CAI-NJ July 2021

MANAGEMENT TRENDS... from page 42.

within the first year c.) the contractor’s insurance is not sufficient or d.) the contractor’s insurance is not sufficiently committed to protect the association through appropriate contractual lan- guage requiring the contractor to both name the association as an additional insured and defend, indemnify and hold the association harmless. The potential consequences of those decisions include: 1. The contractor says he followed the specifications- but there is no proof, because the work was not signed off on by the engineer who wrote the specifications. 2. The roof fails in 7-10 years (by then the contractor could be out of busi- ness or the claim could be barred by applicable statute of limitations) and when the engineer does an inspection to see the problem, dis- covers that specifications were not followed. 3. The board has to hire an attorney to try and sue, but if it was a workmanship issue, how will the attorney prove the contractor did not follow the specifications? The contractor could say that the board or engineer allowed it to do the work according to the contrac- tor’s judgment. In addition, if the contractor does not have sufficient assets, and the contract did not require the contractor’s insurance carrier to name the association as an additional insured and provide appropriate insurance coverages,

A Community Association Management Firm

Management Services for Condominium, Homeowner and Community Associations Since 1991 Courtyards At Smithville 28 S. New York Road, Suite B6 • Galloway, NJ 08205 609-652-8793 • DPM-NJ.com

CONT I NU E S ON PAGE 46

44

J U L Y , 2 0 2 1