Vendors Contractors Conflicts of Interest

As per my previous thread, I am on a rennovation committee and am heading up exterior and interior rennovations to our complex.

I have, personally, several contractors that I have used in my own businesses over several years. However, I am not going to use them as I consider this a conflict of interest. I also have access to several excellent tradesman where I have seen their work but do not know them specifically.

I think the latter is the best approach.

Here is my question: A certain board member brought on a general that has done a few small projects. There seems to be a very big insistance that we use this contractor and let him utilize his subs. However, I found he is really not very good. Work is sub-par and generally incomplete. Specific mistakes were also made in basic construction that I am concerned about. (I will have repairs made during rennovation when the proper tradesman is on the premises). Per sq ft estimates for masonry work are also unusually high. (this concerns me)

Is a contractor, who is a family friend of a boardmember, a conflict of interest?

I say absolutly. Do your boards utilize friends or established relationships etc?. I would love to use my contacts, but I think using a reputable GC/subs that are not connected to me via other projects is only acceptable route to avoid the big kickback question. Am I being too conservative?

GD, unless you would profit from it somehow i.e. a kickback of some kind or you have a financial interest in their business, then recommending someone you know to do good work is not a conflict of interest. In fact that is how we have prefer to do business and how our current landscaping contractor came to be, someone recommended his work and we asked him to bid on the job. We also don't necessarily go with the lowest bid, because sometimes when you take "bargain basement pricing" you get "bargain basement quality" and have to spend more than if you had just gone with a more qualified bidder to begin with; so knowing the type of work a person does is a big plus in my book.

GD, using your friends (or folks who have worked for you) is NOT a conflict of interest. Put their name in the bid/mix process, and let them compete.

Giving them a hint/clue/value as to what the low bid is coming in at IS illegal. By-passing the normal process to choose a vendor in favor if them is wrong.

But nominating someone you think does good work is NOT a conflict of interest. It's smart business.

I worked for a company with TOUGH business ethic policies. I had a very close friend who ran a consulting company. I continually recommended his company (and hired him) for my company's needs, because his company provided the best service, most qualified people, with the least problems, at the lowest price, of any other competing consultant. I made sure that all the bid packages were fair, I made sure that all the processes were followed by ALL bidders, and I told everyone that I personally knew and liked my friend's company. I was investigated approximately once every two years by my company "ethics board", and every time, I was cleared with a note that I had done all things proper, legal, and had placed the company in no jeopardy with my actions. And, my company got the best service for the least money each time.

Just keep it all open, honest, and above the table, and let the best vendor win.