Condemned Home - Corrective Action Report 3

[waytsh]

I have been contacted by a local township with a request to come look at a home that has been condemned. It sounds like it is in pretty bad shape and there is not much question that something needs to be done. They mentioned that they will need a corrective action report. What is generally contained in a report like this? Is it typically vague statements or do these reports tend to be more detailed with pictures, engineering sketches and shoring plans? I am just trying to get an idea of what I am getting into before I agree to go look at it.

Also sounds like lawyers and insurance companies are going to be involved. My instincts are telling me to stay away from this one but I am still curious to hear what is expected with this type of report.

 

[WARose]

I'd run about a 4.3 40 yard dash away from this one. No way you are going to predict (accurately) all the time that is going to be blown for meetings, depositions, etc. And nobody will want to pay the real cost of all that for a home inspection.

 

[XR250]

An excavator is probably the best solution

 

[waytsh]

My father-in-law is a blaster. My corrective action report could be his phone number.

 

[oldestguy]

Regardless you need a contract that will cover any unexpected time and costs. Look about a hold harmless clause also.

 

[Tmoose]

I'm wondering about the details of how/why it was "condemned."
Seems like the condemning agency would ( should ) have had to create a report of their own, even if it only consisted of a form with a few boxes checked off.

 

[kipfoot]

This is the first I've heard the term, "corrective action report," but it seems to be a common business school type thing. You can find various examples and vague descriptions online, but in this case I think you'll want to:
1) identify criteria you'll use to judge;
2) identify structural issues and causes;
3) outline potential remedies.
How far you go with number 3 is where the variability in your hours lies, in my opinion. I'd also say that you'll need to be aware of the various goals of the other people involved. Some may want your report to bolster an argument to tear the building down. Others may want your report to bolster the argument that the building can be restored. Budget may allow for remedial work to, "just keep it from falling over," or there may be money to bring back its former glory. It may be this political gray area that are getting your 'run away' senses tingling, though maybe it's much simpler and everyone wants to tear it down and they just need an engineer to say so.

 

[JoelTXCive]

I'm not sure of your area of expertise, but I would want some scope limiting language in my agreement.

For example, are you only looking at structural items, or does the city want you to evaluate environmental type items such as: asbestos, rat infestation, mold, sewer issues etc.

If it's an old structure, it might have all of those issues and more.

I would also want the city to acknowledge that you are only providing an opinion and indemnify me with some hold harmless language.

 

[waytsh]

Thank you for all the input. I think there is going to be a concern about other deficiencies beyond the structural. I would have specific language to limit my scope to the structural items and only those items I am able to visually observe. That is a good suggestion about specifying that I am only providing an opinion and try to incorporate some hold harmless language. Thank you.

 

[KootK]

I think that you can make good money in this kind of space if you've got the stomach for it. Yeah, include all the disclaimers etc. At the end of the day, however, the most important thing is simply to manage expectations. Something like this for me looks like this:

- Hourly at a generous, non-gougy rate. If it looks like I'll go over $4500, I'll ask for approval before going past that. I put the upset about 50% higher than I expect my hours to justify. We're all susceptible to optimism.
- I do think that there should be photos and basic sketches.
- I'll take a look, tell you what I think needs rectifying, and give your a very high level description of what that work might entail. Nothing actionable at this stage other than preliminary budget pricing.

Nobody is likely to be happy with the fee that comes from exerting your CYA self on every damn thing at the outset. That said, I've had plenty of these that started as $4,500 look and sees and turned into $20,000 worth of work and good relationships that paid real dividends in the future.

 

[waytsh]

Thank you KootK. That is helpful. I feel the hardest part of all this is figuring out what is a reasonable rate and of course that expectation changes from client to client.

 

[Ron247]

The following are some criteria I would want before entering into this.

-Confirm the relationship of your client to the building Owner. Example is you work for the city and it is one of their buildings to correct is far different than an individual owns the building and the city is going to make them repair it or tear it down. You need to make sure your Client is going to pay you for any time you have to spend regardless of where that time is spent (forced legal, phone calls etc.) Sometimes, just writing a report, inspecting or commenting makes you easy target to subpoena. They can subpoena you and not pay your time. I had a Client hire me but not tell me this was a potential lawsuit based on their own attorneys advice. Later, their attorney called me to testify but was not going to pay me. He stated he did not have to pay me since I wrote the report and it can be subpoenaed. The Client later told me the attorney advised them not to tell me so they could get a free expert witness. I called the attorney and gave him a demonstration of how bad of an expert witness I am when I am not paid. He decided to pay me.

-KootK is correct that just charging a reasonable rate is good enough. Legal tends to spend more hours on any project than we might think they would.

-Early in the negotiations you need to clarify the "corrective action report" definitions. This is one area you lay out options for them to respond to. I can look and comment verbally or I can look, calculate and comment in writing or I can look, measure, calculate, draw (you get the point).

-I generally start with a flat fee to go do a very preliminary look. Then I can give them a better idea of what "corrective actions" may be like.

 

[SlideRuleEra]

I have been contacted by a local township with a request to come look at a home that has been condemned.
They mentioned that they will need a corrective action report.
Also sounds like lawyers and insurance companies are going to be involved.

I've done quite a bit of this type thing for my company's proposed projects. A typical scenario:

1) Management wants to do something (township demolish the house, in this case), but there is "resistance" by others.

2) Management (township) requests a corrective action report.

3) You provide a generic (not too much detail) report (with a generous fee for yourself) and liberal cost estimates (per KootK's advice).

4) Management (township) is delighted with your report and uses it to prove to "others" that demolition is best.

5) House is demolished... end of scenario.

http://www.SlideRuleEra.net