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AdamD1 (Indiana)
Posts: 179
Posted:
Hello again,

Another potential issue: our Board member/treasurer is a retired electrical engineer. He would like to fix the lighting for our entrance signs since last year the lawn care provider presumably chopped off the lighting with the mower and left exposed wiring (which was turned off, covered by a certified electrician). He would do the work at cost to us, but should there be any waiver of liability since he is not insured/bonded? I'm curious as to how other HOAs approach this sort of situation. Thanks!
RichardP13 (California)
Posts: 3,868
Posted:
Two options, one have the PM prepare a waiver of liability for the work, making sure the HOA has workers comp insurance. If not, hire a licensed/bonded electrician. One little mistake could cost your association mucha dollars.
GlenM4 (Tennessee)
Posts: 141
Posted:
in our bylaws it says all work must be performed by a licensed company. Do your bylaws or CCRs say anything about how work should be done?
AdamD1 (Indiana)
Posts: 179
Posted:
Quote:
Posted By GlenM4 on 04/27/2018 11:46 AM
in our bylaws it says all work must be performed by a licensed company. Do your bylaws or CCRs say anything about how work should be done?

CC&Rs and Bylaws are both silent on the requirements for maintenance.
DouglasM6 (Arizona)
Posts: 724
Posted:
Evaluate the risks for the specific job. Then make the decision based on that.
SheliaH (Indiana)
Posts: 6,964
Posted:
Quote:
Posted By AdamD1 on 04/27/2018 11:32 AM
Hello again,

Another potential issue: our Board member/treasurer is a retired electrical engineer. He would like to fix the lighting for our entrance signs since last year the lawn care provider presumably chopped off the lighting with the mower and left exposed wiring (which was turned off, covered by a certified electrician). He would do the work at cost to us, but should there be any waiver of liability since he is not insured/bonded? I'm curious as to how other HOAs approach this sort of situation. Thanks!

Howdy!

I'm sure the board member means well by offering to do the work to save money, but we're talking about electricity and so that should be done by a licensed and bonded contractor. If you really want him to do the work, get a waiver, as Richard and Douglas suggests, otherwise, thank him for being thoughtful, but to ensure both he and the association limit liability, any repair work must be done by licensed and bonded people. The Board can always use him as a resource when considering a contractor for similar jobs.

To ensure this sort of thinking is stopped early, the Board might want to pass a resolution specifying various requirements for repair work (e.g. at least 3 bids for work exceeding a certain amount, all contractors must be licensed and bonded, etc.) That shouldn't require a formal change to the CCRs - board resolutions should be used to flesh out the details related to the Bylaws and CCRs. For example, if your CCRs say the association is responsible for maintaining the common areas, resolutions could address things like where and how to obtain bids (those instructions would be carried out by the property manager, if you have one).

In the midst of everything else your board is dealing with, I hope you consider chartering a committee to take a look at the Bylaws and CCRs in detail at some point. They don't have to address every single situation the association may need to address, but it wouldn't hurt to get rid of references to the developer and at least ensure they line up with current state and federal law.

Have a good day!

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Good intentions are usually bad ideas. It's always best to hire only licensed and insured contractors. Electricity is one of those areas where I would not let someone without a license touch. Keep in mind I've worked as an Electrician. Plus Electrical Engineers do NOT equal good Electricians. Believe me, worked with quite a few of them on a few projects. Your either going to have a half finished job or a sign that will be seen from space...

Former HOA President
AdamD1 (Indiana)
Posts: 179
Posted:
Quote:
Posted By SheliaH on 04/27/2018 1:58 PM
Posted By AdamD1 on 04/27/2018 11:32 AM
Hello again,

Another potential issue: our Board member/treasurer is a retired electrical engineer. He would like to fix the lighting for our entrance signs since last year the lawn care provider presumably chopped off the lighting with the mower and left exposed wiring (which was turned off, covered by a certified electrician). He would do the work at cost to us, but should there be any waiver of liability since he is not insured/bonded? I'm curious as to how other HOAs approach this sort of situation. Thanks!


