JudyF (Florida)
Posts: 7
Posts: 7
Posted:
If a Board member contually has a conflict of interest with family members continuing to be a contractor of the HOA that she is on the Board of and NOT all BOD mmeebrs are aware, suggestion!
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TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Judy,
A conflict of interest isn't necessarily wrong. It depends on all the situations surrounding it.
Who awards the contract?
When was the contract awarded (i.e. was the person on the board at the time)?
Were the other board members (who are not aware) on the board when the contract was awarded?
Were bids solicited for the contract?
Is the work of the contractor satisfactory?
Is the price paid consistent with similar work in the city/county that you live in?
This could be an issue of perception rather then an issue of wrong doing.
If your concerned about it, write a letter to the Board with a copy to all board members asking how the contract was awarded as you believe that their may be a conflict of interest.
Tim
A conflict of interest isn't necessarily wrong. It depends on all the situations surrounding it.
Who awards the contract?
When was the contract awarded (i.e. was the person on the board at the time)?
Were the other board members (who are not aware) on the board when the contract was awarded?
Were bids solicited for the contract?
Is the work of the contractor satisfactory?
Is the price paid consistent with similar work in the city/county that you live in?
This could be an issue of perception rather then an issue of wrong doing.
If your concerned about it, write a letter to the Board with a copy to all board members asking how the contract was awarded as you believe that their may be a conflict of interest.
Tim
JudyF (Florida)
Posts: 7
Posts: 7
Posted:
The Board was aware, conflict of interst was disclosed, however it was just 1 contractor, now the whole family has become a contractor, and in the beginning it was no problem until questioned on the invoices it was no problem, now that the Board member is aware of questions being asked on improper billing and the Board member is the one doing the billing to the HOA for her family, and then got angry when invoices, prices, projects were ere questioned by anothet BOD member.
JanetB2 (Colorado)
Posts: 4,219
Posts: 4,219
Posted:
Hi Judy:
Your posting at this time does not show which state your HOA is located. In essence generally in many states if the board is made aware ahead of time regarding potential issues there is no “conflict” under the law. However, this is potentially a good example of why no board should potentially allow any conflict in hiring family members of a board member.
Keep in mind the board is responsible for the overall operation of the association. Because of this each board member, especially due to fiduciary duty, has a right and obligation to question certain items especially regarding association money.
My personal opinion is an individual would not necessarily get angry over money questions, unless potentially there may be issues. If I asked simple questions about invoices, prices, or projects regarding work performed by a board family member it would possibly raise a red flag that there is a potential problem if a lot of anger was involved.
My suggestion would be to put future projects out for closed bid with certain specifications determined by the board. If it is a closed bid, then there can be no conflict with regards to a family member underbidding due to inside knowledge divulged. Anyone awarded the work is paid per their proposal and bid amount for work to be performed.
Your posting at this time does not show which state your HOA is located. In essence generally in many states if the board is made aware ahead of time regarding potential issues there is no “conflict” under the law. However, this is potentially a good example of why no board should potentially allow any conflict in hiring family members of a board member.
Keep in mind the board is responsible for the overall operation of the association. Because of this each board member, especially due to fiduciary duty, has a right and obligation to question certain items especially regarding association money.
My personal opinion is an individual would not necessarily get angry over money questions, unless potentially there may be issues. If I asked simple questions about invoices, prices, or projects regarding work performed by a board family member it would possibly raise a red flag that there is a potential problem if a lot of anger was involved.
My suggestion would be to put future projects out for closed bid with certain specifications determined by the board. If it is a closed bid, then there can be no conflict with regards to a family member underbidding due to inside knowledge divulged. Anyone awarded the work is paid per their proposal and bid amount for work to be performed.
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Judy,
Based on your reply, the issue isn't a conflict of interest but of concerns over invoices. This can happen no matter who the contractor is.
I agree with Janet. If the invoices from a contractor, no matter how good their work is, are becoming a concern then it's time to solicit bids again. Look over the contract you have with the current contractor to determine what conditions must be met before the contract can be severed. You might have to wait until the end of the contract period.
Tim
Based on your reply, the issue isn't a conflict of interest but of concerns over invoices. This can happen no matter who the contractor is.
I agree with Janet. If the invoices from a contractor, no matter how good their work is, are becoming a concern then it's time to solicit bids again. Look over the contract you have with the current contractor to determine what conditions must be met before the contract can be severed. You might have to wait until the end of the contract period.
Tim
SusanW1 (Michigan)
Posts: 5,202
Posts: 5,202
Posted:
The board member should NOT be the spokespeson between the board and the "contractor". She/he is not the company -
The treasurer or committee chair should have a sitdown with the head of the company and discuss work, billing, etc.
Leave the board member out of this. Don't give her any power to act as a spokesperson for this company.
The treasurer or committee chair should have a sitdown with the head of the company and discuss work, billing, etc.
Leave the board member out of this. Don't give her any power to act as a spokesperson for this company.
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