DUE DILIGENCE INSPECTION
(1) Residential Inspection
CLIENTS ARE PURCHASING A NEW OR USED HOME
For more than two decades, owners and investors have hired Jack Phillips of Jackson Construction to manage the inspection process for their residential purchases. Most inspections begin with document review of the original plan set. A basic residential inspection by a generic home inspection service is followed by Jackson Construction inspecting and evaluating the overall integrity of the home to determine if the original home was built correctly. In this inspection, we are searching for anything drastically wrong with how the home was constructed. If necessary, a team of specific trade consultants will be hired to provide the clients' with an accurate accounting of existing property conditions. Inspections are done in phases as to not waste the clients' financial resources.
During inspection, a "Punch List" of incomplete and substandard work is noted where observed. Substandard work is based on "Standard Practices of Industry" which requires work to be done in a "Workmanlike Manner," to standard trade specifications. The term, "Workmanlike Manner," is an industry standard which refers to a desired acceptable standard quality of work and materials observed on the majority of construction projects.
Upon completion of inspections, a phone consultation or brief meeting with clients will determine if a "Correction Report" should be prepared with budget estimates, to negotiate the asking price and accomplish corrective work.
Inspection service charges can vary depending on the age of the residence, size, and the number of structures on the site. In the past, our reports have supported large reductions in the selling price, which more than compensated for the cost of the service.
(2) Residential Inspection:
CONSTRUCTION DEFECT / FORENSIC INSPECTION
Construction defect is common in new construction. Homes are built with many dissimilar materials. Windows sills that require pans and flashing are installed with neither and your new home becomes a leaky moldy mess, a breeding ground for black mold and sickness. Oddly enough, construction defect is more likely to occur in new home construction than in homes built before 1990. In earlier years, homes were constructed by builders and craftsman who were trained by a previous generation of craftsman and builders. In order to qualify for a general contractor's license, an individual was required to complete and show four years of practical work experience. Around 1990, the State of California was broke, so to generate revenue, they waived the practical experience requirements. With no practical experience necessary, the State of California created the modern day "Paper Contractor." Half of the licensed paper contractors in California are unqualified to build a home. The most overlooked phase of construction in the building industry today is Sheet Metal Flashing and Water Proofing. Without proper flashing and house wrap installed, water is allowed to penetrate into areas of the home where little or no ventilation is required. Without ventilation, wet surfaces are unable to dry and become breeding grounds for black mold and fungus which can cause serious health issues. During Forensic Inspection, Jackson Construction will work with specific trade consultants to deconstruct areas of question. As each layer of construction is removed, pictures are taken and notes are made referring to errors made in the construction process that created the defect. A final report is compiled that can be used by Law Firms to recover damages for clients.
Notable Due Diligence Inspections done in the past.
DUE DILIGENCE INSPECTION... OLD HOLLYWOODAround 1992, Jack was called to do a home inspection for actress, Tina Lifford. Miss Lifford found a repossession in Laughlin Park, one of the original gated communities in old Hollywood. A magnificent hillside mansion with a view overlooking Hollywood and Los Angeles, built around 1930. This home is located right around the corner from Charlie Chaplin's original estate. The home sold for a million dollars in 1988. The bank was asking $600,000 because the home had a recent Structural Engineering report that stated the homes foundation needed to be replaced due to cracks and sinking. The estimated foundation replacement cost was $250,000. After a thorough inspection, we determined that only 25 feet of foundation wall needed to be replaced and the engineering report was written by incompetent engineering students, which is typical. Miss Lifford offered the bank $350,000 and they accepted. The foundation cost less than $25,000 to repair. After enjoying the home for many years, Miss Lifford did quite well selling this property.
DUE DILIGENCE INSPECTION... MILL VALLEY Around 2008 when Jack was employed by Project Management Collaborative, we were hired by a potential home buyer to inspect a home in Mill Valley, North of San Francisco. They sent us the home plan which just underwent a major renovation and second story addition. This was about a 3 million dollar home. In plan review, I saw a single story home sitting on a hillside that was transformed into a very tall two story home. What I didn't see, was an underpinning detail for the existing foundation. So I flew up there from LA, met a soils engineer on the site, and sure enough, there was a magnificent, very tall, two story hillside home sitting on the original one story foundation, what a mistake. Otherwise, the home was perfect. We valued the foundation underpinning cost at $40,000. The client got cold feet and decided not to purchase the home.