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NewsNews America’s Guide ToAmerica’s Guide To

Modern CondominiumModern Condominium

RestorationRestoration

Special Sandy Issue:Special Sandy Issue:

What to Expect From Here OnWhat to Expect From Here On

What You Can Do Now To Avoid Problems LaterWhat You Can Do Now To Avoid Problems Later

What To Look For In a ContractorWhat To Look For In a Contractor

Getting Back On Your Feet… A Step By Step GuideGetting Back On Your Feet… A Step By Step Guide

Our Thoughts Are With YouOur Thoughts Are With You

Sandy

10/29/2012

Coastal Condo News Page 2

From everyone at Coastal Condo News, our thoughts are with everyone affected by Sandy. On a personal note, being in Florida, I man-aged a commercial construction company through hurricanes Frances and Jeanne in 2004. We did a lot of work with condominiums, associations, property managers (& firms), and individual unit owners. The road to recovery is not an easy one, but it can and will be done. Over the next few months, you will experi-ence some of the most trying times you will ever face. Over the next two years, your patience will be tried again and again. At times, getting life back to normal will seem to move at a snail’s pace. The decisions you will have to make over the next year will impact your lives and the lives of your unit owners for the duration of your lives. You and your complex will be forever changed. Remember, it’s not a bad thing. When it’s over, you’ll be able to look back on what you have achieved and be proud. We at Coastal Condo News have been through it, and we hope to serve as a guide to do whatever we can to help you through the next few years. By providing the necessary information, ar-ticles, information, and personal insight, we will reach out to our experts for you. The issues you will be addressing are nu-merous, and they include insurance, legal, con-struction, architecture, engineering, building

codes, permitting, decision making, and many more. We will continually update you with new and useful information to make the process go as smoothly as can be expected. We wilt endeavor to answer all your concerns and address the issues that matter to you, your board, and your resi-dents. We will be addressing the core issues with which you will be grappling, both big and small. The big decisions include hiring the right contrac-tor, dealing with your insurance company and the like. Smaller ones include tips on how to make life just a little bit easier for you and your residents. We wish you the very best, and we want you to know that you can rely on us throughout your recovery and reconstruction that we will be there for you to help in any way we can. Send us your stories, photos, and experi-ences as you move forward. We want to know be-cause we care. And, it will help others along the way as well. On behalf of everyone at Z Global Publish-ing and Coastal Condo News, we hope to help you manage through this difficult time.

Dennis Hill Publisher And the Entire Staff and Management

of Coastal Condo News

Welcome to Coastal Condo News

Special Sandy Edition

Send us your questions, stories, experiences, successes, problems, pictures, and solutions so we can help everyone get through this difficult time. We will get them to our team of experts and find an-

swers and solutions for you. Send them to: dennis.hill@coastalcondonews.com

Coastal Condo News

Special Sandy Edition

In This Issue

Page 3Page 3 What to Expect From Here OnWhat to Expect From Here On

Page 5Page 5 Hiring Your TeamHiring Your Team

Page 6Page 6 Your ContractorYour Contractor

The Most Important ChoiceThe Most Important Choice

What To Look ForWhat To Look For

We will be adding important information daily.We will be adding important information daily.

Check back often for updates.Check back often for updates.

We Are With YouWe Are With You

Coastal

Condo News

Coastal Condo News

Is a Publication of:

Global

Asset Management Group, Inc. 7502 Donlon Road

Fort Pierce, FL 34951 Telephone (800) 518-9659 EXT. 600

Fax (888) 890-4292

www.coastalcondonews.com

Publisher Dennis Hill President

Associate Publisher

Pat Smith

Contributors Gene Smith, JoAnn Hill,

Edith Silberstein, Milt Dean Hill, Jr., Lynn Podlaski,

Will Hyde

General Manager Lynne Hill

Sales Manager

David Schneider

Circulation Edith Mary Cole

Coastal Condo News is a publication of Z Global Asset Management

Group, Inc. Any reproduction of ma-terial contained within this issue is strictly prohibited without the writ-ten consent of Z Global Asset Man-

agement Group, Inc. Please call (800) 518-9659 or visit our web site

www.coastalcondonews.com to learn more about our company, our

products, and our projects.

