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What is it? How does it work? Who does it benefit?

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Presentation on theme: "What is it? How does it work? Who does it benefit?"— Presentation transcript:

1 What is it? How does it work? Who does it benefit?

2 Let me introduce myself My Name is Brad Rodman I have been a building contractor for 13 years. I am a LEED AP, and a CGP I am a member of the National Builders Association, United States Green Building Council, Elkhart and Goshen Chamber of Commerce. I have worked on a variety of different projects ranging from the building of residential homes, to restaurants and banquet halls, to laboratories and corporate offices. I have even worked on schools, universities and nursing homes.

3 Through these different experiences I have seen the problems that can arise. Lack of communication between contractor and owner No accountability from subcontractors Unreasonable requests from owners and architects Poor design and building placement Mediocre craftsmanship Weather delays Misuse of funds Inadequate documentation Unsafe work practices Uninsured contractors Most of the time the outcome is mediation by a third party and then eventually a very costly and painfully long lawsuit. During this time the property is usually placed under a mechanics lien that will stick until the issue is resolved or the lien is foreclosed on. This will usually involve the lender, owner, and contractor. And sometimes a municipality will become involved.

4 Can you see a problem?

5 5 gal. bucket roof patch

6 I Broke my level

7 This guy must drive a Hummer

8 Confused Plumber


10 After witnessing and being a part of these struggles over the years I have wondered how to avoid these bad situations. Broken WWeather Schedules Over that time I have developed a process and then refined it to address these issues and avoid unpleasant outcomes. This process is a three phase process that addresses the potential issues head on. The process is designed to be performed as a third party verification process that leaves the builder and owner relationship safe from damaging issues.

11 The Process Phase one (contract & feasibility) Phase two (structure & rough in ) Phase three (finish & closing)

12 Phase one Site selection Is the location viable for the proposed project? We look at traffic count, demographics, neighborhood quality, and proximity to public transportation. What is the site condition? Is the site a Brownfield, Greenfield, Wetland, or a Waterfront? We look at soil conditions and look at the 100 year flood plain. What utilities are on site? Electric, gas who is the provider if any? City water& sewer or well and septic. Plans and Engineering Plan review Review plans for completeness Ensure the plan is feasible Review the plan for details Engineering Verify that the plan is buildable Ensure that there are no potential problems with the design Review the building orientation

13 Contractor and Contract conditions Contractor information Name of the builder Years in business What credentials do they have What is their area of expertise Review the companies insurance policy Check references Conditions of the contract Description of the work. Has anything been overlooked? How detailed is the description? Is there a list of sub-contractors? Subcontract agreements Lien waivers Payment conditions

14 Legal obligations Obligation of the contractor Obligation of the owner Provisions In the case of contractor default In the case of owner default In the case of dispute (owner or contractor) Path of mediation Path of arbitration Path of litigation Change Orders Acceptance of change Required change Payment procedures Down payment Construction draw request Terms of payment Release of lien Retainer

15 Quality assurance standard Job site safety Employee drug testing Job site safety plan OSHA requirements Builders risk policy Warranties Workmanship Product and equipment Punch out procedures Certificate of occupancy

16 Phase Two Excavation Soil boring and verification What is the water table? Are the excavation depths too deep or shallow? Has the compaction and backfill been done correctly? Footings & foundations Verify footing locations and sizing Check foundations Verify the geometry meets the plans Verify the anchor bolts are correct Check utility sleeves Drainage and waterproofing Check foundation coatings Check perimeter drains and tiles

17 Framing and structural Verify beam size and locations Check openings to verify correct size Check truss layout is correct Vapor and thermal protection Check roofing and flashings Verify insulation R values Blower door test is an additional cost. (primarily for Green and LEED certifications) Thermal imaging is an additional cost. (primarily for Green and LEED certifications)

18 Mechanicals Inspect plumbing rough ins Verify sizing and locations HVAC rough ins Check equipment size (BTUs and SEER ratings) Check sheet metal work and ducting Electrical rough ins Verify switch locations Check service entrance Concrete Inspect concrete flat work Check proper expansion joints Verify correct slope Inspect overall quality Site Inspect final grade for proper fall away from the structure Check for silt control and erosion issues

19 Phase Three Finish work Sheet rock finish Look at what level of finish is specified vs. what is done on site Verify smooth or texture and type Check overall quality Paint work Verify number of coats What type of paint was used Color and sheen signed off by owner or architect Verify Green label and low VOC levels (primarily for Green and LEED certification) Trim and doors Verify the materials used on site are what is specified in the contract or building plans Check the overall craftsmanship of the installation Cabinets and casework Verify the materials match what was specified Check the overall quality of the installation Flooring Verification of the materials used match specification Check the quality of the installation Verify Green label plus (for Green and LEED certification)

20 Punch out Review the punch list from owner to contractor Are the items reasonable Is the time line for completion realistic Check all systems (HVAC, Plumbing, Electrical) to verify all are working properly Certificate of occupancy Verify that all local inspections have passed and that there are no pending violations Turn over the project to the owner Verify that the final payment has been made to the contractor Ask for release of lien documents from the contractor and sub- contractors Set the move in date and closing for the owner

21 Closing The process will not only keep all parties on track during the project, it will also keep the project itself on track. This will speed up the gap between construction loans and conventional loans Lessens the risk exposure to the lender, borrower and builder The benefits of third party involvement Third parties are generally the end all in disputes Are a useful device in a litigation Third party involvement is an inexpensive insurance policy for all involved parties that helps avoid costly and unwanted situations that can arise from a process as complicated and expensive as the construction process.

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