The document outlines 10 phases for replacing aging windows and patio doors at a 17-story, 208-unit condominium building constructed in 1964. It discusses determining the association's obligation to complete the $2 million project, investigating repair options, developing construction and funding plans requiring member approval, executing contracts, performing the work, and wrapping up. Consultants, managers, counsel, and members all have important roles to play at various stages, with an emphasis on thorough communication and coordination. The goal is to properly plan and fund the necessary infrastructure repairs.

1. FINDING THE MOST
EFFICIENT ROUTE -
AGING
INFRASTRUCTURES:
A CASE STUDY

2. Intro –
Welcome to Faulty Towers
• Overview of our Process
• Goals of This Exercise
• Overview of Situation
– Condo regime designed to last in perpetuity, but its
physical components not so much
– Faulty Towers Building and Project Case Summary
2

3. Case Study
Faulty Towers
Condominium
3

4. Case Study
Faulty Towers Condominium:
• 17 story building, 208 units
• Constructed 1964
• Converted to Condominium 1983
• Windows and patio doors original from
conversion.
4

5. Problem at Hand:
Window and Patio Door Failures
• Significant leaks and air infiltration;
• Causing damage to other components;
• Scheduled for replacement in phases;
• Full replacement needed now;
• Estimated cost = $2 million;
• Reserve Funds inadequate to cover project costs.
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6. Phase 1: Determining Association
Obligation
• Who is responsible to maintain, repair and replace?
• Is the Association potentially subjected to claims if it
fails to act? Does the Board have a duty to act?
• How may a maintenance, repair or replacement project
be financed?
• Increasing assessments;
• Levying special or further assessments; and/or
• Borrowing funds.
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7. Phase 1: Determining Association
Obligation
Counsel’s Role:
• Identify the party obligated to maintain,
repair and replace;
• Remain sensitive to potential claims for
failure to maintain; and
• Encourage proper assessment of members.
• Why involve counsel from the beginning?
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8. Phase 1: Determining Association
Obligation
Manager’s Role:

9. Phase 1:
Determining Association Obligation
Manager’s Role:
An effective leader is a
Visionary
Communicator
Catalyst

10. Phase 1:
Determining Association Obligation
Manager’s Role:
fundamentals, resources, sensitivities
Let the data drive the dialogue, set the table for
the experts, BIGGER picture
Get the group to a baseline of understandings &
clarity

11. Phase 2: Investigation and Reporting
If Association is responsible to maintain,
repair and replace, Board may engage
Consultant, i.e., construction, design or
engineering professional to conduct
investigation and identify potential repairs.
11

12. Phase 2: Investigation and Reporting
Consultant’s Role:
• Consultant is not one person. There may be several
professionals– Reserve Analyst, Project Engineers,
Architects, and/or Project Managers
• Explain the cost benefit analysis - more testing =
tighter project budget, less testing = need bigger
contingency allowance
• Provide preliminary project estimates with big time
caveats.
12

13. Phase 2: Investigation and Reporting
Counsel’s Role:
• Marshal Association resources:
• What kind of funding is available?
• Who are the key supporters of the project?
• Are there key members in opposition to the project?
• Discuss political issues with the Board;
• Assist the Board and management with proper disclosures (if
required);
• Assist Board in opening discussions about project (at Board
meetings and town-hall style Association meetings).
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14. Phase 2: Investigation and Reporting
Manager’s Role:
See the conditions (ask questions), begin to see logistics
& impact on residents, begin to anticipate…

15. Phase 2: Investigation and Reporting
Manager’s Role:
Frame the data for leadership & the community
Active & curious participant in the process, help
others hit their marks, coordinate the message

16. Phase 3: Development of Construction and
Funding Plan
Manager’s Role:
Impact on members & your operation, think contingencies,
prepare for emotional reactions
Competence, calmness, beware the Law of Omitted
Data, over communicate, under promise

17. Phase 3: Development of Construction
and Funding Plan
Manager’s Role:
• Work with team to establish timelines, trackable cash flow
projections,
• Draft coordinated data sharing plan - Town Hall
Meeting(s), pre & post meeting communications
• This is where you put the Board in a position to…

18. Phase 3: Development of Construction
and Funding Plan

19. Phase 3: Development of Construction
and Funding Plan
Counsel’s Role:
• Facilitate Strong Communication Campaign:
• Clearly lay out issues to membership;
• Explain problems and solutions;
• Encourage open reception by community.
• Demonstrate Impartiality and Assist with Goal of Repair;
• Assist Board in responding to inquiries from Owners;
• Share information in writing on behalf of Board (and at Board’s request);
• Ensure a single message from the Board.
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20. Phase 3: Development of Construction
and Funding Plan
Consultant’s Role:
• Assist Board in selecting appropriate
Reconstruction Plan;
• Analyze affect of Reconstruction Plan cost on
Reserves;
• Assist Board in developing a project budget
(Funding Plan)
• Assist Board in getting support from owners.
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21. Phase 4: Funding the Project
Funding Options:
1. Use Reserves and Operation Funds
2. Special Assessment
3. Bank Loan
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22. Phase 4: Funding the Project
• Varies from community to community;
• Funding options depend on:
• Financial condition of Association;
• Operating Accounts;
• Reserve Funds.
• Magnitude of Project;
• Number of Unit Owners.
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23. PHASE 4: FUNDING THE PROJECT
Option #1
Use Reserves and Operating Budget
(May result in increase in Assessments)
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24. PHASE 4: FUNDING THE PROJECT
Option #2
Special Assessment
• May be buttressed by Loan for all
money to be available up front;
• Allows owners to pay “up front” if able;
• Allows other owners to spread
payments out over time;
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25. PHASE 4: FUNDING THE PROJECT
Option #3:
Bank Loans
1) Association pays for project over time;
2) Application process has qualification
requirements;
3) Consideration of interest and inflation
effects.
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26. PHASE 4: FUNDING THE PROJECT
Consultant’s Role
• Help frame practical implications of options.
• Loan vs. increased cost of phasing analysis.
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27. PHASE 4: FUNDING THE PROJECT
Counsel’s Role:
• Advising Association about any and all
approval requirements;
• Advise Board’s about impacts of statutes
and case law on the approval of large
projects.
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28. Phase 4: Funding the Project
Manager’s Role:
Processes down cold, know when to defer to experts,
remember contingencies…
Let the data drive the dialogue (see a theme??),
frame impact in real terms
Frame the options, put them in a place to make a
good business decision

