Page 5 - Chicago Cooperator Winter 2019

CHICAGOCOOPERATOR.COM
THE CHICAGOLAND COOPERATOR —
WINTER 2019
5
QUESTIONS & ANSWERS
Legal
Q
A&
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Using Association Members to Do
Contractor Work
Q
Our board president said that of a potential business conflict with the
her husband was qualified to fellow director and, in cases where as-
perform gutter and minor roof sociations simply have a unit owner not
repair at our community, and would do affiliated with the board perform the
the work for free. He is not licensed or work, potential conflicts with neighbors
insured, yet the other board members who have attempted in good faith to save
agreed to use her husband to avoid doing the association money. Notwithstanding
an assessment. They also agreed that we their fiduciary duty to act on behalf of the
should always try to have members of the association, board members must also
association do work for free if they volun-
teer. Is there cause for concern?
—Conflicted Resident
A “Boards
allowing
unit
owners to perform work of an association member simply volun-
on behalf of the associa-
tion on a volunteer basis should examine self with Section 18(a)(16) of the Illinois
certain issues prior to doing so,” says at-
torney Nicholas P. Bartzen of Chicago-
based firm Levenfeld Pearlstein. “Argu-
ably, the most important consideration either a board member or a corporation
is that of liability for injuries, and insur-
ance. The board should be sure to check or the board member's immediate family
with the association's insurance carrier has a 25% or more interest. Such contracts
to ensure that there will not be a cover-
age issue should the volunteer injure him ed to all unit owners, thus affording the
or herself in the course of the work, or if owners the opportunity to file a petition
the volunteer causes any damage to the for an election to approve or disapprove
association's common elements. In this a contract. Again, given this work is on
particular question, the inquiry relates a volunteer basis and is not with a board
to gutter and roof repairs. The associa-
tion should make it a practice of hiring a board member, a Section 18(a)(16) is-
licensed and insured contractors to per-
form such work. By doing so, the board
ensures that the contractor will be bond-
ed and insured and covered for any dam-
age done to the building. This third-party
coverage is likely non-existent when the
work is performed by a volunteer. Thus,
the board should consult with the asso-
ciation's insurance carrier to determine
what insurance issues may arise from al-
lowing volunteers to perform potentially
hazardous work on the common ele-
ments.
“Another practical concern is whether
the board is comfortable resolving poten-
tial workmanship disputes that may arise
as a result of the volunteer's work on the
building. As the question states, the vol-
unteer is the spouse of a current board
member. If that individual performs
substandard work, or if his repairs lead
to more gutter issues or continued ice-
damming that contributes to leaks into
units, the board must be prepared for the
potentially uncomfortable job of resolv-
ing the dispute with the board member’s
husband and then even footing the bill to
correct or re-do the work. This obviously
puts the board in the precarious position
function simply as neighbors and fellow
owners with those individuals attempt-
ing to assist. Outsourcing the work to a
private contractor obviates any of these
concerns.
“Finally, given that this issue is one
teering, the board need not concern it-
Condominium Property Act, which con-
templates conflicts of interests whereby
the association enters into a contract with
or partnership in which a board member
would require notification to be provid-
member or corporation owned in part by
sue will not be triggered.”
Disclaimer: Th e answers provided in this Q&A
column are of a general nature and cannot
substitute for professional advice regarding your
specifi c circumstances. Always seek the advice of
competent legal counsel or other qualifi ed profes-
sionals with any questions you may have regard-
ing technical or legal issues.
Write to The
Chicagoland
Cooperator and we’ll publish your
question, along with a response
from one of our attorney advisors.
Questions may be edited for taste,
length and clarity. Send your ques-
tions to: darcey@cooperator.com.
Q&A