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ShawnaT (Maryland)
Posts: 20
Posted:
My HOA needs to have some trees cut down in our neighborhood and we have a guy that works for a tree company on the board that has a buddy that will cut down the trees and remove them, etc for $900. I (the president) asked for a written estimate and asked that he get the board 2 additional written estimates so that we could do our due diligence with spending the money. Now, to me, this sounds reasonable, but now I am getting backlash about the decision. Is it not professional protocol to secure 3 written estimates for work that needs to be done, and if not professional, at least common sense?
JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Shawna:

It would be in everyone’s best interest to get at least three estimates. That way when the individual known to a board member potentially is the lowest (as he has already given quote) and there would be no knowledge by him of other quoted prices. Then everything will have been done above board with no one able to say there was any potential conflict of interest.

JonD1
Posts: 2,350
Posted:
Quote:
Posted By ShawnaT on 02/23/2011 9:31 AM
My HOA needs to have some trees cut down in our neighborhood and we have a guy that works for a tree company on the board that has a buddy that will cut down the trees and remove them, etc for $900. I (the president) asked for a written estimate and asked that he get the board 2 additional written estimates so that we could do our due diligence with spending the money. Now, to me, this sounds reasonable, but now I am getting backlash about the decision. Is it not professional protocol to secure 3 written estimates for work that needs to be done, and if not professional, at least common sense?

Shawna:

Who did you ask to get two other bids? The guy on the Board who got you a price already? Why would that be their job? IF you are of the position that 3 bids need to be obtained why not get two for yourself?

As for the written bid you certainly could ask for one but you could also direct no payment more than $900 will be made for this work.

Just seems to slow the entire process.

This way you can compare the prices yourself and not suspect any role of the other Board member in the pricing.

Who is givng you backlash? Are they reasonable people and perhaps for a $900 bill you are making lots of work? Do you beleive the $900 price is out of line? How many tress how big? Do you have any idea of the cost of tree work?

The lowest bid is sometimes not the best bid.

As to professional protocol in many cases 3 bids should be found. But in some cases if you have a contractor who does work on the property of one sort or another I would suggest in order to move things along perhaps you rely on someone who knows something about the business if in the past their price and work has been satisfactory.

If you have a member of the Board who does work, you value their opinions and information they provide sort of sends a messsage that you don't really apppreciate their efforts in resolving an issue easily and quickly at a fair price.

IMO not every job needs to be sent out to bid. But I am sure some folks follow this procedure.

So get more bids and see where this leads you.
BarbaraB10 (California)
Posts: 117
Posted:
I commend you for wanting to do the right thing. Three written estimates seems very reasonable, prudent and responsible to me. It is something many homeowners do before having work done on their own property. Conflict of interest (ethics) comes to mind but there are other factors (liability) to consider as well before hiring.

You can check the Maryland State contractor's licensing bureau to find out if a contractor's license is required to perform work at $900. For instance, in California, contractors are required to be licensed in the category they work in IF the work goes higher than $500.

You will want to verify the license - active/inactive, for the category/type of work they are licensed to perform, investigate any disciplinary actions and verify that the tree trimmer has adequate insurance & worker's compensation.

If you discover that the contractor is unlicensed and uninsured, it is my humble opinion that he should not be hired to perform the work. There could be HOA liability if he's hired and is subsequently injured on HOA property.



ShawnaT (Maryland)
Posts: 20
Posted:
The trees have needed attention for quite sometime, (even prior to the current board) and the guy that secured the current bid from his buddy is on the Facilities Committee (which is responsible for upkeeping the park). Yes, he is in the tree business, however he is reluctant to provide a written estimate of the work being done, and just because someone works in the tree business I would venture to guess that they would indeed need to be insured to do the work as an independent contractor as these are sizeable trees and not done properly could cause major damage to community or adjoining properties. Might I add that this gentlemanis on the board and he got the permits almost a year ago...only now are they rushing to get the job done, which raises red flags to me, because originally, he said this guy would charge us $500. Yes,I can see how he might get his feelings/ego hurt over a request for more than one quote but when you are spending someone elses money, isn't it good practice to do so carefully and proceed with caution even if it takes an extra week or two? (considering they have already waited nearly a year?) I agree that the lowest isn't always the best, which is why I want additional estimates/bids.
ShawnaT (Maryland)
Posts: 20
Posted:
Barbara, thank you, doing the "right" thing is certainly not the popular thing to do! Especially if it doesn't fit other people's agendas.

