The Dangers of Hiring Contractors

I sometimes get questions concerning the hiring of an outside contractor to perform regular maintenance on the common area's of the community association. Many times, but not always, the governing documents will contain language requiring such maintenance. Therefore, it is up to the Board to ensure compliance with the governing documents and ensure that the maintenance is performed properly.

Generally the Board has two options in these types of situations. First, if the community is small then a professional property management company is probably not necessary. However, this means that the Board will need to ensure that the contractors are properly licensed. You can go to the following website to check contractors licenses http://www.cslb.ca.gov/. In addition, you will need to ensure that they are carrying proper workman's compensation insurance as well. Finally, it would be advisable that you have a written contract with the outside contractor and that the contract is reviewed by either your association attorney or an outside attorney. Following these general steps could alleviate many serious issues in the future.

Second, if community association has a professional property management company then the contract may require that the property management company hire outside contractors to perform the routine maintenance. However, just because the property management company is responsible for the contracting and hiring does not mean that the Board shouldn't be involved in the process at some level to ensure proper compliance. A recent court case is an example of why you want to know who your property management company is hiring.

In April of 2007 a California Appellate court held liable a professional property management company and a general contractor for the injuries that the contractors employee received while trying to install rain gutters in the community . The contractor was uninsured and unlicensed. In addition, the court held that the association was liable as the property manager's principal ,but did not impute liability to the community owners. See Heiman v. Workers Compensation Appeals Board (Cal. App. 4th 2007)

Unlicensed and uninsured contractors can wreak havoc on a community. Without the proper license and insurance it may be the homeowner association that is left holding the bag when the job that they were hired goes unfinished, or an employee the contractor hires is injured while on community property.

Homeowners Association (HOA) Attorney
Note: The information contained is not legal advice and does not establish an attorney-client relationship. Contact us via email Ryan.McClure.Esq@gmail.com or call us at 951.818.0687.