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Replace Leaking Shower Pan in Master Bathroom (Tenant Occupied)
Modern Bathroom

Projected Cost - $13,500

Actual Cost - $19,000

Future Cost - $4,500

(repair of faulty work)

Projected Schedule - 2 Weeks

Actual Schedule - 21 Weeks

Project Team:

  • International Owner

  • Project managed by Owner’s RE agent

  • General Contractor (selected from Building’s approved contractor list)

  • Building Management

Contractor/Project Deficiencies

  • Showing up on time

  • Protecting the unit prior to and during construction

  • Performing quality workmanship

  • Coordinating with building management

  • Substandard finished product

  • Material failure within 6 months

Lessons Learned

  • RE agent attempted to help the best they could however managing a contractor was not the RE agent’s specialty, nor did they have the time for it daily.

  • Despite this being a relatively small project in scope and price, it quickly escalated out of control due to the fact the contractor was not managed.

  • The Owner and agent didn’t know to add any language to the contract for delay costs or warranty, in turn the Owner was responsible for the cost overrun as well as the repair for substandard work.

Prior to construction tenants had the option to break the lease agreement penalty free or opt for per diem rent credit. Breaking the lease would have cost the owner over $14,000 in lost rental due to the contractor's delays. Tenants chose per diem, projected at $750 rent credit, however due to delays actual per diem was $5,500.

Had the Owner worked with Bomi there would have been:

  • Qualified oversite of the contractor which would have maintained schedule and ensured quality materials & workmanship.

  • Proper language in the contract for delay cost responsibility.

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