Your homeowner association may be faced with a large siding, dryrot or structural repair. These projects often involve a number of disciplines like carpentry, electrical, plumbing and engineering that must be properly integrated for a satisfactory end result. When it comes to accomplishing complex renovation projects, it makes sense to use the services of a professional Construction Manager (CM). Here are some of the reasons:

Subcontractors prefer to work with people who understand their trade since making a profit is based on achieving maximum production and efficiency from a work crew. A good CM provides thorough specifications, scheduling and supervision that allows subs to be more price competitive. On the other hand, when dealing with laymen like homeowners, its common to add a margin to compensate for potential production problems.

CMs help design contracts that include details that keep costly change orders to a minimum. These contracts contain specific time frames for completing the job, penalties for failing to meet the deadline and the hours when the work may be performed. Typical contracts also require written evidence of liability and workers compensation insurance.

HOAs overseeing their own projects often fall into the trap of advancing money prior to work being done. Prepayment is a red flag for trouble. Contractors that require prepayment are often in financial straits or do not have adequate credit to purchase the materials needed for the job. It's not uncommon for these contractors to disappear with the money or pay another job's bills with it.

CMs understand the importance of progress payments and lien releases. Progress payments allow a contractor to receive a portion of the total contract based on the actual work completed. These payments include the contractor's signing of a lien waiver that warrants all employees, subcontractors and suppliers involved in the job have been paid.

CMs handle the complex scheduling of various trades to ensure smooth job progress. Understanding the sequence of construction events is essential. Moreover, CMs "speak the language" and aren't afraid to apply pressure to speed up slow contractors.

In the final analysis, Construction Managers more than pay for themselves in cost savings and quality results. If your homeowner association is contemplating a sizeable or complex project, contact one today to discuss the advantages.

For more innovative homeowner association management strategies, see Regenesis.net.

Published: June 9, 2010

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Richard Thompson owns Regenesis, a management consulting company that specializes in condominium and homeowner associations. He is a nationally recognized expert on HOA management issues. Regenesis publishes The Regenesis Report, a monthly newsletter for HOA boards, developers and managers. To subscribe, go to Regenesis.net. He can be contacted by email at .