How to Address HOA Bids for Contract Work
There are good reasons for homeowners associations to obtain multiple bids for contract work. Proposals help the association create a budget for long-range planning and ensure that the board selects the best contractor to complete the required work within the timeframe and contract specifications. Some boards believe they need three bids for every contract, no matter how small or undefined the work's scope. That's not always the right thing to do.
Bid Requirements
Requiring three bids for every service or repair can put a property in an undesirable position in the marketplace. For one, preparing bids comes at an expense to the contractor. It also leads to more time spent by board members and the community manager reviewing proposals, which slows down making repairs.
An association should evaluate all possible repair and maintenance needs before soliciting bids. It should also establish a specific price range, length of the contract, frequency of the service, or complexity of a repair to determine how many requests it needs. If writing these bid specifications is beyond the board or community manager's expertise, it is best to hire a professional to do it.
Expert Contractors
While managers are good at what they do, they are not experts in all fields, and taking the risk and burden of preparing a work scope is unnecessary. A contractor, architect, engineer, or builder may be better able to help determine the work scope.
Contractors typically do not justify the expense of preparing a request for low-dollar jobs. Therefore, multiple bids are unnecessary for low-bid jobs. Extensive repair work or long-term services require numerous bids. These types of jobs include, but not limited to:
Exterior painting
Landscaping
Pest control
Pool maintenance
Re-roofing
Road and sidewalk repairs
However, keep in mind that associations do not need contracts for all of their services and repairs. Once you've determined when your community will solicit bids, you'll want to be sure your specifications are detailed. Doing so will ensure you can be fair to all bidders and that you'll obtain the best job at the best price.
The following are tips to help you successfully work with a contractor:
■ Weigh the pros and cons of spreading total work costs over 12 months.
■ Consider completing specific jobs in the offseason to save money.
■ Communicate closely with the contractor about all contract services.
■ Don't expect to get more than what is in the contract and specification sheet.
■ Direct complaints through proper channels.
■ Contact the contractor if an employee does not complete the job correctly.
■ Consult with an insurance agent to determine association and contractor insurance needs.
Contact Us
Need help with bids? Don't hesitate to contact your manager or Condominium Associates directly. We want to make sure you get the most reasonable rate for the various projects you have in your HOA.