CREJ - Property Management Quarterly - April 2017
Construction cranes fill the Denver skyline, seemingly permanent fixtures included in all portraits, paintings and postcards that have the Mile High City on display. With the high demand for new construction, fueled by thousands of people moving to Colorado each month, these cranes are here to stay for the foreseeable future. Unfortunately, the lack of quality labor makes it a challenge to meet the increased demands, both in commercial and residential construction. To keep pace with demand, structures often are built quickly. But what impact does this have on the quality of construction? Poor construction quality is the reason construction defects exist. • Codes, standards and installation. Construction defects occur when builders fail to follow building code, manufacturer installation instructions or industry standards. Building codes specify the standards for construction detailed by the applicable municipality. Building codes exist to ensure that construction meets certain safety and quality standards. Consequently, failing to build to code often results in defects. All construction projects are built using materials that contain their own manufacturers’ installation instructions. These are not mere guidelines or suggestions, but instead specific details for how each material should be installed and maintained. Deviations from the manufacturers’ installation instructions often result in defects and, equally concerning, likely will void any product warranty to the detriment of the ultimate owner or occupant. Industry standards are the construction means and methods that those within the building industry generally expect to be utilized when any builder constructs a building. Industry standards include (and often exceed) building code and manufacturer installation requirements. For example, to meet industry standards, builders are required to comply with the recommendations, reports, plans and specifications made by the professionals the builder hired to design the project, such as architects, civil, mechanical and geotechnical professionals. Failing to build a structure in compliance with design professional details may result in defects. • Maintenance or construction repair? Maintenance is the performance of routine care to ensure building systems operate efficiently and the building components meet their life expectancy. This must be an ongoing or regularly scheduled process to sustain the life of the building and its mechanisms. Maintenance can include painting or coating siding and stucco, replacing sealants, servicing mechanical systems, maintaining landscape materials, and performance of upkeep on roofs, parking garages, pools and all other common elements. Repairs, on the other hand, may stem from poor construction. For example, concrete repairs could be caused by bad drainage or incorrect installation. If a community finds itself repairing something frequently, it is time to rethink the repair because the community may be suffering from construction issues that are the responsibility of the builder, not the owners. Simply stated, performing routine maintenance is not the same as performing repairs to a construction defect. Unfortunately, it can be difficult at times to distinguish between the two and mistaking the two can have significant implications. Take windows leaks as an example. If a building is experiencing window leaks, it is possible that routine maintenance is needed to replace the caulking around the window. On the other hand, it is possible that the windows were originally installed in a defective manner necessitating more costly repairs that, in an ideal world, should be paid for by the builders, not the owners. • Deferred maintenance. Deferred maintenance occurs when maintenance activities are postponed to save costs or meet budget requirements. Property owners and managers are strongly advised against this practice because it can shorten life expectance, weakened systems and eventually result in damage or failures. Deferred maintenance also can create an environment that promotes or exacerbates defects and can make it more difficult (and take more time) for owners to discover any construction defects that might exist. As with any defect, the quicker it is discovered and resolved, the more time and money is saved. There are numerous parts that make up a building structure, potentially impacted by construction defects, and some are not immediately visible to the eye. Many failures in a building take several years to grow into the kind of problems that most people would notice. Sometimes it’s hard to tell what is the real cause of an issue. Therefore, it is important to look at whether building components are being used correctly and being maintained in a timely fashion. If a building component is not standing up to its intended use, or if problems exist despite proper routine maintenance, construction defects may be present. For these reasons, owners and management must be aware of the possible situations and warning signs that indicate a defect. Building owners and managers should have a professional firm inspect questionable issues to confirm whether they are maintenance or construction related. With the right help, owners and managers can feel confident about upholding their fiduciary duty to their tenants and homeowners.