Conflict of Interest

Started by ArtN • 3 replies • 1279 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

ArtN (Massachusetts)
Posts: 48

Posted:

We have PM who also does landscaping, in fact they were Landscaping company turned Property Management, now Landscaping cotract comes due, PM, insists they get the contract or they will resign, and this scared the you know what out of our Board of Trusees, the next year, partial new Board wants to go out on secret bids, they do, bids are opened at Board meeting with the PM present, after opened, Board gives PM all the bids to make a spread sheet as to how each vendor made their bids...................TO ME THIS IS DARN OUT CONFLICT OF INTEREST, IS IT NOT?
this PM is controlling the Board and wants snow removal and is already talking about roofs being replaced.....Please advise as to what you would do.

Jadedone4 (Virginia)
Posts: 495

Posted:

THREE competitive bids for EACH of the following...

1. Management Company

2. Landscaping Service

3. Roofer

4. Snow removal

EACH bid solicited by the board, with exact same criteria (work to be performed, what is expected) so that all are "apples to apples" bids. YOU, if you are on the board, and the board have the OPTION of inviting the PM to bid this contract upon expiration (#1 from above). Even if the PM provides the best service available you need to have a competitive bid from other services to balance and meet your fiduciary responsibility to the membership.

RogerB (Colorado)
Posts: 5,067

Posted:

Art, why would the Board allow such blackmail? I think it is time to get competative bids for MC and landscaper. The Board can collect bids and discuss in an executive session which the current MC is not invited to attend. Then the award of contracts can be voted on in the open Board meeting after discussion in the executive session. Also, you may or may not chose to invite the MC to the Board meeting.

BradP (Kansas)
Posts: 2,640

Posted:

Art:

Usually what I do when someone says I better get this or I quit is to tell them "don't let the door hit you in the you know what on the way out." First and foremost as a matter of principal I would never let an agent or contractor of the association act this way towards you. Secondly, since the contract is up the right thing to do is put it to bid, if the MC can't compete they don't get it. I don't necessarily see it as a conflict of interest if you have contracts that are well written with out clauses. I sure as heck wouldn't take that from your MC though, let them quit.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here