painting questions- authority of BOD in choosing a contractor?

I am the fatigued and discouraged President of a 51 unit HOA in FL. The current board was elected unamimously in Nov. We have committees in place and have accomplished a lot. The former board was mostly a dictaorship with no imput allowed or considered from the community. We have established an open community and gotten some involvlement- never enough of course. We finally got painting estimates approved and the assessment passed by the community. Unfortunately, we listened to a couple that wanted an estimate using a different paint- elastomer. Sure- get an estimate for us. The BOD voted 3 to 2 for the original contractor. Questions?
Doesn't the BOD choose the contractor? Now the couple who wanted the estimate (friends of thiers gave the elastomer estimate) now are creating controversey saying that the original contractor is making a HUGE profit and they shouldn't have to pay for it. Sounds like they want their friends to get the bid! The original contractor was the higher price, but gave us a 7 year guarentee on workmanship and materials. They have been in business since 1947 and specialize in multi-unit painting. Their "friends"? gave us only "we have been in business a long time" and "the manufactureres warranty" in response to a request for a guarentee.I am ready to just turn it all over to a management company? Any thoughts? Our Covenants are very vague and give no direction.

pardon the English... but CHEAPER ain't always BETTER..!!

With some issues in an HOA cheaper does rule, but in this instance (and not negating the experience factor), you want to do a "CBA" (cost benefit analysis) of the warranty you will recieve (and make sure you review the T/C's for out clauses, or anything else which limits and/or voids warranty). Personally I would also check the manufacture/materials warranty to make sure that they are inline with the warranties the subcontractor is stating.

All in all, as I said, cheaper is not always better. Sometimes you have to review the more expensive bid for what it is totally worth to the community. As it was mentioned get three bids, that compare "apples to apples" and nothing else - so that all of the contractors are on the same page for the work requested. Ask for references, check references (i.e. older references of workmanship/craftmanship, and how the materials have lasted in the community).

Thank you so much all for the good information. That is why I come to this board often.

Brian:

If the painter is hired as an independent contractor and has valid insurance that is all you need to worry about. What he does with his workers is his business, not the HOA's. But you have to make sure he is an independent contractor.

It is very typical on insurance certificates to have the person who the work is being done for listed as additional insured. As part of my day job we rent out several facilities for a wide range of events and always require that our company and its workers be named as additional insured on their liability policies.

I can end this controversy pretty easy. You can tell the people who are upset about not hiring the friends this reasoning... Due to the way the HOA must collect special assessments, it was not possible to hire their friends no matter how much cheaper or better they may have been. The original bid of the estimated costs of the HIRED contractor had already been agreed upon and that amount divided equally amongst ALL the owners to pay. After agreeing to the special assessment amount, it is not possible to now change that agreed upon amount. It would cause confusion and chaos and doubts about anyone bidding on the job.
Essentially, you can't tell everyone the job is going to cost $10K and cost 10 homeowner's a $1,000 a piece and then change that amount. The HOA has to divide the cost of the bid equally and for the EXACT cost. (plus some cushion). It's simply too late for the HOA to except even a cheaper bid after they have collected the approved amount.This response should please them into thinking it may be a case of "red tape" and procedure.
I had a paint contractor in my HOA. The former President a matter of fact. He used really cheap water down paint sprayer. He'd quote owner's a "cheap" price and then add onto that bid after he got started. Miracously always finding some kind of additonal issue that needs addressed. It was a complete nightmare.
Our HOA is single family homes with some attached to eachother. The HOA is NOT responsible for EXTERIOR paint but for approving the colors/suggesting it needed repainted. We also had a "clause" that the HOA could determine a home was in need of repair. IF the owner didn't do the repair, the HOA would use it's money to do the repair and send the Owner the bill. If that owner refused to pay that bill, we could lien them for that money owed.
Well, the former president was VERY well aware of this rule. He would come up to me (President) and give me a list of homes that were in need of painting. He was soo willing to paint the houses for the HOA if we would gladly hand over the money to him. He reasoned that the HOA could ALWAYS lien the Owner for the money. What a great idea! (Sarcasm is THICK here!) Needless to say, I was "one up" on him. Instead of "playing along" with his obvious scheme, I made it backfire in his face and was able to improve the neighborhood without costing the HOA a dime! My solution: I simply promoted his painting and advertised it to the owners. Heck, I even helped him paint a few houses and he paid me for it! What happened is I was able to get the owner's to pay him DIRECTLY. He couldn't get a dime from the HOA. He wasn't a contractor of the HOA but he was the "recommended" one if an owner needed a reference. The owner's were free to choose their contractors but he usually under bid them. (at first).
Mind you I wouldn't let this guy near my house with a paint sprayer! However, I was able to "kill 2 birds with one stone". I was able to distract him to address the owner's directly, and I was able to get the houses that needed painted done. It raised the home values of the neighborhood a few grand!
So there are "ways" to deal with bad "favored" contractors. You just have to be a little "inventive" and be careful not to slander them at the same time. Hopefully, by the time your contractor gets to these people's house, the job will be so good, they will be impressed and forget their friends. A good paint job forgives all!

Brian, there are usually clauses that prohibit a contractor from "subbing" out a contract without permission and approvals of the HOA.

I would agree that the sub could make a valid "WCI" claim if injured, and it would be against all three parties, and not just the HOA.

Would it benefit the HOA to place a "cease and desist" order on the contract? Are there are termination provisions in the contract which the HOA is allowed to exercise? What would be the harm vs. benefit of doing any of the above?

Was the original contractor paid in full, or payment program at completion of milestones (say every building completed)?

Can the HOA enter into a agreement with sub of the sub hired by the contractor, which states no liability (WCI provision)?

Can the HOA inform, require the original contractor to extend WCI coverage to the sub's that he/she hired?

Learn from this mistake and move on to the next HOA project.