Checklists Archives - Page 2 of 2

Bidding Checklist

In every bidding situation, consider the following issues:

Has the board defined its goals and objectives in this bid process?

Are there any bidding requirements in the Association’s governing documents that the board should follow (i.e., a requirement to obtain at least 3 bids)?

Will professional assistance be needed to draft the specifications for the job, and/or to evaluate the bids? Have complete plans and specifications been written to specifically define the scope of work to be performed?

Is the bid due date clearly stated? Have the bidders been given enough time to submit complete and accurate bids?

Should a pre-bid job walk be scheduled? Mandatory or optional?

Have interviews with the bidders been scheduled? What questions will be asked?

Who will check the bidder’s references and what questions will be asked of the references?

Who will check that the bidder has an active California Secretary of State registration?

Who will check the bidder’s Contractor’s State License Board profile for any prior complaints/violations? If there are any complaints/violations, does the bidder have a good explanation?

What special requirements does the association have? Are these listed in the bidder’s information materials?

Are bids to be submitted sealed or open?

Will unsuccessful bidders be told why they were not awarded the job?

Are the following forms included in the bid package? Invitation to Bid; Bid Form; Contractor’s Qualification Form; Designation of Subcontractors; Insurance and Licensing Information Form; Contractor’s Certification of Applicability of Specifications; Special Instructions; Contract Form

Does the Contractor’s Qualification Form ask for all of the following? Form of company and company principals; Years in business; Number of employees; Number of previous lawsuits/claims; References for similar jobs; Bonding capacity/surety information; Financial information; Dollar volume of business in past year(s) and value of current work in progress

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Contracting Checklist

In every contracting situation, from the smallest everyday project to the largest construction project, consider the following issues:

Does the contractor have a valid California contractor’s license for the relevant specialty?

Does the contractor have minimally acceptable levels of general liability insurance, automobile insurance and worker’s compensation 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?

Have all HOA and insured versus insured exclusion and contractor’s condition endorsements been deleted?

Has the contractor complied with all of the association’s bidding requirements?

Has the contractor supplied references and have the references been checked?

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 the start-up costs reasonable (less than 10% of the total contract price)?

Are progress payments required at reasonable intervals? Have payment obligations such as “upon delivery” been deleted?

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 mechanics’ lien releases before each payment?

Should the association write joint checks to the contractor and subcontractors if unconditional lien releases are not provided?

Can the association hold retention from each progress payment until the end of the contract?

Is final payment required after all mechanics’ lien rights have expired?

Are the starting and completion dates clearly specified?

Is there a liquidated damages (predetermined monetary payment) provision in the contract?

Would a performance bonus provision provide incentive 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 condition(s) the contract can be terminated?

Has the contractor clearly indicated the warranties being given? Are there any materials manufacturer’s warranties?

What exclusions are there in the warranties? Are these exclusions reasonable?

Will the contractor be required to supply a performance bond or labor & materials bond?

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 been 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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Membership or Owner Duties Checklist

Resale Disclosure Statement

Owners of residential properties must provide a completed Real Estate Transfer Disclosure Statement (“Form”) to prospective buyers before reselling residential property. This Form also must be completed by a real estate agent, if any. The Form is extensive and detailed and found in the statute. [CC §1102 et seq.; see e.g., §1102.6]

Smoke Detectors in Owner Units

Each owner must supply and install smoke detectors in accordance with the manufacturer’s instructions in any dwelling intended for human occupancy. Each smoke detector must be operable at the time that any tenant occupies the dwelling unit and must be repaired if the tenant reports a problem. The association is responsible for installing, maintaining and testing smoke detectors in hallways, common stairwells, etc. [H&S Code §§13113.7 & 13113.8]

Carbon Monoxide Detectors in Owner Units

Owners must install an approved carbon monoxide detector in any single-family dwelling unit or for all other existing dwelling units intended for human occupancy. [H&S Code, §§17926-17926.2] Selling owners must disclose in the required Form whether the dwelling unit being sold has a carbon monoxide detector. [CC §1102.6]

Low-Flow Plumbing Fixtures

All single-family dwelling unit owners must replace noncompliant plumbing fixtures no later than January 1, 2014, or January 1, 2017, depending on factors specified in the statute. The date is January 1, 2019, for multi-family residential property and commercial property owners. Failure to provide proof of compliance could prevent the issuance of building permits. It is not clear if multi-family residential includes condominiums and attached planned development housing. See statute for details and disclosure duties. [CC §§1101.1 – 1101.9 and 1102.155] Flow rates of noncompliant fixtures are in CC §1101.3. It may take additional legislation for clarification on how an HOA that does not maintain, repair or replace plumbing fixtures could compel owner compliance. Selling owners must disclose in the required Form whether the dwelling unit being sold has water-conserving plumbing fixtures. [CC §1102.6]