Hello everyone,
We are experiencing some minor issues with our roof and the contractor responsible for it. After three rounds of fixing various defects (faulty underlay membrane, holes in the roof filled with expanding foam, missing clip fasteners, etc.), everything has now been repaired and completed—except for the storm clips. These were not installed correctly or according to the required installation pattern but were placed randomly.
Since the scaffolding is finally going to be removed (it is obstructing the utility groundwork), we have agreed with our project manager that the roofing contractor will give us a €2000 discount and provide a performance bond of another €2000, which will cover a 5-year warranty period.
What exactly does such a performance bond entail? How is it arranged, and are there any disadvantages for me? Would this appear on MY credit report? I honestly have no idea what to expect! Above all, what would our lending bank think about this? Would they even be informed?
I’m a bit at a loss right now...
We are experiencing some minor issues with our roof and the contractor responsible for it. After three rounds of fixing various defects (faulty underlay membrane, holes in the roof filled with expanding foam, missing clip fasteners, etc.), everything has now been repaired and completed—except for the storm clips. These were not installed correctly or according to the required installation pattern but were placed randomly.
Since the scaffolding is finally going to be removed (it is obstructing the utility groundwork), we have agreed with our project manager that the roofing contractor will give us a €2000 discount and provide a performance bond of another €2000, which will cover a 5-year warranty period.
What exactly does such a performance bond entail? How is it arranged, and are there any disadvantages for me? Would this appear on MY credit report? I honestly have no idea what to expect! Above all, what would our lending bank think about this? Would they even be informed?
I’m a bit at a loss right now...
H
hampshire7 Dec 2019 10:40Golfi90 schrieb:
What exactly is a surety bond in this context? How is it arranged, and does it have any disadvantages for me? Will this appear on MY credit report? I honestly can’t imagine what it entails! Especially, what does our lending bank think about it? Are they even informed about it? With the surety bond, the roofer commits to contribute €2000 to a repair within 5 years in case of damage.
The surety bond has no disadvantages for you, as it is a unilateral declaration of obligation. Therefore, it will not be recorded on your credit report—certainly nothing negative.
The lending bank will have no objections to the surety bond itself. However, they rely on the value of your house as collateral. If storm clips are not installed properly, this increases the risk. Whether the bank takes this into account, I cannot say.
Why I would not accept this deal:
The costs in the event of damage would be too unclear for me. The risk of complications with the insurance because I agreed to improper workmanship would be too great—without having it legally clarified.
There are two alternatives—but the additional costs are unacceptable:
1. The roofer installs the storm clips properly.
2. Another roofer installs the storm clips properly, with the costs deducted from the first roofer’s invoice.
If your roofer “no longer wants” to be on site and you have lost trust in their work, it’s worth investing a little money to be able to supervise the execution of the work.
We brought in a roofing master we know for assistance. Without him, as a layperson, I wouldn’t have noticed the remaining defects. I’m a bit disappointed with our project management on that... but that’s a separate issue.
It’s not that no storm straps were installed. The correct installation pattern just wasn’t followed.
In the end, they waived €2000 (about $2200) from the invoice for us and also provided an additional €2000 (about $2200) surety for the warranty period.
A few years ago, storm straps weren’t standard on new builds. So, I don’t see it as that critical... though I might be a bit too trusting...
It’s not that no storm straps were installed. The correct installation pattern just wasn’t followed.
In the end, they waived €2000 (about $2200) from the invoice for us and also provided an additional €2000 (about $2200) surety for the warranty period.
A few years ago, storm straps weren’t standard on new builds. So, I don’t see it as that critical... though I might be a bit too trusting...
T
Trademark7 Dec 2019 11:39Now for a different question: How much does it cost to fix this defect? Is there any rough estimate? Because maybe option 2 from Hampshire could be a possibility.
If the current roofer is "just" unwilling and not completely incapable, maybe the friend could help?
If the current roofer is "just" unwilling and not completely incapable, maybe the friend could help?
N
nordanney7 Dec 2019 12:39Golfi90 schrieb:
And also guarantees an additional €2000 for the warranty period.Keep in mind that it is not the roofer who guarantees, but their bank that issues the bond. It works like cash; the roofer must pay a bond fee to their bank for this. This should give them a strong incentive to avoid any problems during the warranty period. Otherwise, you go to the bank (not the roofer!), present the bond, and take the €2000 with you.
Golfi90 schrieb:
A few years ago, storm straps were not standard in new builds That is certainly not correct. To my knowledge, they have been mandatory since 2011 and were highly recommended even before that. For example, our house was reroofed in 2001 using storm straps, and we do not live in a "storm-prone area." There may have been cases where the site manager didn’t want to do the work or uninformed/thrifty builders chose to skip it voluntarily, but given the risks and liability associated with missing or inadequate storm strapping, those should hopefully have been exceptions.
I wouldn’t accept that deal either. Especially since the site manager very likely makes a profit on it, as the cost estimate almost certainly exceeded the $2,000 (approx.) quoted for the work.
I consider the surety bond pointless. If something happens during the warranty period, the site manager is liable anyway; the bond only protects against the company’s insolvency during that time. Considering the potentially large damages involved (e.g., injured passersby, damaged nearby vehicles), the amount is laughably low.