How condo associations can get construction projects done the right way
Aristotle said, “Well begun is half done,” and Julie Andrews made the proverb famous when she said it in her 1964 Oscar-winning role as the magical Mary Poppins.
These ageless words of wisdom are especially true for construction projects, particularly those undertaken to restore and repair high-rise condominiums.
For condominium associations, failure to get off to a good start is most often caused by one of two contradictory syndromes.
The first is inertia. Some associations simply don’t know how to begin a major restoration project. They’re unsure about what needs to be done, how much it will cost, and how long it will take. While they debate and procrastinate, their buildings’ conditions can get worse, and the scope of needed repairs expands and becomes more expensive.
The second syndrome is being in a hurry, which can be just as bad.
Too many condo associations rush into expensive renovation projects, hiring design professionals and even general contractors without previously consulting with their attorneys and without getting guidance from a construction project management owners’ representative.
As a result, associations can find themselves locked into contracts with terms and conditions that are not in their interest and with design specifications that are not complete. Both problems are likely to lead to costly setbacks down the road.
But it’s possible to beat both these syndromes.
Any condo association contemplating a major restoration project should engage two types of professionals to drive their projects forward, while at the same time safeguarding their community’s interests.
One is a qualified attorney who is experienced in crafting construction contracts between condo associations and engineers, architects and general contractors. An experienced condominium attorney will know how to write construction contracts that are in the association’s favor and that will keep the community out of trouble throughout the construction process.
Another necessary professional is a qualified owners’ representative, who specializes in leading improvement and restoration projects on behalf of a condominium’s board members and unit owners.
When an owners’ representative firm is engaged early, they can get the project off to the right start by helping define the project’s full scope, design and budget. This is critical. Incomplete scope leads to expensive change orders and frequently to claims and disputes which result in cost overruns and delays. Experienced owners’ representatives agree that the time to achieve savings and reduce changes is in the early stages of the project, not at the start of construction, or even worse, during construction itself.
An owners’ representative, like an attorney, will bring the sort of experience and critical thinking that can protect the association’s interests while also getting the restoration project started, keeping it on track, and maintaining the budget.
If this sounds expensive, it’s not.
A condominium community can often save multiples of the professional services fees they pay to their owners’ representative. The savings come from four distinct areas: success in negotiating with vendors; ability to identify alternate means and methods in the construction process; tight control of change orders; and strict verification of payment applications.
Together, these types of savings can amount to hundreds of thousands of dollars or more on a condominium restoration project.
Aristotle and Mary Poppins were right. A condominium improvement or restoration project well begun is half done.
Adam Snitzer is chief financial officer of DSS Condo, LLC, South Florida’s only construction project management/owners’ representative firm specializing exclusively in serving condominium and homeowners communities. He can be reached via email at adam@dsscondo.com. For more information about DSS Condo, visit www.dsscondo.com