29. Phase 5: Requests for Proposal and
Bidding Packages
Manager’s Role:
See everyone’s highest & best use, become a u.n.
translator, value vs. cost
Connect the dots, set/communicate expectation,
report results in a way the data can be useful
Make resources available, coordinate, vet the
process in a way that works for the group

30. Phase 5: Requests for Proposal and
Bidding Packages
Consultant’s Role
• Assemble RFP and assist in Proposal process;
• Provide bid results with analysis and
recommendation
• Take the lead in explaining construction and
market realities to the BD
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31. Phase 5: Requests for Proposal and
Bidding Packages
Consultant’s Role (cont.)
• At least three bids generally obtained, by
not required (may vary based on scope of
project).
• Lowest bid not always the best;
• Board not obligated to accept lowest bid
(unless required by governing documents).
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32. Phase 5: Requests for Proposal and
Bidding Packages
Counsel’s Role
• Provide approved construction contract
should be included in RFP:
• AIA or Non-AIA
• Important Terms
32

33. Phase 6: Development of
Comprehensive Project Budget
• Comprehensive budget based on actual bids;
• Board must fit limited amount of funds into
parameters of work necessary.
• Budget for hidden conditions / contingencies
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34. Phase 6: Development of
Comprehensive Project Budget
Counsel’s Role
• Advising Association about any and all approval
requirements;
• Advise Board’s about impacts of statutes and case law
on the approval of large projects.
Consultant’s Role
• Primary provider of data – actual bids + contingencies
• Establish expectation for level of project oversight and
include those costs
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35. Phase 6: Development of
Comprehensive Project Budget
Manager’s Role:
Remember contingencies (another recurring theme!!),
soft costs…
Input as needed
Make resources available (again), frame data,
NEVER throw it! Update /begin to maintaim cash
flow projections

36. Phase 7: Member Approval (if required)
Manager’s Role:
Competence is a key to maintain confidence
By the book, explain the world
Coordination with counsel is key – do it exactly
right

37. Phase 7: Member Approval (if required)
Manager’s Role: Recurring theme…..
Do the hard work on
the front side -
preserve your backside!

38. Phase 7: Member Approval (if required)
Counsel’s Role:
• Review notices, documents, proxies, ballots, timing;
• Coordinate timing of the bid acceptance, any lender
commitment letters (if loan) and member approval voting;
• Drafting voting package for member approval;
• Monitor vote and assist with special meeting or written
consent compilation;
• Advise Board on legal requirements for voting, balloting,
certification of votes and announcement of results;
• Attend approval meetings.
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39. Phase 7: Member Approval (if required)
Consultant’s Role
• Be available to fill in gaps in information.
• Support Board at meetings.
• Be available to answer technical questions from
members at meetings.
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40. Phase 8: Execution of Construction
Contract
Consultant’s Role
• Facilitate contract execution;
• Be intermediary between client (Board) and
contractor.
40

41. Phase 8: Execution of Construction
Contract
Counsel’s Role:
• Review and revise contract;
• Negotiate any remaining open terms with contractor
& architect/engineer or counsel.
• Ensure proper execution.
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42. Phase 8: Execution of Construction
Contract
Manager’s Role:
Dot connector
Keep the info flowing – what does the future
look like?
Coordinate through to completion

43. Phase 9: Performing the Project
Manager’s Role:
• Maintain focus on execution of the plaN
• SWEAT THE DETAILS WITHOUT GETTING LOST IN THE
WEEDS
• VIGILANT FOCUS ON MEMBER PERSPECTIVE IN
EVERYTHING
• EXPECT CRANKY PEOPLE, FOCUS ON SOLUTIONS

44. Phase 9: Performing the Project
Manager’s Role:
• Keep the members informed
• Keep the Board informed
• Communicate “yes” and “you”
• Remind them what you told them without
rubbing their nose in it

45. Phase 9: Performing the Project
Manager’s Role:
• Active participant in progress meetings AND
follow ups
• Fix stuff quickly
• Document
• Detailed project reporting in Board packages
• Make sure the money flows

46. Phase 9: Performing the Project
Consultant’s Role
• Communicate, communicate, communicate.
• Tell bad news quickly;
• Importance of excellent progress meeting
minutes and field notes (mention tracking work
days for liquidated damages);
• Be prepared to explain the need and value of
change orders, address unexpected conditions.
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47. Phase 9: Performing the Project
Counsel’s Role
• Continue to communicate w/ management;
• Continue to be available.
47

48. Phase 10: Project Wrap-up/
Post Mortem
Consultant’s Role
• Importance of punch list and close out.
• Approval of Retainer Payments
• Update Reserve Study?
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49. Phase 10: Project Wrap-up/
Post Mortem
Manager’s Role:
Fat lady ain’t sung yet…this was a good thing. What did we
learn?
Thanks and celebrate. Highlight the benefits to community and
individuals.
Punch list input and close out huge. Motivate exhausted
Board to thank and celebrate. Close out strong

50. Conclusion & Q&A
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