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If you have been following our blog for any time now you know that we have been railing against the practice that is roiling the inspection industry where unethical inspection companies are using Engineers or Architects to robo sign reports that they have written after they have done the inspection. Sb326 clearly requires a licensed architect or engineer to perform the inspection however some companies are trying to deliberately circumvent that requirement and are using contracted labor to do the inspection instead of an architect or engineer.
We made up this form that you should ask your inspection company to fill out and certify/attest that their inspections follow the letter of the law and that a architect or engineer shall be performing the inspection.
The SB326 inspection certification form will give your HOA some legal protection (inquire with your attorney as to what limits there might be) from liability if a company tries to slip one by you. An example is a report that we saw from empire works where the report was clearly written by empire works and there was a letter attached to the report by the architect saying that empire works perform the inspection and that that architect concurred with their findings. Our discussions with attorneys has determined that the report does not meet the requirements of 326.
Download it here for free! The first doc is in word form. For the PDF version click the second that says Inspection Certificate PDF
Fiduciary duty is defined by Merriam-Webster dictionary as a “duty obligating a fiduciary as an agent or trustee to act with loyalty and honesty in a manner consistent with the best interest of the beneficiary of the fiduciary relationship as a principal or trust beneficiary.”
CAI’ magazine “Common Ground” has a very good article in their March April issue on fiduciary duty. Quoting from the article Bob diamond senior council at Reed Smith in McLean Virginia says”the essence of fiduciary duty is to act in the best interests of those who you serve. A director must put aside personal considerations when making decisions on behalf of the owners.”
When it comes to sb326 and fiduciary duty the duty of the board is to carry out the inspections as required by law regardless of cost or that they don’t have money in the associations accounts to pay for it. A lack of knowledge or understanding about sb326 will not be a legal defense or at least won’t be a strong defense to not carrying out an inspection of the common area Exterior Elevated Elements.
A director for a homeowners association must act within the scope of their given authority, acting good faith use ordinary care Act in the best interest of the association and act reasonably when making business decisions.
The reason sb326 exists is because of the tragic collapse of a balcony in Berkeley that resulted in the deaths of seven people and leaving six with lifelong injuries. Warning signs were evident and the property management company failed to investigate the reported deck problem thoroughly. That is one of the reasons that a multi-million dollar settlement was made before the case went to trial.
William Leys Waterproofing Consultants can help Boards meet their fiduciary duties with our thorough and comprehensive inspections of your decks, stairs and walkways. By hiring an experienced waterproofing inspector like Bill Leys, who guarantees that a structural or civil engineer will be performing the structural inspection, helps protect the Association from financial liability. Our inspection team has 20+ years of experience in structural and waterproofing experience.
By hiring an experienced firm with the required credentials, your association will be secure in the knowledge that your EEEs are safe for residents, guests and service personnel to use. We’ve seen competitors of advertising that they are “the cheapest inspection company”. From our perspective, that isn’t comforting at all, especially when you find out that the cheapest company is hiring “handymen” as contract labor to perform the inspection.
Reach out today for a quote on your SB 326 inspection needs. We give you a fast free quote that exceeds the requirements of SB326 by inspecting 100% of the EEEs, utilizing moisture meters, thermal imaging cameras and as needed, borescope cameras.
Don’t leave your Association legally exposed to lawsuits by ignoring your fiduciary duties. Call Bill Leys directly at 805-801-2380 to start your inspection. William Leys Waterproofing Consultants LLC has been setting the bar in performing SB326 inspections since 2022.
Balcony collapses in the Silver Lake area of Los Angeles CA. Fortunately only minor injuries.
I have questions.
Was this a condo or an apartment?
Was an SB326 or SB721 inspection done and what were the findings?
Who did the inspection if it was inspected?
If it wasn’t inspected, why not? SB326 required inspections to be done by January 1, 2025 and SB721 was extended a year until January 1, 2026.
Did a landlord/property manager delay the inspection if it was an apartment?
Did a board of directors delay an inspection despite the deadline?