Quote:
Posted By ShawnaT on 02/23/2011 11:18 AM
The trees have needed attention for quite sometime, (even prior to the current board) and the guy that secured the current bid from his buddy is on the Facilities Committee (which is responsible for upkeeping the park). Yes, he is in the tree business, however he is reluctant to provide a written estimate of the work being done, and just because someone works in the tree business I would venture to guess that they would indeed need to be insured to do the work as an independent contractor as these are sizeable trees and not done properly could cause major damage to community or adjoining properties. Might I add that this gentlemanis on the board and he got the permits almost a year ago...only now are they rushing to get the job done, which raises red flags to me, because originally, he said this guy would charge us $500. Yes,I can see how he might get his feelings/ego hurt over a request for more than one quote but when you are spending someone elses money, isn't it good practice to do so carefully and proceed with caution even if it takes an extra week or two? (considering they have already waited nearly a year?) I agree that the lowest isn't always the best, which is why I want additional estimates/bids.

JanetB2 (Colorado)
Posts: 4,219
Posted:
Hi Shawna:

As Barbara stated I would still make sure he is licensed and insured. Even though he is in the "tree business" does not necessarily mean he is carrying proper insurance coverage. I would get copies of this information before starting any work from any contractor. It is easier to have this info up front than to try to get after something happens.

LynetteB (Texas)
Posts: 141
Posted:
Shawna,
I agree that 3 written bids is the standard.
I have to ask if when the one bid was presented a year ago, was it approved to proceed with that job by the then current board? If this was a job which was already approved a while back then I might be inclined to let it pass and make sure their is a policy for all future jobs to go through a 3 bid process and presented to the board for approval with the job to occur within a limited amount of time or it would need to come back before the board. The board should work within the current years budget or through designated reserves which is partly why there is a board.
Written bids are important. Makes it easier to compare apples to apples and keeps contractors from increasing the cost.
If you have a policy in place for how things like this are handled, you likely won't get any future backlash when you make the request.
JonD1
Posts: 2,350
Posted:
Quote:
Posted By ShawnaT on 02/23/2011 11:18 AM
The trees have needed attention for quite sometime, (even prior to the current board) and the guy that secured the current bid from his buddy is on the Facilities Committee (which is responsible for upkeeping the park). Yes, he is in the tree business, however he is reluctant to provide a written estimate of the work being done, and just because someone works in the tree business I would venture to guess that they would indeed need to be insured to do the work as an independent contractor as these are sizeable trees and not done properly could cause major damage to community or adjoining properties. Might I add that this gentlemanis on the board and he got the permits almost a year ago...only now are they rushing to get the job done, which raises red flags to me, because originally, he said this guy would charge us $500. Yes,I can see how he might get his feelings/ego hurt over a request for more than one quote but when you are spending someone elses money, isn't it good practice to do so carefully and proceed with caution even if it takes an extra week or two? (considering they have already waited nearly a year?) I agree that the lowest isn't always the best, which is why I want additional estimates/bids.

Shawna:

Just to review, this work has now waited for more than one year and still not done. To remove a few trees no matter what the size or situation should not require one year.

So you have a member of the Board who is serving on the Facilities Committee have you served with him long? What is your working relationship like? Do you have faith in his opinions? Has he acted improperly in the past?

I would agree ANY work done should require the contractor to have insurance. I would have thought that was a given. We use several contractors regularly and have an understanding they are in this business and carry insurance, cuts down on doing all this research for every single project.

When you say sizable what are we talking about 20' 50' or 150' in height?
Do you have any knowledge of tree work or the costs of this type of work? Single tree of average size should run about ????? amount of dollars? Have you had tree work done before on the property to compare pricing?

FYI many contractors who give an estimate will honor that pricing for one month before that price might increase. Here you have 12 months or more for which I would expect some increase. IMO not surprising. Do you really think any service provider would hold a price for 12 months?

Shawna in order to get other bids you need to find contractors, you need to meet them on YOUR time and show them the work that needs to be done, you need to have knowledge of the scope of work you are discussing, which tress are to be taken down, stumps removed or ground down?, you need to have the authority to decide what should be done and what will be required, and in this case you need to do this two times. Plus to need to verify insurance coverage, licenses and if required permits. Are you in the position to do this?

Do you have a managment company??? My guess you do not.

