WestCon Tribune

September 2002

September News

President's Message

Construction Defect Litigation Forum

Web Site Offer

PRESIDENT'S MESSAGE

We look forward to returning from this “summer break” with an important and relevant presentation on warranties and written standards. This is also our joint meeting with ICRI (International Conrete Repair Institute) and an opportunity for us to share our respective organizatons’ knowledge with another group of people.

Looking at the mission statements for both ICRI and Westcon, one sees the similarities in the desire and goal to improve upon and promote the highest quality of professionalism in the construction industry. The monthly meetings and especially the opportunity to co-host a meeting is perhaps one of the best ways to communicate our experiences, better understand our individual contributions, and grow in our “on the job” education.

I would like to welcome and encourage all members and friends of Westcon and ICRI to attend this meeting and share expertise, enlarge their contact base and enjoy what is sure to be an excellent presentation. This is a wonderful opportunity for us all to work together to improve the construction industry.

Construction Defect Litigation Forum

Breaks New Ground

Removing Barriers to Building More Affordable Housing

Construction defect litigation has been singled out as one of the key factors contributing to the decline of housing production over the last decade. A working group of building contractors and trial attorneys, led by State Senator John Burton and building on prior efforts of State Assembly Member John Dutra, is currently trying to bring needed reform to construction defect law.

The Association of Bay Area Governments and its Regional Planning Committee (RPC) spotlighted its crucial importance by sponsoring, with the Silicon Valley Manufacturing Group (SVMG) and other partners, a Construction Defect Litigation Forum on May 31, 2002. Other supporting partners included the American Institute of Architects California Council, the California Building Association, Emerald Fund, Home Builders Association of Northern California, KB Homes, and the Personal Insurance Federation of California.

What is the Issue?

Millie Greenberg, RPC Chair and Town of Danville Councilmember, told the attendees that “the RPC first discussed construction defect reform as a smart growth way to build more housing and more affordable housing. We then used our April meeting to focus on finding a solution to this long debated issue, which then led to the Forum. Resolving the construction litigation dilemma is paramount to affordable housing development and resolving the housing crisis.” Attached housing (condominiums and town homes) is a common source of affordable housing throughout the country, particularly in the Bay Area. With very-low and low income housing needs projected to significantly increase over the next decade, reform legislation is considered critical to opening the door for more affordable housing development.

Co-sponsor SVMG added workforce housing as another dimension in construction defect litigation reform. According to Carl Guardino, President and CEO, “We are concerned about workforce housing and the relationship that this has with our economy. Our surveys show that the market supports housing that is located closer to work centers, which would reduce the amount of time spent commuting.”

The Forum Program

The Construction Defect Litigation Forum was an important event because it refocused the reform discussion to include not only building contractors and trial attorneys, but also insurers, design professionals, developers, affordable housing advocates, homeowners, and local government representatives. Bringing together different viewpoints on construction defect law was considered essential for gaining new insights into the problems and for proposing potential solutions. The Forum’s panel of experts discussed how construction defect litigation affects the industries and interests they represent. All participants, panelists, and attendees reinforced the need for legislation to reform insurance liability, inspection guidelines, dispute resolution, and mediation, and the need to significantly improve the system of communication between homeowners and builders. Ultimately, reform in these areas will lead to higher quality construction of all types. In particular, panelists from the building and design industry described the impact of increasing costs of professional insurance and the tight limits on numbers of attached home units. Kimberely Dellinger, Legislative Advocate for the California Building Industry Association, stated that: “Contractors and subcontractors are seeing drastic increase in insurance costs. Recently, a roofer saw an increase of general insurance costs from $50,000 to $300,000 and a limit of 250 units. The increase in insurance costs and the caps on units severely limits the ability of builders to construct attached housing. Roofing contractors are being pulled into lawsuits over tennis court defects. Builders also need the right to repair before lawsuits go to court.”

Thank  you to Sharon Waterman for submitting this article from the ABAG.

July/Aug 2002 Service Matters is a publication of the Association of Bay Area Governments, the planning and services agency for the  San Francisco Bay Area’s 9 counties and 101 cities.

                        TWO WEBSITE OFFERS

All members of Westcon recieve, as a benefit, a Westcon website. A number of calls have come in recently from members   to enhance or link these existing Westcon websites.

Kate McAllister, who created and maintains our Westcon website is currently offering two great deals for members.

1.   Add up to 4 photos and 500 words of text to your existing member’s page for only $100.

2. Kate will create your own personal website (www.YourCompanyName.com) for a one time fee

            of $425. This offer includes the following:

•Two years free domain name registration

•Four page custom website - not a template site

•Samples and suggestions of ways to organize your site to best meet your needs

•A link from your Westcon member’s web page to your new website

•Additional pages  added now or later for $75/page

For an example of a recent Westcon site created by Kate, visit www.FlooringForensics.com.  For more information, contact Kate at kate@harebrainstudio.com or call 661 722-3060.

IDEAS? If you would like to give a presentation to Westcon, or have ideas or topics you would like discussed, please notify Fred Field, Program Director at (415) 485–5882. All suggestions are welcome!

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