Howdy!

I'm sure the board member means well by offering to do the work to save money, but we're talking about electricity and so that should be done by a licensed and bonded contractor. If you really want him to do the work, get a waiver, as Richard and Douglas suggests, otherwise, thank him for being thoughtful, but to ensure both he and the association limit liability, any repair work must be done by licensed and bonded people. The Board can always use him as a resource when considering a contractor for similar jobs.

To ensure this sort of thinking is stopped early, the Board might want to pass a resolution specifying various requirements for repair work (e.g. at least 3 bids for work exceeding a certain amount, all contractors must be licensed and bonded, etc.) That shouldn't require a formal change to the CCRs - board resolutions should be used to flesh out the details related to the Bylaws and CCRs. For example, if your CCRs say the association is responsible for maintaining the common areas, resolutions could address things like where and how to obtain bids (those instructions would be carried out by the property manager, if you have one).

In the midst of everything else your board is dealing with, I hope you consider chartering a committee to take a look at the Bylaws and CCRs in detail at some point. They don't have to address every single situation the association may need to address, but it wouldn't hurt to get rid of references to the developer and at least ensure they line up with current state and federal law.

Have a good day!

"chartering a committee"... had to laugh at that one. We started a weekly walking group and no one shows up except for a couple members from the communications committee. People just don't care in my hood! Sad but true. We had our attorney redo our governing docs with his suggestions. We will see if we can get our Bylaws changed first (just need Board approval) and go from there. Counting on homeowners to do anything is like pie in the sky.. just not happening. I swear I could fall over dead in my front lawn and people would just drive on by. Everyone is in their own little worlds nowadays!
AdamD1 (Indiana)
Posts: 179
Posted:
Quote:
Posted By MelissaP1 on 04/27/2018 2:59 PM
Good intentions are usually bad ideas. It's always best to hire only licensed and insured contractors. Electricity is one of those areas where I would not let someone without a license touch. Keep in mind I've worked as an Electrician. Plus Electrical Engineers do NOT equal good Electricians. Believe me, worked with quite a few of them on a few projects. Your either going to have a half finished job or a sign that will be seen from space...

I literally laughed out loud... "or a sign that will be seen from space." Good advice. I'll try to nip this in the bud at our next Board meeting, May 1. This Board member also gets really pissy with us when we asked him to secure three bids for our taxes and an audit. He is a hot head, so this should be fun telling him to get insured/bonded, or get three bids for the project.

AugustinD
Posts: 5,144
Posted:
Quote:
Posted By AdamD1 on 04/27/2018 11:32 AM
Another potential issue: our Board member/treasurer is a retired electrical engineer. He would like to fix the lighting for our entrance signs since last year the lawn care provider presumably chopped off the lighting with the mower and left exposed wiring (which was turned off, covered by a certified electrician). He would do the work at cost to us...


What does "at cost" mean? If he makes any money from this job, then I would object. I think it is a bad practice for directors to receive any compensation for doing any work for the HOA. This fellow would not be the first one to pull the wool over the eyes of the Board and members, to help himself to some extra income.

Else I echo what the others have written.
AdamD1 (Indiana)
Posts: 179
Posted:
Quote:
Posted By AugustinD on 04/27/2018 5:18 PM
Posted By AdamD1 on 04/27/2018 11:32 AM
Another potential issue: our Board member/treasurer is a retired electrical engineer. He would like to fix the lighting for our entrance signs since last year the lawn care provider presumably chopped off the lighting with the mower and left exposed wiring (which was turned off, covered by a certified electrician). He would do the work at cost to us...


What does "at cost" mean? If he makes any money from this job, then I would object. I think it is a bad practice for directors to receive any compensation for doing any work for the HOA. This fellow would not be the first one to pull the wool over the eyes of the Board and members, to help himself to some extra income.

