Minimizing Risk And Protecting The HOA in Capital Improvements and Construction Defect Repairs

Construction projects, whether construction defect repairs or capital improvements, pose many risks to HOAs.  Among these risks is the risk that the reconstruction project can result in construction defects.  Universally, HOAs desire to avoid having construction defects arise during any construction project.  Although these defects do occur in reconstruction work, a carefully managed contracting process can properly allocate risk among the parties. Too often, HOAs involved in major repair or capital construction projects simply execute the vendor’s contract without revision.  Executing a vendor contract without careful examination can result in an HOA unnecessarily forfeiting rights and accepting unfavorable terms.  Ultimately, the HOA is the customer and should not simply accept the contract that is offered.

The construction contract can help prevent defects by integrating execution of the work with well-timed quality control inspections by an independent party such as an owner’s representative.  It is imperative that the HOA manage risk by requiring adequate insurance coverage and policy limits in the event a loss.  Additionally, it is critical that the construction contract contains a well drafted indemnity clauses to address claims that may arise associated with liens, regulatory compliance and a host of other issues.

If you are dealing with construction defect repairs or capital improvement projects, the attorneys at Milo D. Miller Law Group, P.C. can assist you in risk mitigation and management before, during and after your project. Contact the attorneys at Milo D. Miller Law Group, P.C. at 720-306-7733.