All these questions need to be asked by ABC7 Los Angeles who reported this incident. ABC 7 please reach out to me and I will meet you on site today, Sunday Feb 16th to review the accident scene from the street. 805-801-2380 Bill Leys
Someone or someone’s will be getting sued.
We recently completed an SB 326 inspection for a client in Los Angeles where we discovered several concerning issues with their decks. The client had no idea that these problems existed, and appreciated that we recognized the severity of the issues, which resulted in our having to immediately close several balconies from being used. Even though the news wasn’t exactly what they wanted to hear, after reading our report they sent us an email saying in part;
“The HOA appreciates the detailed feedback you and Eric provided as a result of your inspection on September 19th.” Joe B Los Angeles CA
Our reporting strictly adheres to the requirements set by SB 326, in which an engineer or architect must perform the inspection themselves. We write a supplemental report related to the waterproofing, which is appended to our structural engineers report who is reporting on the structural components of the EEE’s.
One thing clients seem to like in particular is markups on the inspection photo’s we include in our report. It makes it easy for them to “see” the issues we see.
Time is running out for the inspection deadline date, but don’t worry, we can make your inspection happen before Jan 1 if you act now and call us at 805-801-2380 to get started with a free estimate on your inspection.
Is humor the best way to market our SB326 inspection services? Viral memes seem to resonate with people these days so it’s worth a shot.
If you need a SB326 inspection you need to vet your inspector thoroughly. Are they independent and free of conflicts of interest? Any inspection company that owns a waterproofing or contracting company is not free of conflicts of interest.
We’ve seen multiple clients coming to us with SB326 reports in hand that were written by contractors, signed off on by an engineer who didn’t actually inspect the EEEs and the report is written to favor the contractor who now uses that report to extort HOAs reserve funds.
At William Leys Waterproofing Consultants LLC we guarantee in writing that we have no conflicts of interest. We don’t own a waterproofing or contracting company, we hire a structural engineer who writes the report and we write a supplemental waterproofing report that is appended to the engineers report.
Call today, time is running out for getting your inspection done before the deadline. 805-801-2380 ask for Bill.
This past week I got my quarterly issue of Channels Of Communication from the Channel Islands Cheaper of CAI. I was very excited to see that Adrian Chang of Swedelson Gottlieb had written an article on SB 326.
The article references who can inspect association balconies and other EEEs under SB326. Attorney Chiang lays it out with this answer to his own question,
“Who inspects the EEEs and what to expect?“
“A licensed architect or civil or structural engineer* must perform the work.
LICENSED GENERAL CONTRACTORS are not authorized by this new law to perform the EEEs inspections to comply with Civil Code § 5551.”
This statement confirms our opinion that a contractor cannot perform the inspection. A contractor, in our opinion ( not a legal opinion) may accompany an engineer or architect and perform a waterproofing inspection and write a supplemental waterproofing condition report that is attached to the engineers report.
You can read the article here at Swedelson Gottlieb’s blog.
At William Leys Waterproofing Consultants LLC we work with an award winning structural engineering firm that performs the structural inspection and we write a supplemental waterproofing report on the waterproofing elements. Our report is appended to the engineers report which is sealed and signed by the engineer of record.
If your report is not done by an engineer or architect, in it likely does not meet SB326 requirements and you may be the victim of fraud. Inquire with your attorney.
Yes it’s true, we have a YouTube channel that we will be bringing educational content too.
Our first video discusses who can inspect EEEs under SB326, what warning signs to watch for when considering inspectors and why William Leys Waterproofing Consultants LLC is a great choice for your inspections.
Be sure to subscribe to our channel and comments are always welcome!
We compete against Dr Balcony around central and southern California. They are members of multiple CAI Chapters. Despte their low price offer, I know of at least 2x we won a job against them even though my company submitted a bid that was more than theirs.
