CAI-NJ November 2020

TUNE UP... from page 32.

where new building envelopes have failed right after original construction, resulting in severe structural damage within 5 to 8 years and 6-figure assess- ments for each owner. A draft transition report is delivered to the board for their review and com- ment. Board members should expect to see a narrative description of each sys- tem in the building, and a description of its condition. If some components are different than what was specified, is the substitution equivalent or inferior? What is the performance or lifetime implica- tions? If there are defects or omissions in any of the systems investigated, the transition study report will identify the costs to remedy the defect or omission. The board’s responsibility is to under- stand the report and make decisions on how to proceed. The report will be shared with the developer and negoti- ations on how to proceed will begin. Hopefully, a good relationship has been established and the developer will make corrections or credit the association to make corrections on their own. If there are significant and costly shortcomings, the association will need legal counsel for assistance in negotiation, mediation, arbitration, or even litigation. Warranty claims can be another possible remedy. There should be a manufacturer’s war- ranty for major common systems like a roof. Individual owners can also make warranty claims on components in their private dwellings. With good professional assistance, a new board can negotiate the tran- sition process successfully. It is the first step in assuming control and manage- ment in the life of an association. n

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