first. The reality is, they bid on the project and even though there is a signed  commitment or contract (usually their our terms and conditions signed by the Board President), they are there to make a profit. These projects are usually bid as a fixed price contract, meaning the less money they spend on the project (staffing, equipment, overhead), the more they can put in their pocket. It also means any hiccup or obstacle will result in a change order, potentially wrecking the budget and/or schedule. It is true that even the most reputable contractor cannot control every aspect of a project, but they build in contingencies, which tends to make their bids a bit higher. In today's environment, especially in Middle Tennessee, good contractors are in high demand and usually booked far out in advance. The danger is, because the demand is so high, less reputable contractors can still thrive, completing jobs before their reputation catches up with them often changing company names and addresses. 

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The other issue is that most of these engineering firms and contractors have other clients they are working for, and while they may dedicate a project manager and/or a construction manager, they may not be authorized to make decisions above a certain level, meaning they have to bring the decision back to the owner. If the Board or property management team is running the project for the HOA, there is a lag between the issue being communicated, the options being laid out, and the decision being made because it is literally done by committee. Although the owner's rep also has limits for making decisions, we can come to the Board with solutions and recommendations based on experience and consultation with the project team, often garnering a unique solution, ultimately minimizing impacts to budget and schedule.

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The bottom line is: Designs and specifications can be over- or under-engineered, cost estimates can be wildly wrong, vendors can be unreliable, permits can fall into a bureaucratic black hole, the list goes on and on. It’s no wonder that most construction projects are either late, over budget, or both.  And many end in litigation.

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To beat the odds and successfully deliver your project on time and in budget, you need guidance from a dedicated expert who understands every aspect of the construction process and who is there to represent the Association’s interests every step of the way.

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