Note: On 2/17/11 AYG prepared a Conditional Lien Waiver and documents, signed by both AYG and HOA Mgmt. In this Conditional Lien Waiver and also the signed documents, AYG promised to complete all remaining work within 30 days and agreed upon final payment of $750 to be remitted upon completion. 4/20/11 HOA made decision to pay AYG the final $750.00 under threat of lien. 4/21/11 HOA received AYG Intent to Lien written against both roads, naming Mgmt as the owner, for a new amount of $5250.00, written 4/12/11. Angie’s List Report was near completion when these last 2 events occurred. 7/8/11- Following BBB Mediation during which agreements and promises were made, finalization remains incomplete; BBB report remains an A+. Under continued concern with the threat of lien, the HOA paid AYG an additional $1700 beyond the contract price of $13822.00. My office professionally manages multiple HOA’s & has managed this particular Association for 15 yrs. Property Management demands diplomacy & knowledge for management of nearly every form of construction, finances, & personality type. As an experienced business owner with background as a General Contractor, remodeling contractor, & also experience in the corporate environment, I deeply regret being introduced to AYG through the roofer, and for the unfortunate dedication of HOA time, effort, and expense provided in the belief that this contractor would act professionally, and bring this project to completion using quality workmanship standards.
Description of Work: All Year Gutters (AYG) & Ron Lasek, Owner, were hired for a gutter project at a 49 Unit Townhome Association [Assoc., HOA] including 22 buildings: single families, duplexes & 4-plexes. The contract is based on an insurance claim detailing costs allowed; provided to AYG. AYG came recommended as impeccable by the roofer under consideration for the re-roof project of 21 of the buildings, who spoke of 100’s of projects performed w/AYG. The roofer was later removed from consideration for the project. 11/4/10 The Contract was signed with a $5400 downpayment provided to AYG per the Contract, to reach completion within 30 days, weather permitting. A multitude of issues occurred throughout the project & due to a disagreement between HOA Management (Mgmt) and Ron, the Owner, over quality of workmanship, a superintendent was assigned. Mgmt met with AYG onsite multiple times & provided numerous punch lists as downspouts fell from a total of five buildings & Member complaints were received. 1/28/11 AYG sent an email stating that they are finishing up today and provided an Invoice for $8422. 2/17/11 AYG threatened a lien upon the HOA within two days from notice that they had completed final adjustments. Mgmt explained that the Assoc. required time for an inspection walk & Board approval prior to final payment. Under threat of lien and without knowledge of lien law at the time, the HOA made a decision to hold back $750.00 of the $13,822.00 Contract price, as a minimum that could be applied to completion of the project. The HOA & AYG signed documents 2/17/11 for a partial lien waiver w/ the agreement that AYG would complete the project based on a final punch list provided by the HOA, w/ completion to occur no later than 30 days following. 4/3/11 Mgmt provided AYG with a new punch list following inspection walk with an experienced gutter contractor for an independent evaluation. This punch list eliminated some of the previous punch list concerns with trip hazards that may be considered subjective & also added items not previously apparent to the HOA, such as undersized downspout holes and outlets. 4/7/11 Mgmt contacted AYG regarding completion & was told that Ron considers the project complete & requires the final $750. Mgmt sends email to AYG listing the punch list items that remain incomplete. 4/12/11 Ron of AYG responded to punch list w/multiple emails to Mgmt & letter by USPS to the Board containing false & libelous accusations against Mgmt, and threats of lien & litigation. It is unclear whether AYG shall provide response other than accusations and threats, for the unfinished and incomplete work remaining. Upon receipt of AYG correspondence, 4/13/11 HOA retained the Assoc. Attorney who contacted AYG w/ the following email & follow-up letter, condensed & pasted below. Attorney name & HOA addresses have been removed for privacy. The attorney had attached the wording from the Contract that applied to each punch list item. To save space, the individual comments attached to each list item have been removed, and the punch list is detailed under each heading as it applies: Attorney: It is our understanding from the Association that in spite of numerous requests for AYG to abide by the terms and conditions of the agreement, AYG continues to be in default of the terms of the Agreement. Specifically, the following items are either not done, or done in such a manner as to constitute a material default of the Agreement. (E-mail exhibit attached to Agreement); The Agreement requires the installation of 6" gutters for all replacement gutters. This was not completed at any location on [Second Road] with the exception of minor random areas, such as 2' sections found on some single family homes; The downspouts were not replaced in “3 x 4" as promised; (Paragraph 2 of