Vendor Bids - Keeping It Fair & Honest

Started by DonaldN • 3 replies • 1385 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

DonaldN (Connecticut)
Posts: 183

Posted:

I am one of 5 on our Board - we have a new management company with their own vendors and other contacts that they have experience with - another member of our Board also has contacts and we, as a Board, try to evaluate vendors and bids objectively.

But now here's our dilemma - whether the bids get submitted to our PM or this Board member there's always a possibility of collusion/favoritism/bid rigging between either the PM and her vendors or this Board member and his vendors.

I'd like to hear if others on the forum are (1)in a similar situation and how they handle it ? or (2) given the situation how would they handle it ?

thanks for any advise and/or feedback .

MaryA1 (Arizona)
Posts: 388

Posted:

Donald,

IMO, the board should find out if there is a conflict of interest between the PM and her vendors or the board member and his vendors, meaning do they stand to benefit monetarily if the board chooses the company they've offered a bid from. If so, then I would not accept bids from those companies; if not then there is no problem and each bid can be considered based upon the merits of the bid.

RogerB (Colorado)
Posts: 5,067

Posted:

Donald, the Board should ask for sealed bids which are not opened until such time as the Board meets to make the decision on selection of contractor.

RyanD1 (California)
Posts: 38

Posted:

I highly recommend that all Boards have the management company collect three bids. In addition, when starting with a new management company the Board should get 1-2 extra bids to make sure that the property management company can get competitive or preferred pricing for the association. I have heard several disaster stories where associations have received their own bids on projects and received pricing 20-30% cheaper than the management company!

Also, look them up on the better business bureau, angies list, or check their license on the state site for complaints.

Lastly, when choosing amongst bids, I always recommend going with the middle bid. I believe that most of the time you will receive higher quality workmanship.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here