Else I echo what the others have written.

What I meant, but didn't say, was he would do the work charging the Association for just the cost of supplies/materials and not for his labor or work. My bad!
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By AdamD1 on 04/27/2018 5:08 PM
I literally laughed out loud... "or a sign that will be seen from space." Good advice. I'll try to nip this in the bud at our next Board meeting, May 1. This Board member also gets really pissy with us when we asked him to secure three bids for our taxes and an audit. He is a hot head, so this should be fun telling him to get insured/bonded, or get three bids for the project.



If you go this route, then I hope you are kidding here and your intent is not to torture the guy. It is nice of him to volunteer. Within the parameters of what the others said, and since you explained he is not making a dime off this but is volunteering, I say let him do it. If you wand to have some fun, then ask him what he is going to do to ensure there is no power to the system he is repairing. Seriously, electrocution along with falling off ladders are leading causes of home accidents.

I think more these days about "paralysis through analysis." Sometimes "just do it" is just fine.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Well, heck ...

I was just getting ready to replace an outlet box in our common area and saw this thread ...kind of a 10 minute job, but now I need to think it over.

Another perhaps related what if ...like the electrical work, say I was a member and had volunteered to paint the entry sign, but fell down while doing “painting” and painters were licensed in the state, or fixed a leaking faucet in the common area and it continued to leak and plumbers are licensed ...

Is this unwarranted fear of electricity or just caution ...
MelissaP1 (Alabama)
Posts: 13,836
Posted:
This is about liability. Let's say you volunteer to fix an outlet at your entrance sign. After the repair, it catches on fire. It burns down the sign and a few bushes. If you were NOT licensed and insured, your going to be paying for that damage. It's your responsibility to restore it back to original condition.

Now if you are licensed/insured then you have coverage for such accidents. Your protecting yourself and your clients from liability. The HOA would have a way to make an insurance claim. Plus if your licensed and did really shoddy work, there are avenues available to remove your license so can't practice anymore.

So it's kind of protecting BOTH parties involved. You don't want to be on the hook if someone gets electrocuted or be the one electrocuted. You will really get the shock in the end..

This also goes for Lawyers as well. You should make sure the lawyer is licensed. It's not just for contractors who do the lawn or plumbing/electrical. Any business that has to be licensed to practice should be verified and only hired.

Former HOA President
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Thanks, Melissa.

I’m still mulling this over ... believe me, I understand the liability issues ... I also understand that to get things done, ya gotta occasionally accept some risk.
KerryL1 (California)
Posts: 14,550
Posted:
The thing is, George, you'd put all your neighbors at risk, not simply your self.

Our HOA insurance carrier has made it very clear that no "volunteers" may get on ladders or mess with electrical or pumping issues in our common areas, no matter how easy a fix.
BenA2 (Texas)
Posts: 1,273
Posted:
I think it depends on your association. If this job is a negligible amount of your budget then it's always best to get a licensed & bonded contractor who you can pass any risk to. Of course, if money is not an issue, you should also be posing this question to an attorney.

In reality, many HOAs don't have a lot of funds and have to do a lot of self-maintenance. If you have a board member or anyone else who is qualified and willing to do the work for free, I say go for it.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Ben this is NOT a money thing. It's an issue if something goes wrong and causes damage, injury, or death.

Let me tell you a story... I volunteered for a charity that winterizes homes and installs dead bolts. Pretty capable person when it comes to home repairs. Have helped build over 25 houses with Habitat and remodeled my own home. The owner asked me to fix a front door to the home while I was there. Not part of the scope but the door had a wide enough gap that it was very easy to break in. Easy peazy... It's just an adjustment to the door knob.

I spent an hour trying to get that door to close again. Could NOT get it to fix. The elderly lady lived in a dangerous neighborhood. Just left her with a front door that opens if the wind hits it. It never had a deadbolt on it and it was never cut out to have one. The issue was not on the list of things we had to do at her house.