While when spending someone else's money it is good procedure to go slowly and carefully this type of handling makes rather simple jobs far more complicated than they need be. And in some cases when people who have little knowledge or expierence in awarding what would seem to be a rathe simple $900 project that has now taken over one year IMO something ain't working right.

PLus the delay has possibly cost the property $400 more.

Over the past 7 years we have spent more than $400,000 on various projects with various price tags NONE has taken more than one year to arrange.

And it would seem yours will be taking a few more weeks.

Just curious who are the folks givng you backlash? And why? Have you served on the Board long? As President long? With all due respect seems you are giving this all way to much of your time and the time of those also serving.

But if you feel justified than seek out two other tree guys, meet with them, explain what you want done, be able to answer their questions and see what prices you get. And then be prepared to follow that script each and every time you do work in the future.

Good luck

MelissaP1 (Alabama)
Posts: 13,836
Posted:
We actually established this as a "Rule" that any time we had a need for a bid above $100 we get 3 bids. It didn't matter IF we already knew who we were going to hire or not. It was understood that any board member or member could submit a bid for the job to be completed. If they knew someone who wanted the job or could do the job themselves we would ONLY give them a chance if they BID. No written bid then no job for them...

Former HOA President
ShawnaT (Maryland)
Posts: 20
Posted:
Jon
I work with a group of people that are on the board simply because they can say they are "on the board". I also work with people that are not on the board but were previously that are working on the facilities because he has the time and desire to work on facilities.
There are a lot of layers to our board, some conspiracy theories, etc. So honestly day to day, I have no idea who I can or cannot trust with the exception of one or two here and there. I have been the president for just under a year and a half, I was voted in originally as the best choice after the previous president resigned and was voted back in for another term.
To clear things up, the gentleman that got the permits did so last March. Why it has taken so long is beyond me. Though, everything in this organization is "talked about" and rarely acted upon...Case and point, my neighbors 9 year old son died three years ago. She was told by the old board that they would put up a bench in the community park in his honor. It wasn't unitl I came in Fall '09 that it got taken care of. When I went through minutes from meetings past it had been brought up SEVERAL times and that was it. I have spent the last year or so trying to clean up all loose ends and get the board running professionally.
As for the "bid" orginally, the facilities committee was going to cut down the trees, then it went to "I have a buddy who will do it for $500" and that went to $900 yesterday...I am cautious because he wants it presented to the board with nothing in writing, not even a name of who this person is...I had one tree cut down in my yard for $600, so I understand that is a good deal; however, it seems too good a deal, and there are people in this neighborhood that will inevitably question whether or not we appropriated the funds in the proper way, and with nothing in writing and no additional estimates...just doesn't seem right.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Don't forget this: ONLY HIRE CONTRACTORS THAT ARE BONDED AND INSURED!!! Especially IF your removing trees. We hired a professional company with the best reputation and they did some real damage. We had broken phone, cable, and underground electrical lines cut. We didn't have to pay a thing additional because their insurance covered the damage. Keep in mind they did an EXCELLENT job but damage can't be avoided.

I made sure whoever the contractor was that they had a business license, bonded/insured, and permitted to work in our county/city. This is EXTREMELY important besides costs. It's best to pay additional money to a company with all the licensing and insurance than one that doesn't.

We had over $2K worth of trees cut down or trimmed. The stumps were grinded. We could have recycled the mulch for different areas of the HOA property if we choose. However, the type of trees mulched had termite/disease issues. Our city would remove tree debris for FREE IF the work wasn't done by a contractor. That may be an option to check into because REMOVAL of the trees is another factor of the contract...

Former HOA President
JonD1
Posts: 2,350
Posted:
Quote:
Posted By ShawnaT on 02/24/2011 6:54 AM
Jon
I work with a group of people that are on the board simply because they can say they are "on the board". I also work with people that are not on the board but were previously that are working on the facilities because he has the time and desire to work on facilities.
There are a lot of layers to our board, some conspiracy theories, etc. So honestly day to day, I have no idea who I can or cannot trust with the exception of one or two here and there. I have been the president for just under a year and a half, I was voted in originally as the best choice after the previous president resigned and was voted back in for another term.
To clear things up, the gentleman that got the permits did so last March. Why it has taken so long is beyond me. Though, everything in this organization is "talked about" and rarely acted upon...Case and point, my neighbors 9 year old son died three years ago. She was told by the old board that they would put up a bench in the community park in his honor. It wasn't unitl I came in Fall '09 that it got taken care of. When I went through minutes from meetings past it had been brought up SEVERAL times and that was it. I have spent the last year or so trying to clean up all loose ends and get the board running professionally.
As for the "bid" orginally, the facilities committee was going to cut down the trees, then it went to "I have a buddy who will do it for $500" and that went to $900 yesterday...I am cautious because he wants it presented to the board with nothing in writing, not even a name of who this person is...I had one tree cut down in my yard for $600, so I understand that is a good deal; however, it seems too good a deal, and there are people in this neighborhood that will inevitably question whether or not we appropriated the funds in the proper way, and with nothing in writing and no additional estimates...just doesn't seem right.

