New Landscaper Recourse

Started by FrankM7 • 12 replies • 2123 views

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FrankM7 (Pennsylvania)
Posts: 61

Posted:

We are in the process of looking for a new landscaper to care for our common grounds. This is a new process for me, and I have a question. When we do not renew our present landscaper's contract and engage a new one for next year, do we have any way to be assured that the new one will show up and perform accordingly? Or, do we have any recourse against the new one if they don't follow through and leave us without any services?

My guess is "no" but I would like to hear from anyone who has been through this potential situation having to quickly look for another service or go back to the former landscaper.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Frank,

I'm of the opinion that when you solicit bids for the common grounds maintenance that the Board will do it's due diligence and check references, BBB ratings, perhaps even drive by properties the company is currently maintaining.

Any recourse would be spelled out within the contract. However, if the board goes with the best they can get for the price they can afford, I would think that you wouldn't have any issues.

Tim

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

Any recourse would be spelled out within the contract.

I agree. If you write down specific duties to be performed and how often, there should not be a problem in firing them. Another tip, pay them by the week or month, never for an entire season. If they dont perform well, simply fire them and stop paying. Its easy enough to find another landscaper.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Tim gives good advice. I've been through this and can give a bit more information. Make sure to offer the current lawncare a chance to bid too. Unless it's an all out firing, they should be able to be part of the bidding process. Make sure you give them the 30 days notice required in the contract or whatever time limit is in it. Ours begins in May so need to let them know by April. Otherwise you could have an overlap of paying both services.

Go over the current contract and what the current contractor does. Make it part of their "bid" process. That way your HOA is aware of what the current contractor does or does not do. Find out why they do what they do. Do you want them to come back in the fall to blow leaves? Is it just the front yards? Do they charge extra for trimming bushes?

What I did is had a plat/map of the entire neighborhood. Took some magic markers and colored in different areas on the map. The colors meant where they mowed. If there were bushes, special conditions, dogs, or other common notes. You can color coordinate it as you want. I also then made a list of each lot # with a list of issues per each lot. That way I could evaluate the needs and give it to the contractor to reference. You can get this map from your courthouse or draw one if you want. Depending on the size and if you want to make that effort.

Get atleast 3 bids and don't always go with price. Make it for ONE year only and with contract cancelling options. You don't want to make multiple year contracts with anyone even if they offer to save money. Your HOA may be able to differ some costs onto the owners. Like certain bushes planted by the owners has to be paid by the owners to maintain. They can pay the contractor extra to do this for them if they want. Things of that nature that may allow the contractor to make a bit of money and owners take care of issues that don't fall under HOA guidance.

It's not easy but if you gather enough bids, get an idea of responsibilities, and review the existing contract then you should have a good start.

Former HOA President

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By FrankM7 on 08/29/2012 8:03 AM
We are in the process of looking for a new landscaper to care for our common grounds. This is a new process for me, and I have a question. When we do not renew our present landscaper's contract and engage a new one for next year, do we have any way to be assured that the new one will show up and perform accordingly? Or, do we have any recourse against the new one if they don't follow through and leave us without any services?

My guess is "no" but I would like to hear from anyone who has been through this potential situation having to quickly look for another service or go back to the former landscaper.

Frank,

Do not solicit bids without a statement of work specifically stating what you want done. Try not to be vague and do not allow "wiggle room" in the interpretation. Make sure the prospective contractor knows what he is signing up for.

The winning contractor should sign the contract which includes the statement of work. Be sure to the contract includes objective, measurable performance criteria which determines how and when the contractor gets paid. Pay the contractor only when the contractor satisfies the performance requirements.

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Frank,

Examples: Mow the lawns. How often? Every week? Every other week? How many total times will the lawn be mowed over a specified period of time? Have the contractor tell you what he will charge for each mowing and pay him that amount only when the lawn is mowed. Or, state the total amount and pay the contractor the pro-rated amount for each mowing.

Fertilize the lawns? How many applications? What type of fertilizer? When are applications required to be done? Rate of application (pounds of fertilizer per square foot or per square yard)? State the cost of each application and pay only when it is done, or state the total cost and pay pro-rated amount after each application.

