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MargoT (Georgia)
Posts: 80
Posted:
We are a new HOA Board.

Recently, the Board met to discuss painting five parking lines in a designated parking area not to exceed a certain amount. One Board member new a Contractor that would do the work.

The Contractor emailed his Quote to the Treasurer.

Later, the Board member emailed the Treasurer who was visiting friends and not home twice in one hour, to ask her to pay the Contractor. So, the Board member took it upon himself to pay the Contractor who he knows.

The Board member emailed the Treasurer to state he paid the Contractor and wanted a check. The Treasurer replied to his email that he should make a copy of the email and provide his original signature and he would receive a check. He refused.

The Treasurer explained an original is needed and shouldn't be handled by email. He refused. To date, he has not been paid.

I would appreciate your advice.

TimB4 (Tennessee)
Posts: 21,059
Posted:
Always insist upon a receipt prior to issuing any check for reimbursement
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I am confused here. A board member can't simply hire someone without board approval. Plus even then, it has to go through the proper channels. It sounds like your self managed. The contract should have been submitted, reviewed by the board, agreed upon, and then the president contacting the contractor to hire. Only one source on your board should be doing the actual signing of contracts and dispensing of work after the GROUP votes to allow it.

The board member acted on their own and should not have paid for the work. It was unapproved work. It's like someone taking your car, washing it, and then come asking you to pay their cost for washing. Yes, the car needed washing but you did not tell them they could do it. Do you pay them anyways?

We had a 3 bid rule in our HOA. Anyone could submit a bid as long as that contractor was licensed and insured. We then voted on the best contractor. Once that was established, we would then extend the job to them. Once finished, that bill went to our accountant who cut a check. We would not get a check unless we already let the accountant know we took a vote for it. Which was at our meetings. Unless it was an emergency situation, we didn't just do work outside of the meeting to approve work.

This board member is SOL in my opinion and should have learned a lesson over this. I may eventually pay him back. HOwever, that would be after the lesson is learned and a new policy was put into place with the understanding one just does not randomly hire contractors just because they are a board member.

Former HOA President
TimB4 (Tennessee)
Posts: 21,059
Posted:
Melissa,

I understood this to be that the Board did hire the company and that one Director acted as the point of contact.

The issue is when the company wanted payment, to save time, that Director paid the bill on behalf of the Association and wants to be reimbursed. The Treasurer is simply asking for the original invoice and the Director is not producing it. Why he isn't producing the invoice is unknown to the poster.

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Its pretty simple. Until he produces an invoice, he doesnt get paid. Who cares if he complains.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By SteveM9 on 04/12/2013 5:03 AM
Its pretty simple. Until he produces an invoice, he doesnt get paid. Who cares if he complains.

I agree.

JohnB26 (South Carolina)
Posts: 1,569
Posted:
no tickee ~ no shirtee

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