Shawna:

Welcome to the club. I too work with folks who serve on the Board and have no idea what in fact is going on. They are "once a month" Board members who occupy a seat rather than offer anything. Sometimes if you are lucky you might find one or two people willing to actually help.

The reality is when in your position you either do it yourself or things don't get done as you have found out. Sorry the installaton of a simple bench took so long while everyone waited for someone else to move. Like you we also had bench problems here for YEARS. The old Board would contract out the installation of benches throughout the property. The contracotr would buy the cheap wooden slats that you pick up for less than $100 install 5 of them charge us and then in a few years repeat the same process. Put in crap, replace crap and everyone makes more money and costs the property. When I became President I did some research found some concrete heavy duty benches, rented a truck, drove to CT, picked up the benches, unloaded them, put them together and so far they have lasted 8 YEARS. That took one day and done.

As to your trees in my estimation removing trees with a price tag of $900 is not what I would consider a big project. I would insist the men have insurance to do this work. If not then they should never be allowed to do work of this sort on the property. My first suggestion request a written estimate from the $900 guy and request to see proof of insurance.

One of your jobs as President should be to determine who you can depend on and who you should not follow. As I asked is this guy who made the arrangements for removing the trees honest, trustworthy, dependable or is he someone you find questionable? Removing trees (plural) for $900 is reasonable in my estimation as you have stated yourself $600 for one tree depending on the size, height, location is fair, average, if this were a average size tree.

Now the question is do YOU wish to handle every job that comes along and do the work yourself? Or can you find a way to pass off SOME of the responsibiilites to others that have knowledge in these particular areas? My guess if this is a guy who works with trees he MIGHT help you when it is tree work on the agenda. Unless he proves to be unable to act in a proper manner.

Maybe this project is a good chance to learn just who you are dealing with. But you need something in WRITING with a NAME and insurance. Or the answer is NO.

And finally Shawna on a personal note unless you live on a property like no other you will always have people who second guess what you have done. No matter what effort you put in or the process you use to cross all the Ts and dot all the Is, someone or some will pick at your actions. My advice make the best decision you can and do it. If you make a mistake learn and move on.

If you hire someone who does less than an acceptable job justy don't use them again. Set up and work on relationships with tree guys, electricians, plumbers, painters, and others who might work on your property on a regular basis. Then when you have a level of faith or comfort in YOUR working relationship you can seek advice from them and trust in their judgment.

There are a FEW decent, honest, helpful people out there your job find them and use their knowledge rather than trying to think through every little project you have coming up for yourself. Look for help and hopefully you might find some.

Good luck with your role as President I promise your perks and rewards will be coming in shortly..........
MariaC (Maryland)
Posts: 15
Posted:
Shawna, you are getting some very good advice in these answers. Get written estimates and use professional, licensed, insured tree experts or arborists.

When I joined my Board, no tree work had been done in 10 years, and in the first year we had to remove 19 dead or hazardous trees. We got 3 bids and chose the middle one and it was the start of a very good relationship with an excellent contractor. He does periodic walkthroughs of the property with us to gauge our trees’ health, especially after storms. All debris is cleaned up and removed. Pruning is done professionally with the trees’ health uppermost. Trees grow every year and must be maintained, so it’s a risk to neglect them. (Before we found this contractor, apparently all tree work was done by a handyman friend of the old Board President. He was not insured or licensed, so we were very lucky nothing happened.)

Be sure to contact your local government about any rules they have regarding tree work. In my city we need a tree removal permit and we are required to replace any removed trees that are designated on our landscaping site plan. I was also told by my county Master Gardeners that Maryland requires that only professional arborists/tree experts can work on trees over 20 feet.

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