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MW (California)
Posts: 16
Posted:
We have a small HOA 30 units and our ponds have been leaking. In the Contract Agreement, which we haven't yet signed for a $65,000 job, it states our contractor: "recommends permits for the improvement. The HOA will be responsible to obtain them."
Our Landscape Committee Chair said "the contractor said IF we approach the City we may be required to install other features that are NOT part of the current renovation plan; And that in addition to permit costs we MAY be asked to submit plans in addition to text descriptions. I therefore did not contact the City and we left permits as optional in the contract. It is my recommendation that we do not pursue them for this project, especially since we are not changing contours and not pouring new concrete."

Doesn't the board have a fiduciary duty to protect the association from liability and wouldn't the board be putting the association in jeopardy if permits are required but not obtained?

If the contract read "No Permits Required" would this protect us?

RogerB (Colorado)
Posts: 5,067
Posted:
MW, the answer IMO is NO!
I would revise the agreement to require the contractor to get all required permits and to be responsible if they do not comply with all of the governmental requirements. Also, I would get the assistance of an attorney to draft the Agreement.
DonnaS (Tennessee)
Posts: 5,671
Posted:

MW,

California has some of the strictest environmental laws in the Country. Going without a permit is suicide to the HOA. I know that in Florida, any contractors or anyone at all doing work on any waterways, ponds and streams are required to be State licensed. They know that permits are required for pond work and could lose a license for not getting the permits. Now if you hire just some Joe Blow company who is not licensed, that is asking for the State to come in and fine you really heavy. Why risk it--just get the permit.
TracieS (Colorado)
Posts: 460
Posted:
I'd say you need a new Landscape Committee Chair. While most of us are volunteers, is this guy willing to put his OWN money on the line for giving your BOD such horrible ADVICE?
JohnB26 (South Carolina)
Posts: 1,569
Posted:
The OWNER is responsible to obtain any legally required permits.

The contractor is exactly that, a (sub) contractor working for the OWNER.

Some trades (such as plumbing and electric) require the person doing (or directly supervising) the work to have a specialty (trade) license, but this does not require the 'vendor' to obtain a permit...the builder/owner is still responsible.

Some projects (usually involving water) may also require state and or federal permits.

Why would you not want to have the work done in a legal and professional fashion?

If you can't afford the ponds ... move on down the road to a place you can afford.

Harsh sounding, perhaps, but fiscally sound advice.
JohnB26 (South Carolina)
Posts: 1,569
Posted:
Quote:
Posted By RogerB on 10/13/2009 9:34 AM
MW, the answer IMO is NO!
I would revise the agreement to require the contractor to get all required permits and to be responsible if they do not comply with all of the governmental requirements. Also, I would get the assistance of an attorney to draft the Agreement.

A-ONE CORRECT

Be prepared to spend $$$$$ on any pond repair(s).
KirkW1 (Texas)
Posts: 1,665
Posted:
I would look to get more information. The city may require a building (or other permit). But the state may require a permit as well. And to assume that you will have to add features to get the permit is a bad idea. But figuring you can just ignore the permit and all will be ok is worse.
LarryM3 (California)
Posts: 37
Posted:
John B
In California the Contractor "Pulls" the permit. Not the owner. That way it can be verified by the Building Dept. that the Contractor is not only licensed but has the necessary "workers comp" insurance. The owner may pay for the permit. If the owner wants to pull the permit under a owner/builder permit he may do so but he is putting the burden of compliance in regards to license/liability on himself. (Not a good thing)
I am a licensed California contractor 30+ years and a HOA board member.
CALL the city and ASK what permits are required !
Larry
MicheleD (Kentucky)
Posts: 4,491
Posted:
Larry, it's been a while since we've had to do this, but I believe it's the same way in Kentucky, too.

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
$65,000 sounds like a pretty big project. If you don't have a permit and a city employee drives by and mentions it to the code enforcement officer, they will place a stop work order on the site immediately. It may take many months to a year to get the project going again, the project may have to be modified to meet ordinances, and you will likely be fined.

Depending on the state they might pull your contractor license or fines for working on a site without a permit regardless of who's responsibility it was to get the permit.

Do people do projects like this without permits? Sure.
Do they get caught? Not everyone.
Is it worth it? That would be up to you and the association.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Excuse me for being stupid, but how does a pond "leak"?
MichaelK11 (Texas)
Posts: 432
Posted:
Quote:
Posted By LarryM3 on 10/14/2009 4:16 PM
In California the Contractor "Pulls" the permit. Not the owner. That way it can be verified by the Building Dept. that the Contractor is not only licensed but has the necessary "workers comp" insurance.
That suggests the following issue: Why does the Contractor want to burden the client (your HOA) with obtaining the permits? That may be a red flag that they are not entirely above-board and may have some difficulty doing it themselves, for reasons that might make you reconsider using them. It's not always safest or cheapest to go with the lowest bid.

To reiterate what has already been suggested, whatever requirements the City has for submitting plans and obtaining permits, any experienced and legitimate contractor should be able to handle as routine preparation for a project, and much more cheaply and efficiently than the HOA could do.

The fact that the Contractor not only wants to make this the HOA's responsibility, but also encouraged the Landscape Chair to evade it, is another red flag.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Susan,

How a pond leaks.
A breach in the perimeter, an under the waterline fissure which goes outward and more than I care to list. That is why experts in waterways should be consulted. It's not like you can stick a finger in it to stop the leak.

I know this stuff from being on a Florida Board with 16 retention ponds in our HOA area. We had to have chemical treatment every 3 months to keep the invasive weeds and algea from clogging the drainage system that went into the creek that went into the river that connected to the intercoastal waterways that went into the ocean.. So this is not a kiddy pond that does not affect other aspects.These all have to be taken with a serious approach.
MicheleD (Kentucky)
Posts: 4,491
Posted:
Donna:

Did the chemical treatment work?

We only have one retention pond and we get major complaints every year from the homeowners about the algae.

But an extension agent told us that because there is an inflow, and an outflow, treatments don't do much good.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Michelle,

As you know, ponds in Florida are merely retention ponds where the street runoff collects, and slowly seeps out into overflow drains. The water is contaminated with fertilizer and pest control chemicals, plus road junk, including exhaust and oil. Because they drain down into the waterways, they are required to be treated.

How well does it work. In one of the larger ponds, my next door 12 year old girl caught an 8 pound bass and turtles and Egrets thrive there. So it does work to treat them correctly. I guess it would depend on how quickly the water transfers out but with some movement of the water,, the algea should be easily treatable.

I cannot tell you how much exactly and we had LOTS of water to treat but at 4 times a year, it seemed like around $55,000. These guys were specialists in this type of service.
MicheleD (Kentucky)
Posts: 4,491
Posted:
That's pretty much what ours are like, too.

Thanks, that was helpful.

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