Coastal Condo News Page 3

Overview: What You Can Expect The First Few Weeks

By Dennis Hill

Will life ever be normal again? Yes. It will. I say that sitting in a house in Florida that was damaged and without power for nearly a month in the aftermaths of hurricanes Frances and Jeanne. We were trapped inside our house for two to three days after each storm waiting for the flooding water in our street to recede. We were lucky. We lost a little bit of roof, a porch in the back of the house was completely ripped from the house, and a few trees fell that thank-fully narrowly missed landing on our home. Some of our neighbors did not fare as well and some had no damage at all. That’s the way these things work sometimes. Electricity is the biggest issue you will face. We were lucky to secure a genera-tor and a window air conditioner, which made life a hundred times more bear-able. However, the most mundane tasks will become chores until you get used to them. As you know by now, just moving around a city with no electricity is a chore. Food, water, ice, and gas are in limited supply, and lines are every-where for virtually everything. Don’t begin to think of it as “the new normal,” as the latest catchphrase goes. It’s not and it won’t be. Stores, gas stations, convenience stores, and grocery stores will begin opening as they get repaired, electrified, and stocked. The afternoon the first Domino’s Pizza opened in town was a line worth the wait and the best Domino’s Pizza I’ve ever had. As a member of your condo board, you are charged with making the decisions that will keep your unit owners safe as well as determine what is in the best interest for you and them as a whole.

Step #1 – Be Careful What You Sign

In the aftermath of the storm, you are under immense pressure and stress. After FEMA and the disaster relief agencies and other organizations, you will be approached by one of the many resto-ration companies who have arrived on the scene to “help.” Many of them are quite good, capable and well equipped. Some are not, and even the best companies can get overwhelmed. You will be asked to sign a contract right then

and there to begin the water extraction, unit and common room drying, and carpet removal. This is important, so take a moment to know what you’re getting into. I can’t tell you how many con-tracts were signed in the parking lots of soggy wet beachside condo complexes that later came back to haunt the signees. I know it’s tough and you are in a hurry to start

making things right, but take more than a moment to thoroughly re-view these con-tracts. Most insurance poli-cies cover it, but make sure.

You are going to be charged for multiple dryers (fans, really) per unit per day in addition to the removal of wet items in the unit. You will also be charged for each employee involved, generators, supervision, trucks, and anything else that is in-volved no matter how small or trivial it may seem. Depending on the size of your complex, this bill will run into the hundreds of thousands of dollars. Don’t be afraid of big number… you will be deal-ing with them from this point forward. At this point, it is a great idea to keep a journal of your activities, who you met, what you did and the date. Also, save everything – every scrap of paper, note, everything no matter how small. I can’t stress that enough. At some point, you may very well wind up in litigation with someone. Those scraps and notes will become essential later on. Investigate you initial “wet removal” company thoroughly before you sign with them. Use what-ever resources you have and check references. A few hours of work here can save months of head-aches down the road. Also, when you sign the contract, make sure you are committing to the drying and removal only. Since a number of these companies will be in the running for the construction work on the building as well, you a far from being in any posi-tion to commit to that.

Beware of Guys in Trucks

As the storm’s aftermath brings out the best in people, it also brings out the worst. Your area will be inundated with trucks with magnetic signs on the side. They will bring chain saws, shovels, rakes, etc. Many of them will be just trying to get some sorely needed work using what they have. However, in your position as a board member, you can’t afford to hire any of them… doesn’t matter who’s nephew they are. They won’t have insurance, workmen’s com-pensation, and some may not even have auto in-surance. One claim or suit, and you have set your-self up for another disaster. Scams will start in abundance, and you will have to beware. We experienced everything from nu-merous people losing deposits on work never

done and people selling broken generators at usury prices.

Architects and Engineers

The first people you will need to hire for the long run are your architect and engineer. They will be with you for the next couple of years – yes, years – and for the duration of the project. So interview and choose wisely. You will need people who are smart, tough, yet good to get along with. They will need to be intimately fa-miliar with local municipal, county, and state building and environmental laws and codes. And

these codes may change. You architect and engineer will be your guides through the entire rebuilding process. They will work directly with you and handle all the initial structural inspections, draw plans for permit ap-proval, work with local building departments, work with your contractor and insurance com-pany, and certify payments to your contractor. They will help you select your contractor as well. Remember, you are working in a fluid environ-ment, and you need people who are on top of any and all changes that may occur as you rebuild.

