On Wednesday and Thursday of this week representatives from Lexington including the adjuster that represented Essex conducted an onsite property evaluation. The Lexington adjuster introduced the new consulting contractor that would represent Lexington's interest. Lexington outlined their standard operating procedures that would include evaluation of damage, audit of all contracts and invoicing and the review of all proposed reconstruction costs. Lexington does not issue further funding disbursements until all these items are completed which by their schedule is March 2009.
The Associations provided Cotton bid documents for the rebuild of the envelope and interior wind damage areas of the buildings. The Lexington contractor had reviewed prior to meeting and questioned various items during walk of various condos. Among the items questioned were moving of contents, interior and exterior painting specifications and insulation replacement.
Lexington's standard auditing process is scheduled to start within a week and finalized in late February. An outside auditing firm will be contracted by Lexington to review unit prices paid to date and the contract scopes. The completion of the auditing process and the approval of the reconstruction scope will determine the timeline for the funding disbursement from Lexington.
This translates to a slow down in the reconstruction of the condominiums. The funds that have been obtained from condo owner assessments and the first insurance layer are contractually committed for tear out operations, electrical system, fire suppression, fire alarm and roof replacement. There are currently no additional funds to commit to any other reconstruction contracts.
The Associations have attempted to demonstrate the need for additional funding to Lexington by providing costs to date and the anticipated wind damage reconstruction costs. The Associations are facilitating Lexington where ever possible to expedite the current funding schedule. The Associations continue to provide information to the SBA program in order to potentially obtain interim construction funding.
In consideration of the most recent constraint the Associations have compiled a listing of all condo owners that have paid their first assessment. The listing will be used to establish a priority reconstruction schedule, as construction funds become available the Associations will attempt to serve these owners while maximizing the number of buildings open for homeowner use.
