Download - R2R Meeting 5 pdf
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Wildfire Roadmap to Recovery: Meeting #5, January 17, 2008Rancho Bernardo Community Presbyterian Church
Working with an architect and contractor to rebuild your home
Wildfire Roadmap to Recovery: Meeting #5, January 17, 2008Rancho Bernardo Community Presbyterian Church
Working with an architect and contractor to rebuild your home
Karen [email protected]
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Fine print:
The information provided in this program is intended for general educational purposes only. It should not be construed as legal advice.
The speakers at today’s program are volunteering their time as educators.
Neither United Policyholders nor the Rancho Bernardo Community Presbyterian Church endorse or warrant the message or services of any volunteer speakers.
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United Policyholders’ resources:Tips for reviewing contractor/adjuster estimates to rebuild yourhome.
Where to find it at www.uphelp.org : “Aid to SoCal Fire survivors” section
Sample Scope of Loss/Rebuilding EstimateWhere to find it at www.uphelp.org : “Disaster Relief section, State Specific Relief, CA. Roadmap to Recovery”
Trade summary/rebuilding estimate basicsWhere to find it at www.uphelp.org “Claim Tips” section; tips for fire claimants; sample proof of claim forms
CA. Roadmap to Recovery – links and info re: CSLB. Where to find it at www.uphelp.org; “Disaster Relief” section
“Find (professional) Help” section www.uphelp.org
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Spell things out in advance:
Always use only a Fixed Fee Contract for new construction.
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Periodic payments as phases are satisfactorily completed:
All funds for construction should be held in a fund control account and be dispersed by a third party throughout construction to the general contractor.
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Preventative measures:
Protect yourself from having construction liens placed against your home by getting lien releases or having a preliminary title report done prior to final payment.
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Hire carefully:
Make sure your Architect and General Contractor are fully licensed in the State of California.
Check license status with the CA. Contractor’s State Licensing Board at: www.cslb.ca.gov or call 1-800-321-CSLB (2752).
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Insurance protection:
Make sure:Architect has a minimum of $500,000
worth of Errors and Omissions insurance
General Contractor or Builder has a minimum $1,000,000 liability policy.
NOTE: Many general contractors dropped liability coverage after the cost skyrocketed post 9/11
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Protect yourself in the future:
Make sure your Contractor provides you with a Warranty Policy to cover future defects.
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Speak to references in person:
Speak to no fewer than three references each for your Architect and General Contractor
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Our heartfelt thanks to:
The Rancho Bernardo Community Presbyterian ChurchAll our UP Mentors and SponsorsThe speakers at tonight’s meeting
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Overview of Building Process
Due Diligence in Choosing Architect/Contractor
Patty and Dennis MoserArchitects
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Overview of Building ProcessDue Diligence in Choosing Architect/Contractor
Dennis MoserArchitect
Owner, Moser VenturesFormer member, Board of Directors of the BIACo-founder of Alliance for Habitat ConservationProject Manager, Stonefield merchant builder programs after Cedar and 2007 Fires
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Due Diligence in Choosing Architect/Contractor
Patty MoserArchitect
Owner, Moser VenturesProject Manager, Stonefield merchant builder programs after Cedar and 2007 Fires
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Contract Guidelines/Pitfalls
Jon Epsten, [email protected]
Volunteer, San Diego County Bar Association
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Contract Check Listby Thomas Gatlin
Does the contractor have a valid contractor’s license?(www.cslb.gov/index)
Does the contractor have minimally acceptable levels of general liability insurance, automobile insurance & worker’s comp insurance?
Has the Association been named as an additional insured on all of the contractor’s insurance policies?
Have all the subcontractors submitted proof of their contractor’s licenses and insurance policies?
Has the contractor complied with all of the Association’s bidding requirements?
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Contract Check Listby Thomas Gatlin
Is there a written contract?
Has the scope of the work to be performed been clearly defined?
Does the Association have to pay start-up costs to the contractor?
Is the amount of start-up costs reasonable (less than 10 percent of the total contract price?
Are progress payments required at reasonable intervals? Have payment obligations such as “upon delivery” been deleted?
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Contract Check Listby Thomas Gatlin
Have the payment provisions been written so that the Association only pays for work that has been satisfactorily completed?