The Process

Your building will be inspected by your insur-ance company adjuster(s), your architect, your engineer, and your local municipal/county inspec-tors. You and your residents’ safety is at stake, and they will let you know if your building is safe. The initial inspections will also assess initial damage. If it is determined that you building is more than 50% damaged, your insurance com-pany will pay the entire replacement costs of the policy for the building. However, your local au-thorities generally have the final say. Once you have your initial assessments, you will be told if your building is safe to enter or not. Even though it may be safe, it may be unwelcom-ing. (Continues on page 4…)

(...Continued from page 3.) You now need to work with your engineer and architect to hire a contractor. They can and will narrow the field to the best candidate(s) for the job. Plans will be need to be drawn. And you will wait. An electrical engineer will need to be hired. And you will wait. Possibly, de-pending on where your building is in relationship to the shore or wetlands, an environmental engi-neer may be hired. And you will wait. Plans will be submitted to the building department. And you will wait. Plans will be returned to the architect with comments for revisions. And you will wait. You see where I’m going. Initially, it will be a very frustrating experience. Everything will seem to take forever, and even longer given the fact that there are so many others in the same position as you. It’s all perfectly normal given the circumstances. Construction will eventually start, I promise. Initially, your contract will endeavor to get your

unit owners back in there units as quickly and comfortably as possible. The work will continue

around them. As a board member, you will be inundated with meetings: insurance company, contractor, architect, weekly progress meetings, pay request reviews, etc. It is a full time job. If you have a management company, you will still have to work with them closely as all final deci-sions are yours.

Done and Gone… Sort Of

Your building will get done, and you will be holding a retain-age fee of up to 10% of the con-tract to guarantee it. At the end you will be left with a punch list

and warranties on all the products that need them and work that is guaranteed as well. It will have been extremely tough. Most of your resi-dent will be fine throughout the process, but you already know the ones who will be problem children. This is some of what you can ex-

pect. We will provide more information as we

move along. We wish you the best. CCN

Publisher Of The Following Magazines

Commercial Restoration Digest Slecial Hotel & Resort Issue CCN - Florida

800-578-9659, Ext. 1

CCN New England CCN SO-CAL

Overview: Continued It Will Get Better

Coastal Condo News Page 4

Reprinted From A Previous Issue With Updates

Before commencing with any major repair, res-

toration or improvement, a condo board must se-

cure the services of a reputable, licensed profes-

sional engineer, who is certified by your state to

complete site inspections. Such an engineer acts

as the board’s advocate and point person, who

assembles the team of experts that can best con-

tain costs, while ensuring the long term viability of

the work.

The search for a qualified engineer begins with

community reputation. Seek out the recommen-

dations from condo boards of similar buildings.

Of particular importance are the recommenda-

tions of condo boards of multi-story buildings

within a half mile of the coast, as those buildings

have particular issues stemming from a higher as-

set value and particular environmental hazards,

whether the corrosive effect of salt water to the

dangers of flood and wind from hurricanes such as

you have experienced. Make sure the issues are

the same—a recommendation for a roof repair

project does not equal a rail repair project.

Apply the same screen (multi-story condo, simi-

lar work, close to the coast) to references pro-

vided by the engineer because Ocean City is not

Mt. Holly.

The board needs a “Professional Engineer” with

a unique license number verified at your state’s

department of professional regulation. Anything

less—is less than what is needed. And if money,

time, and sanity are at all important, insist on the

documentation showing that the engineer being

considered is certified to do onsite inspections.

This will keep things moving.

The right engineer helps the board evaluate the

qualifications of general contractors. When inter-

viewing the engineer, ask for a description of how

the projecting would unfold, from A to Z. Pay par-

ticular attention to how the engineer describes the

“assemble the squad” process.

Does the engineer emphasize low bids? Or is the

focus more on the references and recommenda-

tions, credentials and insurance, and a thorough

warranty checklist: e.g. do the manufacturers rec-

ognized the contractors and sub-contractors as

“authorized.” A board that gets these things right

up front gives itself security long after the hard

hats leave.CCN

Have a question?

Problem?

A solution?

We want to hear from you!

Send us you’re your story.

dennis.hill@coastalcondonews.com

We will be keeping and ongoing record of

questions and problems of ours and an-

swers and solutions from our team of ex-

perts across the nation, including those in

your area,

We want you to be informed with the in-

formation you need!

