Condo Info Template

Practice #8 - Think and Say "We"

Drucker tells us the effective executives know they have ultimate responsibility, which can neither be shared nor delegated. They have authority because they have the trust of the organization. This means they are thinking of the needs and opportunities of the organization before their own.

When this attitude is adopted by your team, it becomes a culture. This culture is the underpinning for all the services to each member of the team and, likewise, to the community clients you serve. Within the scope of the contract, all parties (the "We") benefit.

Consider this: Consult with your team and select one contract where there's agreement that the association directors aren't living up to their end of the bargain. They may not be following lawful process, building reserves, taking too much time with frivolous items or are not unified in their purpose. Review the agreement and itemize where there is non- compliance. Then put them on a sixty day notice. They either comply with your definition of "We" or they will have to handle their management without your team.

Either decision is a definite profit move for you.

- Jim Manning - President - Walters Consulting Group -

[]	Does the contractor have a valid contractor's license?	[]	Are the starting and completion dates clearly specified?
[]	Does the contractor have minimally acceptable levels of general liability insurance, automobile insurance and workers compensation insurance?	[]	Is there a liquidated damages (predetermined monetary payment) provision in the contract?
[]	Has the Association been named as an additional insured on all of the contractor's insurance policies?	[]	Are there benefits to the Association if the contractor finishes earlier than expected? Would a performance bonus provision provide incentive to the contractor to finish earlier than required?'
[]	Have all the subcontractors submitted proof of their contractor's licenses and insurance policies?	[]	Can the Association terminate the contract "without cause?"
[]	Has the contractor complied with all of the Association's bidding requirements?	[]	If "cause" is required is it clear under what conditions the contract can be terminated?
[]	Has the contractor supplied references and have the references been checked?	[]	Has the contractor clearly indicated the warranties being given? Are there any materials manufacturers' warranties
[]	Is there a written contract?	[]	What exclusions are there in the warranties? Are these exclusions reasonable?
[]	Has the scope of the work to be performed been clearly defined?	[]	Will the contractor be required to supply a performance bond or labor & materials bond?
[]	Does the Association have to pay start-up costs to the contractor? Is the amount of start-up costs reasonable? (less than 10% of the total contract price)?	[]	Is the contractor required to post a bond to protect the Association from a mechanics' lien recorded by a subcontractor?
[]	Are progress payments required at reasonable intervals?	[]	Have all required bonds been given to the Association before the contractor begins work?
[]	Have payment obligations such as "upon delivery" been deleted?	[]	Have all obligations of the Association to indemnify the other party been deleted from the contract?

[]	Have the payment provisions been written so that the Association only pays for work that has been satisfactorily completed?	[]	Is the contractor required to indemnify the Association for its negligent acts and omissions?
[]	Is the contractor required to submit mechanics' lien releases before each payment?	[]	Have limitation of liability clauses been deleted?
[]	Should the Association write joint checks to the contractor and subcontractors if unconditional lien releases are not provided?	[]	Does the contract require some form of Alternative Dispute Resolution (mediation or arbitration) prior to or in lieu of litigation?
[]	IFI Can the Association hold a retention from each progress payment until the end of the contract?	[]	Is there an attorneys' fee provision in the contract?