Page 11 - New England Condominium August 2019

NEWENGLANDCONDO.COM NEW ENGLAND CONDOMINIUM -AUGUST 2019 11 clientsvc@jbutlerpropertymgmt.com | P: 978-694-9004 F: 978-694-9008 | www.jbutlerpropertymgmt.com COMPANY OVERVIEW • Family owned and managed Massachusetts based property management company • Offers superior construction-related expertise and resources • Blends management expertise with open communication between the board, unit owners and managing agent, making for a healthier property • Superior vendor and cost management • Deployment of in-house maintenance and grounds-keeping crews At J. Butler Property Management, LLC, we measure our success in terms of client satisfaction and take a long-term view of every relationship. A Company you can trust... A Company you can depend on... A Company of Professionals!!! An Unparalleled Level of Condominium Service enly received a quote that was meant for ‘the job gets done well, and somebody providing kickbacks, the field is narrowed avoid conflicts of interest, boards are also a board president, and which included a lines their pockets.’ The cost usually ends and competition is stalled, which also now required to sign a form, which states promise of profit. The individual was im- mediately removed from the board, and residents, who were unaware that any- no work was done with that company. But thing shady was ever happening. it’s a very tricky field, as there are so many different people involved in these projects lead to conse- and decisions.” The penalties associated with being caught engaging in a kickback scheme den,” says Mark can be steep. “Managers could lose their B. licenses, and directors or officers could be subject to litigation for doing so,” says Gregory W. McCracken, a partner at the agement law firm of Jacobs, Walker, Rice & Barry in Manchester, Connecticut. “Statutes covering community association manag- ers prohibit any act or conduct that con- stitutes dishonest, fraudulent or improper cause of their dealings. Directors and officers must nature in pro- similarly act in good faith in a way they viding money to reasonably believe to be in the best inter- ests of the association. Kickbacks would than a contrac- clearly run afoul of these requirements.” Paying the Cost The consequences of accepting a kick- back or bribe are rarely as convenient as only willing to work with vendors who are up being shouldered by the community’s leads to higher pricing and a non-com- “Kickbacks have a few issues that can as well as future expenses and problems quences both clear and hid- Levine, a principal with property man- firm EBMG, LLC, which has of- fices in the New York area. “Be- someone other tor for services rendered, the price for those services will be driven up to cover the extra expense. In addition, if you’re petitive marketplace. This can lead to an compensation for any work done at their inferior company performing the service, building.” down the line.” Combat and Consequences Fortunately, there are ways that ethical resi- dents, board members, and managers at a residential property can work to ensure that their com- munity remains kickback-free. “I do my best to look for signs that something doesn’t seem right, and always use out- side companies that are not associated with the board or anyone else involved with the building,” says Buttafucco. “To that they will not receive any monies or “To reduce the chance of influence from either a contractor or the board members and managers themselves, transparency should be sought during a bidding process for large capital projects,” adds Reilly. “Sealed submissions of bids are recommended, and having bid open- ings with multiple witnesses is encour- aged. Similarly, vendors should not be told what number to come in at to get a job.” When hiring contractors, a board or manager can do their due diligence by making it known that not only will they not solicit kickbacks, but they’ll be vigilant against even the perception of sketchiness. “Decades ago when I first started working, we were on a job, and I was with Glenn Kuffel, the owner of the company at the time,” recalls Alex Kuffel, President “Directors and officers must similarly act in good faith in a way they reasonably believe to be in the best interests of the association. Kickbacks would clearly run afoul of these requirements.” — Gregory McCracken continued on page 13