Your Team Starts With Your Engineer First Things First

Coastal Condo News Page 5

Reprinted From Previous Issue With Updates There was a time in the earlier days of the structural repair industry when all anyone knew about concrete repairs and waterproofing was based on their knowledge of new construction practices. There was a lot of trial and error, therefore a lot of case studies to learn from at the expense of many condominium buildings. As time went on, fine organizations such as ICRI (International Con-crete Repair Insti-tute) and ACI (American Concrete Institute) gathered some of the sharp-est minds in the fledgling industry and put together standards and tech-nical guidelines for all to follow. Over the years and bring-ing us to current day, methods, ma-terials and technologies have dramatically im-proved the tools the industry has to work with. Nevertheless, with all the improvement in the industry, we never cease to be amazed when we discover faulty repairs previously performed only a few years earlier: repairs where the contractor neglected to square cut the repair edges, did not bother to clean the steel before coating with anti-corrosive agents or just utilized improper materi-als for the application. The list goes on and on. So, It’s not just nature’s harsh elements that sup-port the restoration industry. Unfortunately, some condominium associations make unwise and uninformed decisions concern-ing their choice of engineers and contractors en-suring plenty of repeat business. Aside from repairing older structures and storm damaged structures, the other signifi-cant source of business is repairing the new condominiums built during the big condo construction boom in recent years. This fact may be perplexing to some, however we all watched in amazement as these buildings went up at a record pace. In some cases of particularly speedily built condomini-ums we heard stories of developers giving incentives in the form of lucra-tive bonuses to contractors for extra timely com-pletion. The contractors were eager to play along with the slap-it-together-and-sell-it game, paying no mind to quality control because frankly……it didn’t pay. As a result there is an abundance of multimil-

lion dollar developer defect law suits being liti-gated or settled, subsequently inundating the in-dustry with plenty of work. Keeping this in mind and fast forwarding to cur-rent day and the collapse of the real estate mar-ket: the new construction work has come to a screeching halt with the exception of buildings fortunate enough to have funding in order to fin-ish the projects they started. And now, the unfortunate events of Hurricane

Sandy’s destructive path trough the northeast will force many associations and boards to make ex-ceptionally tough decisions over the coming months and years. For better or for worse, thousands of people are out of work: engineering firms, architectural firms and general contractors, everyone from the worker bee to the project managers. With a lack of work for all these individuals a large number of them have infiltrated the restoration industry at all levels and threaten to tarnish a reputation that many industry veterans have fought to clean up. It is commonplace now for there to be as many as ten or more contractors bidding on a single project, most of whom have only recently come out of the woodwork and have never been heard of before. The question always arises, who invited

them? A misguided engineer, or an ill informed board? When the bids are submitted, will the Boards of Directors know how to differentiate the qualified possibly higher priced contractors from the lower priced unqualified contractors? The mistakes a few misguided engineers or ar-

chitects make at the outset of the bidding process may haunt the project all the way through. It also may cost the condominium hundreds of thou-sands of dollars in unnecessary expenditures. Suffice it to say, concrete restoration is a niche industry requiring a specialized engineer, archi-tect, and contractor. Regardless of how many years of experience an engineer, architect or con-tractor may have in general construction, they may be ill-equipped to oversee a concrete resto-

ration reconstruction and waterproofing job. There has always been a great divide separating new construction practices from the restoration in-dustry’s knowledge of what means and methods of work that stand up over time. Trying to bridge that divide at the expense of the condominium home-owners is a huge mistake. Listed as follows and graphically represented in

the inserts (see inserts) are categories of work with common defects associated with them. These defects are exposed to a great degree dur-ing a storm like Sandy. However, even without defects, a storm causes similar damage that may need to repaired as if it were defective. The items to really look for are:

Building Structure (Shell Construction)

Poor concrete coverage over steel promoting cracking and a condition known as spalling.

Post tension cable anchoring points (pockets) cable is not cut back sufficiently and grease cap is not installed: this promotes corrosions and serious structural failure.

Poor surface preparation promoting stucco cracking and delaminate. “Honeycombing” caused by poor concrete consolidation. See Insert 1.

Waterproofing and Painting

Poor surface prep causes waterproofing or paint to de-laminate. Not allowing for proper cure time on newly poured concrete causing delaminating and fail-

ure. Materials applied at improper millage. Handling and application of products not in

accordance with manufacturers specifications. See Insert 2.

(Continued on page 5…)

Insert #1 Building Structure (Shell Construction)

1. Poor concrete coverage over steel promoting con-crete cracking and “spalling” (see picture on right)

2. Post tension cable anchoring points (pockets) ca-ble is not cut back sufficiently and grease cap is not installed promoting corrosion of anchoring point and serious structural failure.

