Obtaining Bids
When it’s best to go through the bidding process and best practices for doing so.
Associations don’t always need to obtain bids for smaller jobs. In fact, small jobs that cost only a few hundred dollars should not be put up for multiple bids. The process can be lengthy and some contractors wouldn’t spend their valuable time creating bids for minor jobs. It also delays the time it will take to complete a repair. But when that time comes, it’s best to ask for multiple bids
Bids are to be requested in writing, but that doesn’t mean they can’t be submitted through email or a vendor management system. The bidding process is ideal for extensive repair work or long-term services, including:
Landscaping
Pool maintenance
Re-roofing
Exterior painting
Bids help HOAs plan and budget. They also make it possible for communities to select the contractor who can complete the required work within the timeframe and contract specifications. Perhaps the board thought that repairing the pool would cost much less than what contractors are quoting. The board can use this information to readjust plans and budgets before any work starts.
Tips
Associations should evaluate all possible needs and costs before soliciting bids in order to attract the right company or person.
The more detailed information a bid can provide to prospects, the better.
Boards should establish a limited price range, when they need the work completed, the frequency of the service (if applicable), and the complexity of the repair.
It may be helpful to include photos or diagrams, depending on the nature of the project.
If creating bids is beyond the expertise of the board or manager, we recommend hiring someone who does have experience. It will save the association time and money in the long run.
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Note that, unless explicitly written in the HOA’s governing documents, there is no obligation to select the cheapest vendor.
While most associations will do this to save as much money as possible, boards and managers should also consider what they are getting for the money they are paying. Value is also important.
Does it make more sense to buy the cheapest product?
Or the one that will last the longest?
The answer will vary depending on the size of the association, the purpose of the product, and finances.
