board members taking bids

Started by BrennanL • 4 replies • 2208 views

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BrennanL (California)
Posts: 1

Posted:

Is it ethical for currenr board members to go out and get bids for a project in the complex I think they should be let go for conflict of intrest can anybody tell me the rules on this type of thing. thanks

JanetB2 (Colorado)
Posts: 4,219

Posted:

How do you think it is a conflict of interest to solicit bids for work to be performed? Who else do you have that is going to go searching or call and ask for bids?

ValerieS2 (Michigan)
Posts: 244

Posted:

Soliciting bids for maintenance is one of the primary duties of the board. There is also no reason you could not get a bid yourself and submit it to the board.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Your post isn't that clear. If the board member is getting bids for work to be done FOR the HOA's project then that IS a job duty of theirs. You too can submit bids if you want to as well. Howevever, contractors should be insured and licensed.

If the Board member has their own business and is soliciting work for that business, that is on their OWN time. They can't represent the HOA but they can identify themselves as a Board member for recognition purposes. The HOA insurance won't cover them if they do any work on their dime and NOT for the HOA.

If the Board member was trying to bid on a job for the HOA, they would have to go through the proper bidding process as ALL other bidders. Which in our HOA required a license/insured and did NOT represent the HOA.

I see nothing wrong. Our Vice-President had his own painting/handyman service. Albeit he was a con-artist, but he could openly bid on jobs if he chose. It was up to the BOD to approve or disapprove.

Former HOA President

SusanW1 (Michigan)
Posts: 5,202

Posted:

Assuming you have a generic bid form (to ensure apples to apples bidding) then board members giving a bid application to anyone would be OK.

But board members may have inside knowledge that might be advantagous to certain company, so just giving the bid form is as far as it should go. They should not be consulting or advising companies.

All bids shoud arrive to the board secretary by mail and be presented as "sealed."

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