Agreement, "All work performed by Contractor for Association shall be performed using only professional construction standards ... "): AYG did not install an adequate number of hangars for the gutters, leaving them under-secured, and installed the hangars at differing spans sporadically throughout the complex; AYG did not attach joints securely and used no connectors at joints in most locations; AYG drilled undersized holes for the drainage from gutters into downspouts; Four (4) downspouts installed by AYG have fallen from walls; the 5th downspout to fall at 570 [Second Road] has not been corrected; [and Seventh Bullet "During and throughout all projects, the Contractor agrees to keep a safe and clean work site ... ")]; There is still gutter trash throughout the complex; (Eighth Bullet "Upon conclusion of each work day the Contractors will remove all debris and surplus materials occasioned by the project, and shall leave the site in essentially the same condition as when project began ... ").; AYG cut the gutters at varying lengths, either too short or too long, throughout the complex, leaving many locations with water overflow onto decks, staircases and siding; AYG improperly completed most gutter to wall locations and failed to seal these ends to the wall; AYG partially spray-painted the white end-caps used on the gutters leaving visible white and blotchy ends, rather than buying the correct brown end-caps. AYG then over-sprayed onto the actual gutter; AYG installed downspouts which do not cover the hole they apparently cut in the wrong spot, leaving the water to pour around the opening where gutter meets downspout; AYG either did not use the correct outlets for the downspouts, or incorrectly installed them, allowing water to pour around the downspout versus through it; 570 [First Road] gutters required wedges; the gutters are hanging at an angle and are not installed correctly; 580 [First Road] gutters required wedges; the gutters are hanging at an angle and are not installed correctly; 550 [Second Road] rear gutter is still pulling away; 550 [Second Road] rear downspouts were not replaced; 550A [Second Road] rear gutter and downspout has no drainage; 534 [Second Road] right side gutter replaced with scratched 5" gutter in excessive length; 534 [Second Road] front left gutter; no downspout replacement on 5” gutter installed. existing downspout not sealed correctly to the gutter, and leaking; AYG installed an unnecessary addition to the front gutter at 540 [Second Road] as the gutter was cut too short, which continues to leak onto deck. We have also been provided with your email dated April 12, 2011 in which you state, "No where in the insurance claim, did it cover installing underground PVC. I did tell you that we would agree to unclog any flex hose that was restricted and that we would replace any flex hose that was breached with PVC. You then pushed us to and did/jackhammer install PVC in ten locations. Again, this was NOT covered under insurance or agreed to for payment you simply just wanted it done free of charge and at every location." While you may be correct in that the insurance claim did not address this issue, the Agreement between AYG and the Association specifically states, in Paragraph I,"with all gutter extensions installed using PVC and properly buried" (Emphasis added). AYG's bid to perform the work indicates that all PVC extensions would be buried,which work was included in your original bid. As a result, your failure to complete this task constitutes a default in the terms and conditions of the Agreement. Demand is hereby made that you correct all deficiencies identified above. Failure to cure such deficiencies within 10 days will result in the Association's demand for alternative dispute resolution as mandated by the [Agmt.].This ADR shall be completed prior to commencing any legal action. While the Association recognizes that you may have a right to lien certain areas, please note that C.R.S. 38-22-109 mandates delivery of a notice of intent to file a lien no less than 10 days prior to such recordation of the lien. "In order to preserve any lien for work performed or laborers or materials furnished, there must be a notice of intent to file a lien statement served upon the owner or reputed owner of the property or the owner's agent and the principal or prime contractor or his or her agent at least ten days before the time of filing the lien statement with the county clerk and recorder. Such notice of intent shall be served by personal service or by registered or certified mail, return receipt requested, addressed to the last known address of such persons, and an affidavit of such service or mailing at least ten days before filing of the lien statement with the county clerk and recorder shall be filed for record with said statement and shall constitute proof of such service."(Emphasis added). Until such Notice of Intent to file a lien is properly delivered to the Association, any attempt to lien any portion of the community will be deemed spurious. The Association will aggressively defend title to the units. Please let this office know the date upon which you will commence curing the unfinished portions of the Agreement. If necessary, we will forward names of preferred arbitrator's so we may commence the arbitration proceedings.