So even the simplest of things can get out of hand quickly. Luckily, believe they had to send out a handyman who worked for the charity to go out to fix it. An expense the charity did not plan for.

I learned an important lesson then. It may be something in your wheelhouse but that wheelhouse your working on is NOT your own.

Former HOA President
BenA2 (Texas)
Posts: 1,273
Posted:
Quote:
Posted By MelissaP1 on 04/29/2018 6:04 AM
Ben this is NOT a money thing. It's an issue if something goes wrong and causes damage, injury, or death.

Let me tell you a story... I volunteered for a charity that winterizes homes and installs dead bolts. Pretty capable person when it comes to home repairs. Have helped build over 25 houses with Habitat and remodeled my own home. The owner asked me to fix a front door to the home while I was there. Not part of the scope but the door had a wide enough gap that it was very easy to break in. Easy peazy... It's just an adjustment to the door knob.

I spent an hour trying to get that door to close again. Could NOT get it to fix. The elderly lady lived in a dangerous neighborhood. Just left her with a front door that opens if the wind hits it. It never had a deadbolt on it and it was never cut out to have one. The issue was not on the list of things we had to do at her house.

So even the simplest of things can get out of hand quickly. Luckily, believe they had to send out a handyman who worked for the charity to go out to fix it. An expense the charity did not plan for.

I learned an important lesson then. It may be something in your wheelhouse but that wheelhouse your working on is NOT your own.

For many HOAs money is a major issue. Ours has been using volunteer labor for 20 years with no issues. We simply could not do everything we need to if we hired a contractor for every job. Something can always go wrong, even with a licensed and bonded professional and you do not eliminate the HOAs liability risk just because the contractor signs an indemnity clause, although it helps.

With your story, my takeaway is that you tried to help someone in need and everything worked out fine. You could have advised her to call a licensed contractor, which it sounds like she couldn't afford, so the door would not have been fixed.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I am okay with areas of maintenance that does not require a licensed contractor. We had volunteer days for people to come out to clean up the pool or entrance areas. Nothing wrong with someone pressure washing, painting, or clean-up. The problem comes in those fields that require a license/insurance.

It would be great if someone would volunteer who is a licensed electrician, plumber, or even lawyer. However, you will find them not so willing to do it. Not that they are rude or money hungry people at all. Probably would love to do it. The issue is if they get caught doing the work they can lose their license themselves.

So for me it's great when a group can come together to clean up and do a little things here and there. It's just when you need to pay for a service it's best you do.

BTW: 1 organized volunteer day I had gathered up all the kids in the HOA to come work at the pool. There job was to clean the chairs and clean up that area. I was to be inside fixing holes in the walls and keeping an eye on the kids. As luck would have it, I slipped with the putty knife! Sliced into index finger below the knuckle up to the knuckle. BAD cut. Should have gotten stitches. Had to wrap it up and take all the kids home while holding my finger together. Did not go to the hospital even though took 30 minutes to stop the bleeding. I was working on HOA property when the injury occurred and the President. My work insurance had high deductible. So do I bite the $300 insurance bill? You may find when the bill comes in, that someone will be like? What? Why should I pay this if I was volunteering?

Former HOA President
JohnC46 (South Carolina)
Posts: 14,265
Posted:
It is simply a liability issue. What happens if he screws up? Who gets sued/pays? Best not do it.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Yeah - lots of potential liability.

But, given that without free unlicensed labor, the outlets on our remain broken and allow water to get in ... which is worse ...?

Remember, no money to fix things like this ...

And, Kerry - remember, you are in California 😀
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By JohnC46 on 04/29/2018 5:20 PM
It is simply a liability issue. What happens if he screws up? Who gets sued/pays? Best not do it.

I agree with this wholeheartedly. I was reviewing our new HOA insurance policies the other day and the general liability policy - not to mention workers compensation - won't pay if work was being done on the property illegally. How legal do you think it is if local codes require a licensed electrician for a job and the person you have doing it isn't one?

