H. RECOMMENDATIONS FOR LEGAL COUNSEL

FCHOA Purchaser's Handbook - Revision Date: 2021-01-10

1. Most of the homes in Ford’s Colony are custom homes that have been completed without a major incident between the Builder and the Owner. However, there are times when better communication and a comprehensive contract would have been very helpful in solving disputes. The ARC recommends that the Owner retain the services of an attorney prior to engaging in any significant contract and certainly, as in the subject of this Handbook, the construction of one’s home. Since most Owners obtain competitive bids prior to final selection of the builder, legal counsel can help prepare bid specifications that will advise the builders of key contract provisions particular to your concerns’ such as, dates of starting and completing work, how progress and final payments will be made, potential termination and default provisions, and Owner’s financial protection. For example, some Builders may need to decline your request to bid if the completion date is a critical factor in your final selection. Many Builders use a standard American Institute of Architects (AIA) contract form and payment schedule that covers most issues. Your attorney may suggest additional provisions for the bidders that you consider essential to your situation. Your attorney may also research other issues such as the bidder’s history in construction litigation and regulatory matters. Your attorney should then review the final contract.

The ARC maintains a file of letters written to the ARC regarding contractors and products. Property Owners are welcome to review this file. This is simply a file of letters received by the ARC. The ARC does not take a position on the circumstances, messages, or accuracy of these letters, nor does the ARC recommend or not recommend particular contractors. Owners are encouraged to write to the ARC for any reason that they consider helpful to prospective construction decisions.

The ARC also maintains a record of compliance inspections made by Ford’s Colony Security and ARC Volunteer Inspectors, and catalogs the number of weekly warnings/stop work notices given to each Builder. Stop work orders, as a consequence of the Builder’s failure to maintain the job site standards stated in this Handbook or construction deviations from the plans approved by the ARC, may have a significant effect on timely completion and/or the ability for the Owner to fully recover the surety deposit at the completion of the work, among other remedies for violations. The ARC recommends that the Owner’s contract states that the Builder will fully comply with the jobsite standards and policies of the ARC, as stated in this Handbook and states the consequences for the Builder’s failure to comply, including consequences for actions or inactions that subjected the Owner’s surety deposit to be forfeited by the ARC. The ARC also recommends that the builder be responsible for timely notification to the Owner of any notice received by the ARC concerning the job that may affect the completion date of the job and/or the refund of the Owner’s surety deposit.