Our Current Managment...company

Started by DebraP • 8 replies • 1585 views

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DebraP (California)
Posts: 3

Posted:

Well, to start with I was wondering if anyone knew how to change managment companies? Do we need to give any kind of a notice? The Board took on a big job of putting gates up in our community. All the bids that we looked at and approved one of them to do the job was referred by this managment company. We have been trying to get these gates up for over two years now. The company that was referred to us has continued to make excuses for evertything. We do have the gates, the motors and just need Electricity at one of the entrances. We thought that all was included but, we do not have any kind of electric at the one entrance. We have spent a lot of money for a lawyer through this managment company to help us out with all these problems. Of course that didn't help anything. My question is can we hold The Management company for some of these extra costs becuause of the vendor that they referred us too. What is the Managements responsablity for this mess?
We found out later that this Iron gate company does not even have a license. I recommend that any of you board members never ever take on a big job like this. This has been a nightmare. All we wanted was to make our community a little more private with the gates and all it has been is headache after headache. How do you find a Managment company that will do a better job all around and get the results that the board would like. Any ideas would be great. Boy, it felt nice to vent a little.
Thanks, Board memember

RogerB (Colorado)
Posts: 5,067

Posted:

Debra, you change management companies by first reviewing your current management agreement to determine when and how it can be terminated. Then it is time to start interviewing other management companies so you can terminate this one ASAP.

Your management company did a poor job. However, the Board was responsible for making the decision on which contract to sign and with whom. The Board determines whether or not they want to hire the unlicensed company. The Board was responsible for getting the electricity to the gate. So how is the current management company accountable other than for poor performance? Your Board's intentions were admirable; however their competence and that of the management company left much to be desired.

GeraldT1 (<Not Specified>)
Posts: 519

Posted:

DebraP,

In all fairness to the MC, the Board approves bids based upon specifications they review, and or create. Did your specifications include electricity? If not, why not? Ultimately the Board is responsible that the items included in a bid will satisfy a project. At the very least, someone should ask the question as follows: "I am not an expert in this type of installation. Will your bid satisfy all phases of the project to make the gates fully operational?". No one, including the MC is perfect, and the Board is volunteer.

First speak with your local utility provider and your borough code department first to find out what is involved in running electricity and to have all utilities staked out prior to future work. Then get 3 companies to provide you bids for running electricity and ask the question, Will the bid satisfy all phases of the project to make the gates fully operational?". Get it in writing.

Look at the matter as a learning experience that will help you manage your MC better in the future. As for switching MC's, did you first look to your MC contract for an answer? What do the terms of termination state?

Best of success!!
GeraldT1
NNJ

WilliamT (Arizona)
Posts: 489

Posted:

Debra, along with what Roger has said, the board is responsible for determining the specifications that the management company will put out to bid. The MC cannot know what size motor you want, what model motor, what gate design, what type of electronic opener, where the electricity will come from, and probably a dozen other things that the board would need to decide on.

A committee should have determined the scope of the work, including the electricity, which the board would approve to be bid.

The management company then gets the bids. Once the bids come in, a committee should review them all in detail and ask questions that they feel the board will ask. Then all of the bids should go to the board in advance of the meeting so they can review them and ask questions at the meeting. They would ask questions of the committee chair who will have made a recommendation of one or two of the companies. The board would then decide, or get more questions answered.

Someone on the board should have been on site when the job began, to review with the foreman, and at least once per day to see tht the job is being done as per the contract.

When the job is complete it is the board's responsibility to see that the job is complete in accordance with the contract. After it is complete then payment is authorized.

A board needs to know what they are paying the management company to do, and usualy it is not to write specs or inspect the work. It is the boards' ultimate responsibility to inspect.

Before looking at changing MC's, you would be well advised to review the errors that the board made, and see that they don't happen again. Also, work with the management company to help get the current situation solved.

Because I can be free during the day, along with another member, I do all of that for our board. When work is being done on a contract, I am out there, and I can tell you that being there will prevent a lot of honest mistakes from being made by a contractor, and also a lot of short cuts.

DebraP (California)
Posts: 3

Posted:

Thanks for the info. I will check into the contract with the MC.
They have been our MC for the last seventeen years. This was Our very frist big project for the community. Just another question we have several homeowners that don't take very good care of their property. They have been called to a hearing several times and fined. They pay the fines and do nothing about their yards. Any suggestions? We have even called code inforcement. They also park a car on the grass overnight, and on the week-ends. They have a garage but, it is filled to the ceiling with junk.
Thank-you for all the help with the other problem. I will share this with the board at our next meeting on the 24th.
Thanks Board member

RogerB (Colorado)
Posts: 5,067

Posted:

Debra, for repeat ofenders the following Rules and Regulations on Enforcement of Covenants and Rules is an example of how one association handles this.
"When an uncontested violation is not corrected within the specified time limit in the Demand letter, an initial fine of $50.00 shall be assessed for minor violations and $100 or greater may be assessed for more serious violations. If a violation remains uncorrected, subsequent citations may be issued and the fine will be doubled compared to each previous Demand letter. If additional Demand letters are issued for the same violation within 12 months the initial fine shall be $100."

MarieG (Florida)
Posts: 11

Posted:

You can't hold your MC responsible for Board errors. Actually it would have been best if you made the MC the lead on this project. Why does the board want to be involved to begin with? You should be the ones reviewing and signing the contract and the MC the entity that makes sure the job is done.

As far as firing them, read your contract and depending on your loacation, notice should be put in writing and a new firm hired. It seems that after 17 years and only one mistake made, you might be a bit harsh in wanting to fire the MC that quickly.
Has the board spoken to the owner of the firm to find out what happened?

BradP (Kansas)
Posts: 2,640

Posted:

Debra:

It sounds to me that the board was more at fault than the mangement company. Granted, it sounds like they recommended a poor company, but the board is the one to approve contracts. Sounds like each party had different expectations. Whenever you do a project you need to have everything spelled out as to who is responsible. Sounds like they were expecting power to be available and you were expecting it to be provided.

JohnR4 (Arizona)
Posts: 29

Posted:

Debra,
In arizona contracting without proper contractors license is a crime. Contracting activity w/o a license would be a slam dunk if the total project was in excess of $750, and Im sure yours was. Contact the registrar of contractors. Im sure they will be very interested in this.

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