Obtaining multiple bids for contract work gives HOAs significant advantages. For instance, bids can come in handy when making a budget for long-range planning. In addition, bids ensure that the board chooses the best contractor who can complete the required work within the contract specifications and on time.
The challenge now borders on how many bids your HOA should get for contract work.
Are Three Bids for Every Contract Enough?
Boards and HOA project managers seemingly agree that three bids for every contract are enough, even if the contract is small or even when the scope of work is undefined. However, it now emerges that this isn’t always the right thing to do.
If your board decides to settle for three bids for every repair or service, your property might be put in an undesirable position in the marketplace. For instance, preparing bids for the contractor is quite an expense. It also takes board members and the community manager a significant amount of time to review bids, which eats up the time needed to complete the repairs.
Even though three is considered the magic number, it is safe to understand that this number should not be made mandatory as bids should vary drastically depending on the complexity and the scope of the project.
If the repair project is large, it should enjoy a wider competitive bidding process. Smaller projects or routine repairs should not be subjected to multiple bids. Still, you must review your governing documents to ensure that you are familiar with all the required terms for soliciting bids.
Other Factors to Consider When Determining How Many Bids to Solicit
Several other factors should be considered when determining how many bids your HOA should solicit for projects. Some of these factors include:
Your Relationships With Previous Contractors
More often than not, your association has had associations with past contractors. If these relationships were positive and these previous contractors were reliable, you may choose to work with them on new projects without seeking multiple bids. Still, it is up to the board to ensure that the bidding process is fair and transparent.
Consider Both Reputation and Quality
Before you can decide on how many bids your HOA should get for contract work, you should do a little research. From that research, you can learn a lot about contractors who are highly recommended. These are contractors with a good reputation and are known for the quality of their work within the community.
Do You Need Help With Any of Your Association Management Needs?
Association management experiences ever-changing needs, and it might be hard for a manager to keep up. If you need a community association contractor in Georgia, contact Avid Contractors for full-service help with your management needs.
