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ChrisP5 (Missouri)
Posts: 165
Posted:
Has anyone here had the experience of not being able to find suitable vendors to meet your associations needs? For example we struggle with finding landscaping / snow removal services. We are a fairly large complex (22 acres) with average landscaping needs, ie we aren't looking for country club like grounds but well maintained none the less. When we bid out our contract every couple of years we have lots of companies interested until they walk the property and realize they don't have enough equipment / staff.

Our current landscaping company has perhaps grown a bit too aggressively and their service has suffered as a result. Our PM has spoken with him at length about her concerns and the concerns of the board and while he always says it will get better it hasn't. One large company in our area has bought almost every independent landscaping company when they reach any significant size. We have used this large company before and have considered switching back but they require a multiple year commitment which we don't feel that we should lock future boards into.

Similarly our management company (who is doing a good job BTW) has slowly absorbed the other two HOA property management firms in our area and has a near monopoly on the business at this point. We aren't looking to move but if there were to become an issue we have no other options.

Has anyone faced a similar situation? Any suggestions or advice would be appreciated.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Chris,

My association faced a similar problem. Similar in that we had trouble finding vendors we could work with.

In our case, we have nearly 300 miles of dirt roads that need to be graded and otherwise maintained. We are about 75 miles from any large town and the nature of the weather means that most of our must be done in the spring or the fall. Summers are either too dry most of the time or too wet from monsoon rains; in winter the roads are a frozen mud bog. Finding a contractor willing to work with us on our schedule became nearly impossible. We had one grading contractor who initially worked well with us but his equipment was often hundreds of miles away when we needed work to be done. We also suspected that he ignored us whenever someone else was willing to pay him more for his services.

After several years of fighting with the one and only vendor we realized that you cannot exercise much control over contractors. Then there is another issue to look at: When will the work be completed? In the case of our roads, the answer is never. Long after all of us are dead and gone the roads will still require maintenance. So will your landscape.

We bit the bullet and started buying our own equipment and hiring our own employees. Our association is now the proud owner of a $300,000 Caterpillar road grader, an end loader, a maintenance truck, a fuel trailer, and an inspection vehicle. We hire our own operators and support staff. When we need to grade roads we do not need to call the old contractor and beg him to move his equipment up to our place.

Given the size of your complex, you should not be horsing around with contractors. Buy your own equipment, hire your own employees, and stop riding the contractor merry-go-round.

PitA
Posts: 311
Posted:
We have used this large company before and have considered switching back but they require a multiple year commitment which we don't feel that we should lock future boards into.


What would be the issue with a multiple year contract with a satisfactory vendor ?

or

DIY as Larry suggests !
ChrisP5 (Missouri)
Posts: 165
Posted:
Larry are you hiring full or part time for your employees? I posted a few months back about hiring a part time general maintenance staff member and the vast majority of the responses seemed to indicate what a bad idea that was.

Pita we would probably sign a multiple year contract after one year of satisfactory performance but the company has changed so much since we last used them we don't have much current experience with them to base our decision to sign a pretty large multi year commitment on.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By ChrisP5 on 04/26/2015 8:04 PM
Larry are you hiring full or part time for your employees? I posted a few months back about hiring a part time general maintenance staff member and the vast majority of the responses seemed to indicate what a bad idea that was.

The people we hire are more like seasonal employees because most of the work is done as weather permits. There is a small pool of interested parties that we can draw employees from. Many are retired and welcome the work when it is available but are really not interested in full-time employment. Some the younger ones would welcome full-time work but there is not much of that available in the immediate area.

Sorry, but I do not recall the post you mention. I am not sure why anyone would think it is a bad idea although I a may be one of the few people with experience in hiring employees in businesses I have owned in the past. I think a lot of board members lack that experience and the thought of hiring employees versus hiring a contractor scares them.

PitA
Posts: 311
Posted:
? performance based contract ?
JerryD5 (Colorado)
Posts: 218
Posted:
If you signed with the big landscaping company that wants a multi-year contract, why can't you include a clause that gives you a 30 or 60-day out? That is standard in our contracts (both landscaping and our PM).

JerryD5 (Colorado)
Posts: 218
Posted:
Edited to add: the 30-day out is for contract violations. However, the 60-day out is for no-fault reasons. Meaning we can terminate the contract without giving any reason if we give them 60-days notice.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By JerryD5 on 04/27/2015 7:21 AM
If you signed with the big landscaping company that wants a multi-year contract, why can't you include a clause that gives you a 30 or 60-day out? That is standard in our contracts (both landscaping and our PM).


Our landscaping contract is for one year but it does have a 90 day cancellation notice by either party.

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