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From: http://dictionary.law.com
fiduciary
1) n. from the Latin fiducia, meaning "trust," a person (or a business like a bank or stock brokerage) who has the power and obligation to act for another (often called the beneficiary) under circumstances which require total trust, good faith and honesty. The most common is a trustee of a trust, but fiduciaries can include business advisers, attorneys, guardians, administrators of estates, real estate agents, bankers, stockbrokers, title companies or anyone who undertakes to assist someone who places complete confidence and trust in that person or company. Characteristically, the fiduciary has greater knowledge and expertise about the matters being handled. A fiduciary is held to a standard of conduct and trust above that of a stranger or of a casual business person. He/she/it must avoid "self-dealing" or "conflicts of interests" in which the potential benefit to the fiduciary is in conflict with what is best for the person who trusts him/her/it. For example, a stockbroker must consider the best investment for the client and not buy or sell on the basis of what brings him/her the highest commission. While a fiduciary and the beneficiary may join together in a business venture or a purchase of property, the best interest of the beneficiary must be primary, and absolute candor is required of the fiduciary. 2) adj. defining a situation or relationship in which a person is acting as a fiduciary for another.
I often work as a construction manager, on a percentage basis. I have an obligation to put the customer's best interests ahead of my best interests.
During the busiest times of the year, on an almost daily basis, I see examples of subcontractors who have not acted in their customers best interests. Compared to a construction manager what is their liability?
As an example, two days ago I met with a customer to discuss replacing a section of foundation, that had settled over 3". They just had new vinyl siding and replacement windows installed. The contractor who installed them was aware that the section of foundation would be replaced, and the house would be leveled up in the near future, but went ahead with the job anyway. Now, when the house is leveled up, the siding will be 3" out of level, and the new windows will be out of level and out of square. The siding installer should have held off on his installation until the house was leveled up.
If the siding installer did this out of greed, trying to get the customer's money before the customer changed his mind, how liable is the siding installer?
If the siding installer did this out of ignorance, not realizing the vital role that the General Contractor/Construction Manager plays in preventing these kinds of stupid mistakes, how liable is the siding installer?
A lot of subs try to avoid working with construction managers, and general contractors, and try to work directly with the home owner. Over the years, I have come to understand why.
What course of action should I recommend to my customers to recover damages from these greedy and incompetent contractors?
fiduciary
1) n. from the Latin fiducia, meaning "trust," a person (or a business like a bank or stock brokerage) who has the power and obligation to act for another (often called the beneficiary) under circumstances which require total trust, good faith and honesty. The most common is a trustee of a trust, but fiduciaries can include business advisers, attorneys, guardians, administrators of estates, real estate agents, bankers, stockbrokers, title companies or anyone who undertakes to assist someone who places complete confidence and trust in that person or company. Characteristically, the fiduciary has greater knowledge and expertise about the matters being handled. A fiduciary is held to a standard of conduct and trust above that of a stranger or of a casual business person. He/she/it must avoid "self-dealing" or "conflicts of interests" in which the potential benefit to the fiduciary is in conflict with what is best for the person who trusts him/her/it. For example, a stockbroker must consider the best investment for the client and not buy or sell on the basis of what brings him/her the highest commission. While a fiduciary and the beneficiary may join together in a business venture or a purchase of property, the best interest of the beneficiary must be primary, and absolute candor is required of the fiduciary. 2) adj. defining a situation or relationship in which a person is acting as a fiduciary for another.
I often work as a construction manager, on a percentage basis. I have an obligation to put the customer's best interests ahead of my best interests.
During the busiest times of the year, on an almost daily basis, I see examples of subcontractors who have not acted in their customers best interests. Compared to a construction manager what is their liability?
As an example, two days ago I met with a customer to discuss replacing a section of foundation, that had settled over 3". They just had new vinyl siding and replacement windows installed. The contractor who installed them was aware that the section of foundation would be replaced, and the house would be leveled up in the near future, but went ahead with the job anyway. Now, when the house is leveled up, the siding will be 3" out of level, and the new windows will be out of level and out of square. The siding installer should have held off on his installation until the house was leveled up.
If the siding installer did this out of greed, trying to get the customer's money before the customer changed his mind, how liable is the siding installer?
If the siding installer did this out of ignorance, not realizing the vital role that the General Contractor/Construction Manager plays in preventing these kinds of stupid mistakes, how liable is the siding installer?
A lot of subs try to avoid working with construction managers, and general contractors, and try to work directly with the home owner. Over the years, I have come to understand why.
What course of action should I recommend to my customers to recover damages from these greedy and incompetent contractors?