You think you're saving money but what you really can't afford is exposure to that liability. You and everyone else there risk losing your homes in case there's a serious accident and your insurance company decides not to pay. I would rather not do the work at all than let a non-electrician work on the property even if he was Kirchhoff, Hawking and Maxwell all rolled into one. If local or state laws say you need a licensed electrician for something then you'd better get one.
GenoS (Florida)
Posts: 4,276
Posted:
Sorry, John, second paragraph was directed at the OP and not you.
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By GeorgeS21 on 04/30/2018 8:58 PM
Remember, no money to fix things like this ...

My board a few years ago was like this. Pretending there was nothing they could do. An appalling attitude in my not-so-humble opinion. Raise the damn assessments to pay for it.
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By GeorgeS21 on 04/30/2018 8:58 PM

Remember, no money to fix things like this ...

George, my apologies for the above reply. In another thread you say your association is voluntary. I see how raising assessments isn't practical in that case.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
No problem, Geno.

The voluntary construct is such a destructive governance device - it permeates every decision for the entire neighborhood - and supports freeloaders.

Maddening!

And, back to the outlets ... I would never endanger anyone’s life - have done several hundred outlets on my own homes, but still - I get the liability thing.
DouglasM6 (Arizona)
Posts: 724
Posted:
George, when you ask that question on any forum you will always get the "liability" answer. It is the correct answer. That being said, no body can sue you for not being a licensed electrical contractor. The suit will be for negligence in the repair itself. If your documents and/or insurance policy are silent on the licensing requirement, you can do the job. But understand that you will be held liable if you do the job incorrectly and there are negative consequences.

There's a reason they sell outlets at home depot and lowes. It's not rocket science. Good luck with your decision.
AdamD1 (Indiana)
Posts: 179
Posted:
Quote:
Posted By DouglasM6 on 05/01/2018 11:15 AM
George, when you ask that question on any forum you will always get the "liability" answer. It is the correct answer. That being said, no body can sue you for not being a licensed electrical contractor. The suit will be for negligence in the repair itself. If your documents and/or insurance policy are silent on the licensing requirement, you can do the job. But understand that you will be held liable if you do the job incorrectly and there are negative consequences.

There's a reason they sell outlets at home depot and lowes. It's not rocket science. Good luck with your decision.

I asked our insurance lady about this scenario. Her response: Hello, work comp is not included. Work comp coverage protects the worker if they get hurt. We have the board members covered if they do something wrong and some one sues not if thy get hurt.
DouglasM6 (Arizona)
Posts: 724
Posted:
Quote:
Posted By AdamD1 on 05/01/2018 11:22 AM
Posted By DouglasM6 on 05/01/2018 11:15 AM
George, when you ask that question on any forum you will always get the "liability" answer. It is the correct answer. That being said, no body can sue you for not being a licensed electrical contractor. The suit will be for negligence in the repair itself. If your documents and/or insurance policy are silent on the licensing requirement, you can do the job. But understand that you will be held liable if you do the job incorrectly and there are negative consequences.

There's a reason they sell outlets at home depot and lowes. It's not rocket science. Good luck with your decision.


I asked our insurance lady about this scenario. Her response: Hello, work comp is not included. Work comp coverage protects the worker if they get hurt. We have the board members covered if they do something wrong and some one sues not if thy get hurt.

If there is workman's compensation insurance it will cover it.

In this case, personal medical insurance can be used as well.
BenA2 (Texas)
Posts: 1,273
Posted:
I know Worker's Comp. is different in each state but doesn't it usually only cover employees?
RichardP13 (California)
Posts: 3,868
Posted:
Workers Comp cover contractor that might not been vetted properly to make sure they were properly covered.
AdamD1 (Indiana)
Posts: 179
Posted:
This will be an agenda item next month. I'll let you know how it turns out!

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