Construction Verification

1. Construction Verification What is it? How does it work? Who does it benefit?

2. Let me introduce myself • My Name is Brad Rodman • I have been a building contractor for 13 years. • I am a LEED AP, and a CGP • I am a member of the National Builders Association, United States Green Building Council, Elkhart and Goshen Chamber of Commerce. • I have worked on a variety of different projects ranging from the building of residential homes, to restaurants and banquet halls, to laboratories and corporate offices. I have even worked on schools, universities and nursing homes.

3. Through these different experiences I have seen the problems that can arise. • Lack of communication between contractor and owner • No accountability from subcontractors • Unreasonable requests from owners and architects • Poor design and building placement • Mediocre craftsmanship • Weather delays • Misuse of funds • Inadequate documentation • Unsafe work practices • Uninsured contractors • Most of the time the outcome is mediation by a third party and then eventually a very costly and painfully long lawsuit. • During this time the property is usually placed under a mechanics lien that will stick until the issue is resolved or the lien is foreclosed on. • This will usually involve the lender, owner, and contractor. And sometimes a municipality will become involved.

4. Can you see a problem?

5. 5 gal. bucket roof patch

6. I Broke my level

7. This guy must drive a Hummer

8. Confused Plumber

10. After witnessing and being a part of these struggles over the years I have wondered how to avoid these bad situations. • Broken • W Weather Schedules • Over that time I have developed a process and then refined it to address these issues and avoid unpleasant outcomes. • This process is a three phase process that addresses the potential issues head on. • The process is designed to be performed as a third party “verification process” that leaves the builder and owner relationship safe from damaging issues.

11. The Process

12. Phase one • Site selection • Is the location viable for the proposed project? • We look at traffic count, demographics, neighborhood quality, and proximity to public transportation. • What is the site condition? • Is the site a Brownfield, Greenfield, Wetland, or a Waterfront? We look at soil conditions and look at the 100 year flood plain. • What utilities are on site? • Electric, gas who is the provider if any? City water& sewer or well and septic. • Plans and Engineering • Plan review • Review plans for completeness • Ensure the plan is feasible • Review the plan for details • Engineering • Verify that the plan is buildable • Ensure that there are no potential problems with the design • Review the building orientation

13. Contractor and Contract conditions • Contractor information • Name of the builder • Years in business • What credentials do they have • What is their area of expertise • Review the companies insurance policy • Check references • Conditions of the contract • Description of the work. • Has anything been overlooked? • How detailed is the description? • Is there a list of sub-contractors? • Subcontract agreements • Lien waivers • Payment conditions

14. Legal obligations • Obligation of the contractor • Obligation of the owner • Provisions • In the case of contractor default • In the case of owner default • In the case of dispute (owner or contractor) • Path of mediation • Path of arbitration • Path of litigation • Change Orders • Acceptance of change • Required change • Payment procedures • Down payment • Construction draw request • Terms of payment • Release of lien • Retainer

15. Quality assurance standard • Job site safety • Employee drug testing • Job site safety plan • OSHA requirements • Builders risk policy • Warranties • Workmanship • Product and equipment • Punch out procedures • Certificate of occupancy

16. Phase Two • Excavation • Soil boring and verification • What is the water table? • Are the excavation depths too deep or shallow? • Has the compaction and backfill been done correctly? • Footings & foundations • Verify footing locations and sizing • Check foundations • Verify the geometry meets the plans • Verify the anchor bolts are correct • Check utility sleeves • Drainage and waterproofing • Check foundation coatings • Check perimeter drains and tiles

17. Framing and structural • Verify beam size and locations • Check openings to verify correct size • Check truss layout is correct • Vapor and thermal protection • Check roofing and flashings • Verify insulation R values • Blower door test is available @ an additional cost. (primarily for Green and LEED certifications) • Thermal imaging is available @ an additional cost. (primarily for Green and LEED certifications)

18. Mechanicals • Inspect plumbing rough ins • Verify sizing and locations • HVAC rough ins • Check equipment size (BTUs and SEER ratings) • Check sheet metal work and ducting • Electrical rough ins • Verify switch locations • Check service entrance • Concrete • Inspect concrete flat work • Check proper expansion joints • Verify correct slope • Inspect overall quality • Site • Inspect final grade for proper fall away from the structure • Check for silt control and erosion issues

19. Phase Three • Finish work • Sheet rock finish • Look at what level of finish is specified vs. what is done on site • Verify smooth or texture and type • Check overall quality • Paint work • Verify number of coats • What type of paint was used • Color and sheen signed off by owner or architect • Verify “Green label” and low VOC levels (primarily for Green and LEED certification) • Trim and doors • Verify the materials used on site are what is specified in the contract or building plans • Check the overall craftsmanship of the installation • Cabinets and casework • Verify the materials match what was specified • Check the overall quality of the installation • Flooring • Verification of the materials used match specification • Check the quality of the installation • Verify Green label plus (for Green and LEED certification)

20. Punch out • Review the punch list from owner to contractor • Are the items reasonable • Is the time line for completion realistic • Check all systems (HVAC, Plumbing, Electrical) to verify all are working properly • Certificate of occupancy • Verify that all local inspections have passed and that there are no pending violations • Turn over the project to the owner • Verify that the final payment has been made to the contractor • Ask for release of lien documents from the contractor and sub-contractors • Set the move in date and closing for the owner

21. Closing • The process will not only keep all parties on track during the project, it will also keep the project itself on track. • This will speed up the gap between construction loans and conventional loans • Lessens the risk exposure to the lender, borrower and builder • The benefits of third party involvement • Third parties are generally the end all in disputes • Are a useful device in a litigation • Third party involvement is an inexpensive insurance policy for all involved parties that helps avoid costly and unwanted situations that can arise from a process as complicated and expensive as the construction process.