This post is the second of a three part series. Part III will cover Legal Contract Advice and is due for publication the third week of February,2010.

This is a guest post by Andrea Goldman, the principal in the Law Office of Andrea Goldman 305 Walnut Street, Newton, Massachusetts 02460. She is a litigator, mediator and arbitrator. Ms. Goldman focuses on construction, contractor/homeowner and business law. She is fluent in Spanish and French and has served international clients in their native language. For more information about Andrea Goldman visit www.andreagoldmanlaw.com or call (617) 467-3072.

Click here to read Part-I of this series - Green Housing Legal Advice: The Basics

Potential areas for risk include the following:

• Certification
• Rebates and tax incentives
• Green materials and supplies
• Installation
• Warranties
• Performance

Certification

Contractors and homeowners need to discuss certification options. They should consider using a design team to maximize cost savings and think about whether it is worth pursuing a level of certification. Both should be aware of the possibility of an increased financial burden. Contractors and homeowners will want to familiarize themselves with local and state laws that may affect certification (zoning, conservation commission). Homeowners should be made aware of the changing nature of certification (requirements are fluid) by contractors, and most importantly, the potential for the need to renew certification after a certain number of years.

Rebates and Tax Incentives

Familiarize yourself with the requirements for rebates and tax incentives. Designate responsibility for the acquisition of rebates in the contract. Contractors would want homeowners to assume responsibility for the rebates, and vice-versa.

Green materials and supplies

Beware of “greenwashing” and the potential for fraud. Educate yourself about alternatives in green products and systems. Clearly spell out in the contract who has chosen the green options and who is responsible for them. Make sure to ask for all manufacturers’ warranties. Find out about implied warranties in your state.

Warranties

Clearly delineate warranties for materials, installation and performance. Allocate risk between the contractor and the homeowner. Again, be aware of implied warranties in your state.

Performance

Homeowners should ask for guarantees in the contract, and contractors should avoid giving guarantees that cannot be implemented. Allocate risk amongst builders, subcontractors, suppliers and owners. Account for regional variations in performance. Make sure warranties are included. Discuss and delineate maintenance responsibilities in the contract.

Suppliers

Only choose reputable suppliers. Make sure you acquire all necessary documentation for installation, warranties and rebates. Include disclaimers for materials chosen by consumers. Ensure that proper installation procedures are followed, or the manufacturer’s warranty could be invalidated.

Resources :

1. NAHB-National Green Building Program http://www.nahbgreen.org/
2. LEED for Homes http://www.usgbc.org/DisplayPage.aspx?CMSPageID=147
3. ANSI Green Building Standard http://www.nahbgreen.org/Guidelines/ansistandard.aspx
4. ASHRAE Green Building Standard http://www.ashrae.org/pressroom/detail/16309
5. Green Real Estate Law Journal http://www.greenrealestatelaw.com/
6. Green Building Law Update http://www.greenbuildinglawupdate.com/
7. Green Building Law http://www.greenbuildinglawblog.com/

Part III of this series, Green Housing Legal Advice: Contracts will be published next week.