3. Poor surface prep promoting stucco cracking, de-lamination, and cracking.

4. “Honey combing” caused by poor concrete con-solidation.

Insert #2 Waterproofing and Painting

1. Poor surface prep causes waterproofing or paint to delaminate (see picture on right)

2. Not allowing for proper cure time on newly poured concrete causing delamination and failure.

3. Materials applied at improper millage 4. Handling application of products not in ac-

cordance with manufacturers specifica-tions.

Coastal Condo News Page 6

Concrete And Your Contractor What You Need To Know

Railings Systems

Core drilling and cutting balcony edge bars in the process jeopardizing the structural integrity of railing and balcony. Under-filled post pockets allows water to pool causing excessive moisture in concrete deck (see cause and effect pictures in insert 3). Improper post pocket material and or applica-tion and associated cracking allowing excessive moisture in concrete deck. Aluminum post embedded in concrete deck too close to rebar causing dissimilar metal electro-chemical reaction and corroding railing post and rebar. Open miter joints on mechanically fastened railing systems allowing water intrusion inside aluminum post and down to pocket and corroding rebar. See Insert 3.

Window Systems

Excessive non-code complying bucking requir-ing large sealant joints due to inaccurate field measurements and/or improper installation (see picture in insert 4). Poor surface prep causes sealant failure at pe-rimeter of windows Fastener holes are not blown out (to clean out concrete dust from drilling) before urethane seal-ant and fastener are placed in the hole. Neglecting to seal fasteners causing water in-trusion into structural concrete. See insert 4.

Unfortunately, the list goes on and on. There are contractors out there who perform this work who lack the specific knowledge of the problems despite their pedigree and resume. These are the items you and your engineer will

need to avoid in the reconstruction

process. Condominium associations have one opportu-nity to do it right because in these times the cost of doing it twice may literally put homeowners out of their homes. So, when you are selecting your professionals do not ask them how many years they’ve been in the construction industry. Rather ask and verify how many years they’ve been in the structural repair industry. No matter how thick their resume is, or how professional they appear, have your prospective engineers and contractors fill out a qualification statement that asks the following: 1. How many years have you been in the con-crete restoration industry? 2. How many jobs with similar size and scope have you performed? 3. Are you in any lawsuits resulting from your

work? If they are able to put down satisfac-tory answers on those questions, look into their financial stability, and lastly verify their references. Do not accept one reference per property rather try and get multiple references from each individual project because all too often if they can only manage one reference there’s a high probability that refer-ence is “compromised” in some way. These are important first steps to ensuring a successful project. Suffice it to say, when choosing your design pro-fessionals and contractors, remember, having many years of experience being the cause or at the very least an acces-sory to the problem is not the experi-ence you’re looking for. ccn

Have a question?

Problem?

A solution?

We want to hear from you!

Send us you’re your story.

dennis.hill@coastalcondonews.com

We will be keeping and ongoing record of

questions and problems of ours and an-

swers and solutions from our team of ex-

perts across the nation, including those in

your area,

We want you to be informed with the in-

formation you need!

Insert #3

Railing Systems 1. Core drilling and cutting balcony edge bars in the process jeopardizing the structural integrity of

railing and balcony 2. Under-filled post pockets pool water allowing excessive moisture in concrete deck (see cause and

effect pictures) 3. Improper post pocket material and/or application and associated cracking allowing excessive

moisture in concrete deck 4. Aluminum post embedded in concrete deck too close to rebar causes dissimilar metal electro-

chemical reaction and corroding railing post (see picture on right) 5. Open miter joints on mechanically fastened railing systems allow water intrusion inside aluminum

post to pocket and corrode rebar

Insert #4

Window Systems

1. Excessive non-code complying bucking requir-ing large sealant joints due to inaccurate field measurements and/or improper installation

2. Poor surface prep causes sealant failure at pe-rimeter of window

3. Fastener holes are not blown out (to clean con-crete dust from drilling) before urethane seal-ant and fastener is placed in the hole

4. Neglecting to seal fasteners causing water in-trusion into structural concrete.

Coastal Condo News Page 7

Concrete And Your Contractor: Continued ...Continued From Previous Page

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Coastal Condo News

7502 Donlon Road Fort Pierce, Florida 34951 Phone - 800-518-9659 Fax - 888-890-4292

www.coastalcondonews.com

Global Asset Management Group, Inc., is a

Florida based firm with interests in publishing, in-surance, inspections, and strategic solutions. ccn

Coastal Condo News Page 9