Using volunteers and HOA liability

Good morning everyone,

Our HOA has used volunteers in the past to get small chores done without having to hire a contractor. Examples would be planting flowers, sanding and painting cabinets and fixing minor carpentry work (by a volunteer who is a contractor by day and had the knowledge).

But now we have a bigger project and I'm worried about the liability. We have a project where we are removing old patio walls and replacing them with new patio walls, we'll also have to remove some trees as part of the project. We have some volunteers who want to help stretch our budget by doing large tree removals and deck removals and patio wall installation themselves.

I think this is too much. The trees are large, they'll require chainsaw work and are located in a courtyard where they could easily damage property if removed incorrectly. Likewise, removal of the patio walls will require chainsaws and heavy labor.

I told the volunteers that they'd need to operate under someone's insurance as ours will not cover any injury or property damage - especially if that injury was to an innocent party (ie, a homeowner walking by or tripping).

One of the volunteers is a contractor and could "employ" these other guys for a few days and submit a formal contract with a bill of $1. That would transfer the liability to them should something go wrong.

They think I am worrying to much and offered to just sign a waiver so the HOA will not be responsible. I'm just not comfortable with that. Frankly, I'd rather pay a few thousand dollars and know the work is insured, the HOA is protected and we'll be able to hold someone responsible if it's done incorrectly.

Does anyone have experience with these types of "volunteer" offers or how I am handling it regarding insurance requirement?

thanks,
Michelle

Are you sure that your insurance won't cover them? Some policies would but it varies from insurance company to insurance company.

I'm not a lawyer but, usually, "$1 contracts" are judged to be shams and ignored by the courts. Not always but usually.

If you don't think that they can do the job, you should try to block them, not argue about insurance. If somebody might be injured (either a worker or a passerby), they shouldn't be doing the work at all, even if they have insurance.

The debate about using homeowners or an outside contractor has a long history here. I'm generally in favor of using homeowners ... if you are confident that they can do the job. Using an outside contractor won't guarantee that you won't be scammed, sued, get shoddy work, have illegal or under-insured workers or all the rest.

MichelleW4 I agree with DanielH1 if you don't think they can do the job then don't let them, But I would be in favor of letting them if the contractor seems able to do the job by his past expierence record and he is willing to sign a waiver of hold harmless the association for any liability for an accident that possibly could happen. I think the man is doing your association a great service in providing all his time and labor for $1. He can write off all of this on his taxes as a donation to your HOA. I also believe his insurance would cover any possible accidents. I think you are worrying a little to much. Its just my opinion. JerrellC

Michelle,

Your friendly, HMO/HOA/Bull Doctor here. My diagnosis is "Scope Creep"
No doubt about it and a scrounge upon the land of HOA's. I personally am a survivor and am presently on step 8.
You first notice the symptoms when your fevered bunch of volunteers request to put in a simple tasteful fountain at your entrance. The local BOD lays a couple hundred on the guy that owns a pick-up and come Saturday, he and a couple of merry men charge down to the Home Depot and by mid-afternoon a Fountain appears noon the entrance lawn area. All come out at night and admire the stupendous job they did and drink about ten bourbons to celebrate. Come around midnight the guy with the pick-up says I got thirty bucks left, let's buy some plants. So that gets done by the only guy sober the next day and all is well, until some hedge would look nice, then a couple of trees, then a six foot wall to keep the kids from throwing detergent into the fountain. Two months later...........the second coming of Sea World..................Scope Creep.

Volunteers are great............I are one.......but you got to watch out for signs of "Scope Creep."

If the contractor is willing to take it on for $1, and he is competent, go for it. But make it realistic, like $100. Make sure he has insurance for this. Property damage or loss of life is very real when cutting down trees.

Tree Cutting Gone Wrong........
http://www.youtube.com/results?search_query=tree+removal+gone+wrong&aq=3

MicheleD Well Maybe a little praying will help you. I'll be sure to include you and your HOA in my prayers tonight. I also we need to return to those days when a man's word was as good as a contract in writing. Again I pray you can resolve you problems without any major costs. Take care JerrellC

Well, it's your time you're wasting not mine.

Those days, by the way, never existed.