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I just dropped into the HPP discussion boards and found a posting regarding the road manager position being eliminated. It also included the following link. It is to a page that describes the recent Paradise Drive paving job. The allegations are serious and, if true, have a lot of impact to HPP lot owners.
In the recent Conch (sp?), mention was made of the decision to put together a plan to allow for the paving of the roads. Apparently, they've found that it is more costly to continue the current practice of 'cindering'. While that is a positive step, it looks like there MAY also need to be some introspection to determine what checks and balances need to be in place so that the plan is executed well and that costly mistakes are avoided.
Thoughts? Counter-points?
http://www.hpproadmanager.com/
Noel
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Typical Puna Solution, "Lets pay him in hope he will finish the job!"
Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB,RB
http://www.JohnRabi.com
Typically Tropical Properties
75-5870 Walua Road, Suite 101
Kailua-Kona, HI 96740
(808)327-3185
Posts: 773
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Joined: Dec 2005
When undertaking a large project like this the “Owner” (HPP) should have hired a Project Manager or Construction Management firm.
This person or firm would report directly to the “Owner” acting as an owner’s representative. Any large construction projects are handled this way. The PM or CM would report directly to the board and only pay the contractor on a percentage of completed work. (Progress payments) Additionally they would insure that the work that has been complete is to code. Things like the type of asphalt (Base and or topcoat and the thickness it was applied. Without this type of check and balance the opportunity for corruption can be catastrophic consisting of road failure. The board can’t be expected to be professionals in all types of construction.
If you think health care is expensive now, wait until you see what it cost when it’s free...now here come the taxes.....
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Right on Scott. However, there are more problems there. First of all, hardly anyone ever wants to serve on the Board and once they do they try to save money for the HOA without realizing that by saving it actually will cost more. Endless circle.
Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB,RB
http://www.JohnRabi.com
Typically Tropical Properties
75-5870 Walua Road, Suite 101
Kailua-Kona, HI 96740
(808)327-3185
Posts: 138
Threads: 20
Joined: Aug 2004
Hi Scott, John,
I agree with both of you. Large undertakings like this $0.75MM paving job need to be managed professionally, by contractors who have the experience and can ensure that the job is done right the first time, every time. There is the matter of cost. However, unless board members have the necessary credentials and contracting experience, it is foolish to try to manage the project and it’s inherent risks without one (a PM or Contractor). Here are some missteps that I gathered from the commentary:
- We (HPPOA) hired an unlicensed paving outfit.
- The outfit did not have workers comp insurance.
- ‘Hidden costs’ (70k of additional base course)
- Additional contract to finish the job with the outfit despite the open issues (lack of license and workers comp insurance)
These issues are likely the tip of the iceberg. I think that we made some of these decisions with the intent of keeping the costs down and for the sake of completing the job. However, with many more miles of roads to pave and millions of HPPOA dollars at risk, I think we should ensure that the missteps are prevented. It would be a shame to make the same mistake again. Importantly, we might end up spending more than we should in the long run in the form of liability (who gets sued if an accident as a result of roadwork by an unlicensed paver?) or roads that prematurely deteriorate. With regard to the latter, I’ve noticed that potholes appeared on Paradise shortly after the job was done. These have been fixed but are these symptomatic of faulty material? I sure hope not.
I do agree that this systemic issue doesn’t get fixed overnight. However, it will never get fixed unless residents and lot owners don’t start to demand action and start to get involved. I don’t think that the board alone will be able to make HPP (or any subdivision for that matter) a better place.
Noel
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Joined: Dec 2005
There’s a ton more questions I would have asked prior to the award.
Who wrote the contract?
Who reviewed it? (Lawyers
“Hidden Costs”? It’s either in the contract or not.
If not, then shame on who ever wrote the specs for job. If the contractor left it out of their bid then shame on them and they don’t get paid for that unit.
What are the schedule of values? (How much the contractor gets paid for line items like mobilization stored material, installation per foot, striping, etc.)
What is term of the warrantee on materials and workmanship?
As you know in Federal, State or County work the low bidder gets the project.
But, in the private industry it’s not true.
If you were on the Space Shuttle would you want it built by the low bidder?
Did anyone check the contractor references before it was awarded? You need to look at “Best Value” and not low bidder. This also includes the cost for management and inspection of the work.
I don’t live in HPP so “nuff said”.
If you think health care is expensive now, wait until you see what it cost when it’s free...now here come the taxes.....
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There is a board meeting tonight promptly at 7PM at the Activity Center. Be There!
Unfortunately discussion is limited among the board members only; and honest, prolong dialoge is not an option. Owners can make a one time statement to the board at the beginning of the meeting but this is not productive in addressing propblems, involving the owners, nor aiding in the understanding of what the boards intentions are. Even the General Meetings are set up this way. There is no two way method of communication to resolve issues.
