1. Construction Defect Mitigation Construction Cost Recovery Construction Litigation Consultants, LLC Jerry Peck 386-843-1054 Slide 1 of 12 slides / Total Viewing Time: 5 minutes 11 seconds / This Slide - Viewing Time: 15 seconds

2. Inspector Qualifications Jerry Peck Florida Certified and Licensed as: General Contractor Building Code Inspector Building Plumbing Mechanical Electrical Residential & Commercial ICC Certified as: Plans Examiner Building Combination Inspector Building Plumbing Mechanical Electrical Residential & Commercial 18 years as a Private Building Inspector helping mitigate construction defects 3 years Construction Defect Mitigation Inspector / Plans Reviewer Slide 2 of 12 slides / Time Remaining: 4 minutes 56 seconds / This Slide - Viewing Time: 25 seconds

3. What is Construction Defect Mitigation? Plan Review Review of the plans, drawings and manufacturers’ installation instructions to address the many potential deficiencies we typically find, addressing them before construction begins. This review is for both code compliance items and non-code items. Non-code items are items which lead to better construction practices with fewer deficiencies during and after construction. Inspections Inspecting in-progress construction to ensure the construction complies with the plans, drawings, and manufacturers’ installation instructions. Deficiencies will be reported to the specified parties, when the deficiencies are addressed by proper repairs, those items will be re-inspected to verify the deficiencies have been corrected in compliance with the construction documents. Slide 3 of 12 slides / Time Remaining: 4 minutes 31 seconds / This Slide - Viewing Time: 31 seconds

4. What is Construction Cost Recovery? Plan Review Review of the plans, drawings and manufacturers’ installation instructions to address the many potential deficiencies we typically find, addressing them before construction begins. This review is for both code compliance items and non-code items. Non-code items are items which lead to better construction practices with fewer deficiencies during and after construction, with a resulting cost savings. Inspections Inspecting in-progress construction to ensure the construction complies with the plans, drawings, and manufacturers’ installation instructions. Deficiencies will be reported to the specified parties, when the deficiencies are addressed by engineering changes, product changes, or construction method changes which result in a cost savings over making corrections of the deficient items, those items will be re-inspected to verify the changes address the deficiencies in a manner which represents the deficiencies. Slide 4 of 12 slides / Time Remaining: 4 minutes 00 seconds / This Slide - Viewing Time: 30seconds

5. What is the difference between: Construction Defect Mitigation and Construction Cost Recovery? Construction Defect Mitigation is intended to have an end result of fewer deficiencies through correction of those deficiencies. Construction Cost Recovery is intended to recover construction costs for deficiencies instead of making the corrections. The costs can be recovered from subcontractors and material suppliers who presented bids for doing the work / supplying materials ‘In accordance with the contract documents.’, but instead performed work or provided materials which ‘Do not meet the requirements of the contract documents.’ The difference of ‘submitted work and materials’ and ‘delivered work and materials’ is accompanied with a cost savings factor, which should be recovered. Slide 5 of 12 slides / Time Remaining: 3 minutes 30 seconds / This Slide - Viewing Time: 30 seconds

6. Construction Defect Mitigation and Construction Cost Recovery have been combined into one program where the most prudent choice of correction or re-engineering is the goal. There are instances in which re-engineering allowing for materials which do not meet the contract documents and installations which do not meet the contract documents will satisfy rational analysis engineering requirements for job specific conditions while not being in compliance with the contract documents. Changing the contract documents brings those items into compliance with the contract documents. You may decide to recover this cost difference through a credit from the subcontractor / material provider instead of accepting only materials and work which are in compliance with the original contract documents. Slide 6 of 12 slides / Time Remaining: 3 minutes 00 seconds / This Slide - Viewing Time: 30 seconds

7. Items “In Substantial Compliance” When Construction Defect Mitigation is the course of action, after corrections have been completed, those items are re-inspected, with the result being the deficient items are now in ‘substantial compliance with the contract documents’. Those items found not deficient, and those items ‘corrected and no longer deficient’, can be addressed as being “In substantial compliance with the plans, drawings and manufacturers’ installation instructions.” This will reduce, and help defend against, future litigation through detailed documentation of items found to be not deficient, items found to be ‘corrected and no longer deficient’, and those items still ‘deficient’. Each item will have an accompanying photo showing its condition. Each item will have a code or contract document reference regarding its status. Slide 7 of 12 slides / Time Remaining: 2 minutes 30 seconds / This Slide - Viewing Time: 30 seconds

8. Items “In Substantial Compliance with revised engineering” When Construction Cost Recovery is the course of action, after revisions to the contract documents have been completed, those items will be re-inspected, with the result being the item is now not deficient when addressed to the revised contract documents, those items found not deficient with revised engineering can be addressed as being “In substantial compliance with revised plans, drawings and manufacturers’ installation instructions.” As with Construction Defect Mitigation, each item will have an accompanying photo showing its condition and code or contract document reference regarding its status. Slide 8 of 12 slides / Time Remaining: 2 minutes 00 seconds / This Slide - Viewing Time: 30 seconds

9. How do these benefit you and your company? By reducing the number of deficiencies in the construction product, replacing the negative image buyers would have with a positive image regarding your product, “their homes”. Reducing the number of deficiencies reduces the risk of construction system failures, i.e., reduces the risk of leaks, water intrusion, mold, failing cladding/veneer/siding, roofing problems, etc., which reduces the potential for the buyers’ inspectors to berate the house by finding many defects, thus reducing the potential for incessant repair demands, and reducing the potential for future litigation or threat of litigation. By recovering cost when materials and construction means and methods do not meet that which was specified in the original contract documents, yet the materials and construction means and methods are deemed acceptable by you. Revise the contract documents to include what was delivered and built. The cost difference between “what was bid” and “what was delivered” goes back into your pockets, not those of the subcontractor or the material supplier who made or took short cuts. Slide 9 of 12 slides / Time Remaining: 1 minutes 30 seconds / This Slide - Viewing Time: 30 seconds

10. What if I only want one? Plan Review or Inspections, not both? Then we will do only the one you want. Plan Review without Inspections starts the project off on the right foot … without following it with the left foot, hard to make progress that way. Inspections without Plan Review means the inspections are only as good as the plans. Slide 10 of 12 slides / Time Remaining: 1 minutes 00 seconds / This Slide - Viewing Time: 15 seconds

11. Ready for further information and a proposal for your project? Call Construction Litigation Consultants, LLC Jerry Peck 386-843-1054 Slide 11 of 12 slides / Time Remaining: 0 minutes 45 seconds / This Slide - Viewing Time: 15 seconds

12. The End Thank you for viewing this presentation To end slide show, close your internet browser To view again, wait 30 seconds for the slide show to start over. Slide 12 of 12 slides / Time Remaining: 0 minutes 30 seconds / This Slide - Viewing Time: 30 seconds