You get the idea.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

We owners will be doing a planned and cordial takeover of our HOA and one thing on our list is a "come to jesus meeting" with our present landscaping company. They are the same company we have had for 4 years ad have been happy with, but recently the original owner retired and his sons took over. Their performance has gone down hill. Our declarant is unhappy with them, but has a contract until the end of the year so he figures (as I would) well, let the HOA deal with it when they take over.

My initial reaction is to give them a chance to clean up their act but I want something in return. My present thinking is a yearly contract but subject to a 30 day cancellation notice.

I also want to all in another company or two for a bid just to be sure we are comparing apples to apples.

I will be following this discussion closely for any tips.

FrankM7 (Pennsylvania)
Posts: 61

Posted:

Bruce, I am well versed about the list and descriptions as presented for a new landscaper bid. We have had the same one for the past 15 years and scrutinize their renewal bid every year. We are now looking for competitive bids based on the same criteria. My reason for posting my question is to look for possible contractual wording which some of you include in your agreements and/or unique ideas to keep a new landscaper in line with the agreement they have signed. I became treasurer about two years ago, and agree with our president that it is time to compare rather than accepting the status quo. Thus far we have three landscapers preparing bids.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Quote:

Posted By FrankM7 on 08/29/2012 2:39 PM
My reason for posting my question is to look for possible contractual wording which some of you include in your agreements and/or unique ideas to keep a new landscaper in line with the agreement they have signed.

This is some of the language we use (note: we do use multi-year contracts):

TERMINATION: The Agreement will continue in full force and effect, unless terminated in accordance with the provisions contained in the Agreement. Either party may terminate the Agreement at any time, for any reason, after one year from the Effective Date upon 90 days prior written notice. There shall be no termination fee.

In addition, the Agreement will be subject to termination immediately upon the occurrence of any of the following events:
a) either party defaults on any of its material obligations, representations or warranties under the Agreement, and the non-defaulting party notifies the other party in writing, specifying in sufficient details the nature and extent of such breach and, unless within thirty (30) calendar days after written notice of such default the defaulting party remedies the default,
b) either party files a petition for bankruptcy or is adjudicated a bankrupt,
c) a petition in bankruptcy is filed against either party,
d) either party becomes insolvent or makes an assignment for the benefit of its creditors or an arrangement for its creditors pursuant to any bankruptcy law, or
e) either party discontinues its business.

CONTRACT ADMINISTRATION: Customer reserves the right to withhold all or partial payment after notification of deficiencies in service and allowing the Contractor ten (10) days to correct the deficiency.

Customer will provide a primary and secondary point of contact with the authority to speak on behalf of the Association.

Contractor will provide a primary and a secondary point of contact who has the authority to act on behalf of the company.

FrankM7 (Pennsylvania)
Posts: 61

Posted:

Thanks, Tim.

I appreciate everyone's comments and ongoing input.

EdmundS1 (North Carolina)
Posts: 45

Posted:

Lot's of good advice in the responses. I wanted to ask if there were specific resident complaints regarding the current landscaper that initiated the idea of changing landscapers?. Not uncommon. Make sure those complaints, if any, are justified, are addressed with the firms that are bidding on the contract.

We had a landscaper that switched from walk behind mowers to riders mid-year. Damage to areas (ruts)increased, particularly after rains and since they could be run on high speed the grass was "run-over" but not really cut in many areas.

There is always something to worry about.....

Good Luck

JM10 (California)
Posts: 503

Posted:

Just wanted to say how wonderful that you all have contracts for your landscaper. We asked about one, but our HOA board didn't feel the need for a contract even though our CC&R and the state requires a contract.

So while I know making up a contract is frustrating, I wanted to give you all a pat on the back! (and my father was a landscaper/gardener).

FrankM7 (Pennsylvania)
Posts: 61

Posted:

I believe it's the fiduciary responsibility of the board members to protect the finances of our homeowners association by having an understandable budget along with written agreements with subcontractors, like landscapers, including certificates of insurance, to protect the well-being of the association.

In your personal businesses and for your own residence you can operate on a handshake if you want, but when we are talking about our associations, for which we have been entrusted to manage, you should be taking every precaution to operate with the members best interests in mind.

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