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BIDDING ON SERVICES FOR COMMUNITY ASSOCIATIONS
April 1, 2000
Bidding on products and services for Community Associations
is one of the most important aspects of a Board Members
official duties. In some instances, there are state laws
governing this practice (Chapters 718 and 719, Condominiums
and Cooperatives) that should be adhered to. There are
even some documents, which spell out bidding and contract
procedures that need to be followed by the Board of
Directors.
In most instances there are sound business practices and
common sense to follow while bidding on services. These
practices will be reviewed in this article.
First, the Board needs to define and determine the work
that needs to be done. This should be in the form of a
written document, which would act as a set of
specifications for future bidders. If a Board does not
have the technical background to write a set of
specifications, then the Board may want to consider hiring
a consultant to define the project and to help write the
specifications. This would make sense for reconstruction
projects, roofing and jobs that would require an engineer
or technical expert.
A contractor trained in the performance of various
materials will have the knowledge help the Board of
Directors select materials best suited for the job. Make
sure you receive written specifications on materials to be
used on your job. If a technical expert is to be used,
they should help you with this.
Consider having a pre-bid conference with your contractors
in order to lessen any misunderstandings on the scope of
work. At that time, the contractors will meet with the
Board or the person in charge to review the job and answer
any questions. This helps to make the bidding process more
accurate.
Always inquire as to the type and kind of equipment that
the contractor is going to use. A contractor with the
right type of equipment and a trained and efficient crew
can provide you with a superior job. Always make sure that
the contractor is using his own employees and not
sub-contracting the job out.
Get a minimum of three competitive written bids from
similar sized companies. Prior to asking a company to
bid, we suggest prequalifying all companies prior to
bidding. This will help to determine whether a company has
the expertise and resources to properly complete your job.
Always ask to see their local and state contractors
licenses, make sure that they are still in force and that
all local and regional building codes will be followed.
Permits should be drawn, as building inspectors will be
following the job and ensuring that building codes are
being met.
The same holds true for their insurance. Make sure that
they have current certificates of both liability and
workmen's compensation insurance in effect, with the
Association being designated as an additional named
insured.
Always ask for current and past references and check them.
Go see the work as well, to see if the quality is up to the
Association's standards.
Always have a written contract. If there is something that
you do not understand have an expert help you. If it is of
a legal nature, have an attorney review it. Always spell
out the schedule of payment and at what stage of completion
they will follow. Be wary of contractors who need money in
advance!
Find out when the job should be started and when it should
be completed. Make those items a part of the contract in
order to ensure timely completion.
Never advance any payments to a contractor prior to work
being done for the Association.
Use these steps in order to ensure competitive bids and
professional results in all of your future service and
product contracts
Copyright 2007© Associated Property Management of the Palm Beaches, Inc.
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