Why? When I was able to give a presentation to a board of directors and explain how we operated, that we had a licensed structural engineer performing the inspections, that I did a supplemental waterproofing report that was attended to the engineers stamped and sealed report, that we inspected 100% of all the EEEs to ensure that nothing was overlooked, we were awarded the job. They saw my years of experience as a waterproofing contractor, that an engineer was personally on site doing the inspection, that our no conflicts of interest guarantee that we don’t bid on repairs, that we get competitive bids without obstructing the free market, that the 20% discount is a fraudulent attempt to subvert the market, where competitive bidding and a companies experience matter.
I have it on good authority from a client who had this company on site & when they saw who was inspecting the deck complained to their HOA, lo and behold an architect appeared and inspected their deck at that time. They did not know if the architect continued to inspect other decks or just theirs.
I am making inquiries to the Architectural Board & the Board of Engineers as to whether the engineer or architect has to actually be on site & perform the inspections or if they can allow an individual without any engineering or architectural qualifications to perform the inspection basically write the report & then they will put a cover letter on that says the report is accurate.
This offer of taking 20% off the lowest bid that the association received is just a bad sales tactic because they want to do the repairs, & that 20% off will be easily added back into the cost of the repairs because who is keeping them honest once they get the work?
Let’s math. Let’s say my company bid your inspection, with a guaranteed structural engineer, with a no conflicts of interest guarantee in writing as well, at 20k. For sake of a comparison, let’s say Dr Balcony had bid 21k.
So they daty hey, we will beat their price by 20% so their new price is now 16k. So what they just admitted to is that the value of their work is actually only sixteen thousand instead of the twenty one thousand they originally quoted you.
The question that comes to my mind is are they saying that they could have bid lower but they bid higher with hopes of overcharging you? Now that they know they overbid, suddenly they want to make it up to you? You weren’t born yesterday… And you realize that Dr Balcony has inherent conflicts of interest, and is attempting to limit your choices of contractors, you should realize that some companies are actively trying to scam you.
If a company says they can do it all in house without needing to go to outside contractors to get three bids then they are limiting your ability to receive the best bid for repairs, they are stifling market competition, and your HOA is likely to be greatly overcharged.
Let us explain to your HOA why an independent firm without conflicts of interest is your best choice when it comes to balcony inspections.
We will explain what non emergency repairs and emergency repairs are, and why some companies push non emergency repairs over to emergency status, to pressure you into signing with them immediately before you get a chance to look around and shop your options.
Reach out to me, Bill Leys directly at 805-801-2380 for a consultation on how we can help you.
My email to CAI-CLAC asking them to modify SB 326 to ban inspectors from bidding on repairs.
If you’ve experienced high pressure tactics, feel taken advantage of, that unnecessary work was done it you are being told needs to be done, let CLAC know by emailing them at lsrc@caiclac.com
Please see below
Good afternoon,
Here’s some documents from EMPIREWORKS, a vendor member of CAI who isliterally using SB 326 to steal from HOAs. They are considered among the the worst of the worst by my fellow inspectors and I who do not bid on repairs.
We’re being asked for second opinions by HOAs who are being told all their decks need to be replaced ( they don’t) at hugely inflated costs. These companies use pressure tactics, to threatening to report the HOA and that there’s huge penalties if they don’t comply.
Please call some of the inspection companies listed at Davis Stirling. These companies will tell you the same thing I’m telling you.
Please read some of the contracts; are they a company that you as counsel to an HOA client would advise the contract is ok to sign? Seeing these egregious clauses , which I’ve been told are unethical at best and illegal and unenforceable at worst, would you even advise a client to continue negotiating with or would you advise them to run?
This is what’s out here and what we’re dealing with on a near daily basis.
I’m sick to death of the people who will literally walk through the blood on that sidewalk in Berkeley to steal a dollar. The anniversary of Berkeley is coming up in June, and those victims must be remembered and their deaths not be in vain. That is why I am so vocal. Appreciate you listening.
Thank you,
Bill Leys President
William Leys Waterproofing Consultants LLC
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SB 326 Deck Inspections * Waterproofing Consultants * Construction Defect Investigations By Bill Leys The Deck Expert 