The Cleaning Service
Lenny Champagne hired an outside cleaning service after the Board asked him to wait while
we looked into other vendors. Lenny went ahead, on his own, brought in National Cleaning
Systems. Lenny asserts that the outside cleaning service will save us $100,000 per year.
The
company he picked currently has a warrant from the Florida Department of
Revenue because they owe over 15 thousand dollars in sales tax. In
addition, they lost a court case in October where they had to pay a 23 thousand
dollar judgment. A federal tax lien that was placed on them
in December 2010 was just removed this past December.
Does this sound like a reputable firm? The contract,
that was given to us and signed by Vinnie, calls for payment within three
days—a sign of the lack of capital of the firm. We have no idea whether the
staff now working in Southpoint has been checked. Had Lenny been in
communication with Lisa and myself we would have checked the firm before
allowing people on the property.
I had given the office a twenty point checklist for contracts. Obviously
the checklist wasn’t consulted. Had we been in communication and working
together I could have read the contract and seen the many flaws in it. Instead,
it was sent to our attorneys, where for a fee, an addendum was written. The
addendum was sent over to the office, but Lenny ignored it, and never got
National Cleaning Service to sign it. Considering National Cleaning Service’s
background and the lack of a proper contract, we should drop them immediately.
The same thing happened a few months ago, when Lisa Lamarca and Elaine
Jaffe discovered that Best Bet, was (1) unlicensed; (2) uncertified and unqualified
to do some of the work they did on balconies; and (3) improperly insured. Best Bet received almost $400,000, of
Southpoint’s money without a license or proper insurance. Some of the work that we paid them for will be re-done.
We need to be more careful, more professional, in regard to contracts.
Previously, I had refered to a contract checklist that I had written for Southpoint, based on my experieince in business and, more importantly, on one of the condominium classes that I attended. I continue to attend them.
Here it is.
Southpoint Checklist for Contracts
Michael E Katz
Down payment: Zero or as little as can be negotiated.
Rationale:
if a contractor can’t afford to start a job, then he won’t be able to finish.
Bond: Performance bond should be required. On the other
hand, there will be exclusions and we must be aware of them.
Subs: Each sub must meet the same standards as the
General Contractor.
Start Date – Finish Date Bonus? Penalty?
Substantial Completion: To be defined in contract.
Liquidated Damages: To be defined in contract by our attorneys.
Progress Payments: must never exceed work done. We or an
impartial party (our engineer) will sign off on each progress payment.
Releases for Progress Payments: Must be obtained by contractor from Suppliers
and Subs.
Notice of Commencement: To be placed on Public Record—and signed
off at completion of Job.
Named Insured: Southpoint
to be named with address, on every insurance policy including those written for
subs.
Liability Limits:
To be determined by attorneys. Very important.
Certificates of Insurance: including Worker’s Compensation. Delivered to
Southpoint by GC to include Sub’s
insurances.
Property Damage: GC is responsible for any damage
to common areas, or unit owner’s property, whether caused by sub-contractor or
GC.
Remedies: What
are remedies in the event of breach? To
be determined by our attorneys.
Work Schedules:
5 days, 6 days, hours 8 AM until
6PM. Set up times out of regular hours in order
to speed work. Deviations only with Southpoint’s consent.
Proof of Payments:
As work is paid for any payments to subs or suppliers should be
copied to Southpoint. At Job’s final
payment to GC will not be paid unless all proofs have been delivered.
Warranties:
Discuss with attorneys prior to awarding contract.
Damages for Delays in Performance: Discuss with attorneys.
Indemnification:
language to be supplied by Southpoint Attorneys.
Final Payment:
A very delicate and important
matter. It should be large (at least 10%) and should be at least thirty days after
completion of job to Southpoint’s satisfaction and all Permits have been
closed.
Note: Relying on the City of Ft. Lauderdale to
sign off Job, will not protect the Association. The City is not an expert, and
cannot be held liable for mistaken approvals.
Concomitant Service Contracts: During the Job, or at completion, the GC may
request ongoing service contracts. Each
contract must be examined and priced with competitors.
Michael E. Katz
Southpoint
November 2009
Using this check list for every contract would save us a lot of money and heartache.
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Yesterday three Southpointers identified the source of the quote, and one of them was under forty!
The source of "Let's Look at the Record" was Governer Al Smith of New York who was the first Catholic to run for president in the 1920's.