Is the contractor required to submit mechanic’s lien releases before each payment?
Should the Association write joint checks to the contractor andsubcontractors if unconditional lien releases are not provided?
Can the Association hold a retention from each progress payment until the end of the contract?
Is final payment required only after all mechanics’ lien rights have been expired?
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Contract Check Listby Thomas Gatlin
Are the starting and completion dates clearly specified?
Is there a liquidated damages (predetermined monetary payment) provision in the contract?
Are there benefits to the Association if the contractor finishes earlier than expected? Would a performance bonus provision provideincentive to the contractor to finish earlier than required?
Can the Association terminate the contract “without cause?”If “cause” is required, is it clear under what conditions the contract can be terminated?
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Contract Check Listby Thomas Gatlin
Has the contractor clearly indicated the warranties being given?
Are there any materials manufacturers’ warranties?
What exclusions are there in the warranties? Are these exclusions reasonable?
Will the contractor be required to supply a performance bond or labor and materials bond?
Is the contractor required to post a bond to protect the Associationfrom a mechanics’ lien recorded by a subcontractor?
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Contract Check Listby Thomas Gatlin
Have all required bonds been given to the Association before the contractor begins work?
Is the contractor required to indemnify the Association for its negligent acts and omissions?
Have all obligations of the Association to indemnify the other party deleted from the contract?
Have limitation of liability clauses been deleted?
Does the contract require some form of Alternative Dispute Resolution (mediation or arbitration) prior to or in lieu of litigation?
Is there an attorneys’ fee provision in the contract?
Has the contract been reviewed by legal counsel?
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Title and Title Insurance Implications of Fire Recovery
Mark J. Tew, [email protected]
Volunteer, San Diego County Bar Association
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Title Insurance v. Homeowner’s Insurance
General Homeowner’s or Casualty Insurance:Continuing premiumsProtection for future anticipated accident or event
Title InsuranceGenerally retrospective in its scope and coverage
From date of Policy (usually purchase date) backwards
A single premium productLimited by Policy limits as of date of Policy
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Contract of Indemnity
A Title Insurance Policy is a contract of indemnity. It does not insure that title is in any state or condition. Rather, pursuant to the covered risks section of the Policy, and subject to the specific terms and conditions of the Policy, it will indemnify the insured in the event the insured has suffered a covered loss.Generally the Title Co. cannot be liable for negligence in failing to identify defect or encumbrance.
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Areas of Title Concern During Rebuilding and Recovery Process
Boundary DisputesEncroachment of own structures onto neighboring propertyEncroachment of neighboring structures onto one’s own property
Discovery of Encroaching StructuresBoundary Walls or FencesWellsLeach Lines
Encroachment Easements
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Tendering the Claim
Date of Discovery2 Year Statute of Limitations from date of discovery of potential title claim
Tender Claim in WritingPreserve record
Postpone Self-Help MeasuresAllow title insurance company to address matterSome self-help measures can limit your policy coverage and can create liability for yourself
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Tendering the Claim
Common areas for denial of coveragePost-policy eventCreated, suffered, or assumed by insuredKnown to the insured, but not to the Company (no notice provided to the company in writing)
Differences in Policy protectionNew CLTA/ALTA Homeowner’s Policy
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Programs and Benefits Offered by Title Industry to Fire Survivors
Lender’s PoliciesDuring refinance40-50% reduction in policy premiums to fire survivors
Owner’s PoliciesReduced rate for re-issuance of existing policy40-50% reduction in policy premiums to fire survivors
Free copies of recorded documentsReduced escrow fees for fire survivors
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Purchasing New Title Insurance after Reconstruction
Lender’s PoliciesObligatory
Owner’s PoliciesCLTA/ALTA Homeowner’s Policy
Substantially more coverageCovered Risks Post-Policy
New Owner’s Policy not necessary in all circumstancesConsult with your Title Officer / RE Agent
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Contact Information
Mark J. Tew, Esq.The Boss Law Firm
7220 Trade Street, Ste. 207San Diego, CA 92128Phone – 619.234.1776Fax – [email protected]
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Break Out Sessions
Open to 9:30 pm: Firm Stop timeUpstairs:
State Farm : Dormer WestFarmers : Skylight WestAllstate : Upper Courtside East
Other Companies: Sanctuary
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