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The following is an article about a church in North Carolina.
Their story demonstrates
WHY YOU SHOULD HIRE AN ARCHITECT.
The contractor claimed he could revise preliminary drawings (the drawings were incomplete and
were not suitable
for construction or code approval) and keep the project on
budget. Then, during construction, the contractor billed the church for
an additional
$1.27 million over the original $2.18 million contract amount.
That was a 58% increase in costs after the church signed a contract!
The church, being unfamiliar with the construction industry,
probably signed a contract that legally allowed these increases
without approval or oversight.
A GOOD ARCHITECT PROTECTS YOUR INTERESTS.
Our firm does a lot more than "draw up some blueprints."
We serve as your guide, counsel, and representative throughout the
design and construction process. The construction industry is
no less complex than the United States legal system, it has its own
jargon and inherent potential for deceit and unethical costs.
Don't go to court without a lawyer, and don't build without an
architect.
Contact Talley & Smith Architecture to learn more about how we can
help you get the most for your money.
Constructing a building is a
complex process. Even under the best circumstances, there will
be problems. Working with a good architect is key to
protecting your interests and getting the most for your money.
The best contractors value and appreciate the role of a qualified
architect.
The following article illustrates a project without an architect,
where the owner was not well-informed, and the contractor operated
with no oversight and failed to communicate. Biblical Recorder, Journal of the
Baptist State Convention of North Carolina, April 14, 2007, Volume
173 Number 8.
Mountain Grove Church files for bankruptcy
BR staff report
Mountain Grove Baptist Church in Granite Falls, after two years of
litigation over nonpayment for construction of a new facility,
recently filed Chapter 11 bankruptcy in order to protect its assets
from seizure while awaiting results of an appeal.
Pastor Clifton Black
White Fox Construction Co. Inc., based in Lenoir and now out of
business, filed suit in January 2004 against the church for the
amount due, plus interest and attorney fees totaling $1.9 million.
In 1994, Mountain Grove hired David Gray, the owner of White Fox
Construction, after seeking bids from other construction firms for a
2,000-seat sanctuary and gymnasium. The church chose the company
because Gray said he was an engineer and could revise preliminary
blueprints to get within the church's budget, said Clifton Black,
the church's pastor.
In March 1996, Black signed a proposal for $2.18 million for a
church building, thinking it also included a gymnasium. "After
construction started, we noticed no work was going on for the
gymnasium," said Black, "and we asked why." Gray said the gymnasium
was not included in the proposal, Black said. Church members agreed
to pay an additional $400,000 for the gymnasium, and approved a
change order.
Black said a representative from Nation's Bank (now Bank of
America), which was handling the loan, told him that Mountain Grove
had reached its credit limit and could have no additional change
orders. Gray, however, wrote up and performed additional change
orders at a cost of $865,835, said Black. Gray reportedly said they
were required structural changes due to changes in building codes.
The church paid the agreed amount, but refused to pay the additional
costs, Black said. Gray stopped construction at the facility, but
Mountain Grove hired the subcontractors back and paid them to finish
the work, said Black.
Mountain Grove occupied the building in July 2000.
In 2003, the North Carolina State Board of Registration for
Professional Engineers and Land Surveyors revoked Gray's license for
practicing engineering during a period of suspension of his license,
according to the Hickory Daily Record. His license was suspended in
1998 and again in 2002.
In June 2006, a Superior Court judge ordered Mountain Grove to pay
$300,000 in addition to the balance due and interest. The church
filed for dismissal - a motion to amend the judgment - in December,
but it failed. It is still on appeal, and Black said he does not
know when the case will be heard.
Gray, who is a deacon at First Baptist Church in Lenoir, told the
Daily Record that the lawsuit stands on its merits.
"A judge determines a percentage of what is right," he said. "It's
pretty unusual to determine that 100 percent of the claims are
accurate. What else can you say?"
Gray told the newspaper that he and the church hope to resolve the
suit amicably.
"I hope they don't lose the church," he said. "I don't want that to
happen. We're working on some negotiations and trying to work out
some settlement."
The church filed Chapter 11 bankruptcy in order to protect its
assets from seizure, not because it is having financial
difficulties, said Black.
A
$2.1 million balance on the building loan is the church's only debt,
he said, The loan is now with Branch Banking and Trust Company
(BB&T).
Despite the litigation, "The church is doing awesome," Black said.
"Baptisms are up - attendance is up - the people are together. We're
just riding this thing through."
Construction issues aren't the only obstacles the church has had to
face, however. In 2005, Black said he had to let four staff members
go when furniture factories closed or laid off people, but finances
have stabilized since. Current membership is about 3,800, worship
attendance is 1,000-1,200 and last year's income was just over $1
million, he said. According to the church's profile reported to the
Baptist State Convention in 2003, the total membership was 4,208,
worship attendance averaged 1,048, and undesignated gifts were $1.34
million. The church has not updated its profile since 2003.
End of Article
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