Notes from Dina Petrakis’ seminar
Discussion of trust, references- CHECK THEM CAREFULLY, going with your gut-AFTER DOING YOUR HOMEWORK. Contract or proposal with exact description of material and work to be performed, and COST. EVEN IF YOU KNOW THE CONTRACTOR PERSONALLY… Importance seeing similar work by the GC.
Protecting Title- your ownership of the property: YOU NEED TO MAKE SURE YOUR CONTRACTOR IS PAYING HIS SUBCONTRACTORS AND SUPPLIERS. Purpose of mechanics lien law and use of the waiver. Using a title company in a construction project. Step by step walk through of partial and final waivers, the tools to protect title. Discussion of material waivers and their importance.
Insurance requirements and certificates MAKE SURE THE CONTRACTOR’S POLICY COVERS SUBCONTRACTORS, IF ANY, AND THAT HE HAS WORKMAN’S COMPENSATION. Various types of insurance and suggested coverage. Why workman’s compensation is important. How to use insurance certificates.
Contract clauses Importance of specificity of contracts, with work to be performed, materials to be used, and cost, all clearly laid out. -Smaller jobs possibly just sign a proposal…add indicated items umeration of contract docs/players/contract sum/payment schedule etc
- enumeration of contract docs/players/contract sum/payment schedule etc
- commencement/completion; penalties/bonuses; SUBSTANTIAL COMPLETION
- AVOIDING EXTRA COSTS: all work/materials required to complete the work; visible or reasonably anticipated
- clean up/ debris removal
- change orders/ percent markup if possible
- permits- who pays; code compliance
- correction of the work/warranty
- REMEDIES- contract termination, owners right to complete the work
Retainage/Punchlists- function of these and how to use one to benefit the other.
Hold back 150% of amount needed to complete the work. The most important thing to remember is not to pay the contractor completely, until the work is completely done. The last 5 or 10% of the job will never be done if they are paid in full. That’s not cynicism, it’s reality.
“Substantial Completion vs. Final Completion”