I Bid You Good Day Bidding Out Service and Project Contracts

It’s only logical that if something goes wrong and needs fixing at a condo or HOA, it's the board or manager’s job to do some due diligence and choose the contractor that makes the most sense for the community's needs and budget.

This is usually done by gathering bids from several different vendors. After all, if you don’t compare the price and terms quoted to you by one vendor to those quoted to you by his or her competitors, how will you know if you’re getting a fair price, or being taken advantage of? Understanding how to navigate the bidding process—whether it's a manager doing it or the board itself, in the case of self-managed communities—is a crucial component of maintaining an HOA's overall financial health.

Managing Bids

“When a board decides that a project needs to be done, we will put together a request for proposal and will have the board approve it. Once they do, it means everyone is on the same page of what the project entails,” says Jonathan Louis, CEO of American Management Group, based in Pembroke Pines. “We have a preferred vendors list already made up of those we have worked with in the past, have a good track record and are fully licensed and insured.”

Anthony Rodriguez, managing partner with Florida Advanced Properties, Inc. in Miami says that while obtaining bids from a vendor for a project or ongoing service can be requested by either the board or the manager, it is usually done by the manager.

“All vendors are identified based on having pre-verified their license and insurance,” he says. “Furthermore, in some cases they are identified based on their reputation, if they've worked with the association and/or manager in the past.”

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Comments

  • Good Article! Very informative for board members who are elected to serve but had no previous career experience with purchasing processes. So how can you get a bid for emergency services? Disaster Restoration services all have a baseline for mitigation costs recognized by the insurance industry as "Fair and Reasonable" but any company worth their salt will offer a program with fixed and discounted cost for out of pocket expense by an Association. Create an RFP with an example emergency at the approx cost of your association deductible to see who will offer a competitive bid below the deductible amount.