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ThomasH12 (Michigan)
Posts: 5
Posted:
What process/website do you use to find reliable, approved, insured and reputable vendors? Would most HOA's prefer to have the same vendor for everything? It seems to me that it would be easier to call "Your guy" and have them know exactly whats expected in case of emergency, etc. It seems that the less hassle involved all around would be nice to have.

I am asking this as a vendor/contractor. I want to make life easier for the HOA's I work for. The best source, in my opinion, is to ask those who make these kind of decisions. I have been tossing the idea around of all year, all inclusive contracts. Basically, one call per year to sign a contract, after that a monthly invoice for the same amount all year around (not including emergencies or extra work not outlined in the contract).

I would really like your opinions on this. I want to make life easier at least for my HOA's here in Central and Western Michigan.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Unfortunately, calling "Your guy" is not always possible in all HOA's. It's just the nature of the beast. Good business practice is to gather 3 bids for contractual work. Now the HOA may decide to do this for jobs over certain dollar amounts. Which means you may be their "guy" if you continue to do jobs under that amount or have a built in yearly contract.

You need to talk to the HOA board to discuss your ideas and see what they want. It's all in the negotiations. Be prepared to offer bids each time a job comes up. You may have the "in" but not the guarantee of winning. So do your best and hope they see you as a continued valued resource.

Former HOA President
TimB4 (Tennessee)
Posts: 21,062
Posted:
Thomas,

One vendor for everything is unrealistic.
Each trade has it's own specialties and requirements.
Additionally, having one contractor can prevent the bidding process and, to be honest, the bidding process is how the Association Board knows that they are paying a fair market price for the work provided.

We have an annual Trash/Recycling contract that is bid out when the contract is ending. This is done by utilizing referrals and approved vendors registered with the county.

We have a snow removal contract and a common area landscape contract that is done the same way.

For other things we either do the work ourselves or bid the job out. Where we bid the job out, our tree pruning for example, we always invite the existing contractors to bid, in addition to others. Over the years we now have 2 contractors that can provide us tree work and each has their own specialty. I can call either one in an emergency and they respond. Based on bids, I always seem to be able to give work to each every year.

Now, as you are a contractor, you may want to put together a team of various trades and provide a general site maintenance contract option to your clients. Including things like HVAC, landscape maintenance, electrical, power washing, concrete (sidewalks/curbs), etc. within the contract for a price (or as options) will at least get the word out that your company can be the go to guy if that is what the Association wants.
ThomasH12 (Michigan)
Posts: 5
Posted:
Awesome! This is the feedback I was hoping for. Just trying to get a better scope on what everyone's needs are. What you said actually makes a lot of sense.

What process do you use to actually locate vendors for bidding purposes?
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By ThomasH12 on 02/18/2016 7:55 PM

What process do you use to actually locate vendors for bidding purposes?

Past precedence (have we used them before).
Recommendations (yes, I talk to individuals in other Associations near me we also have business owners in our Association)
Special Licenses (example, our County landfill has a list of authorized vendors)
Personal experience (liked who did work at my work or home)
Trade organizations (CAI for example)
Internet Searches
What contractor vehicles do I see within the neighborhood all the time

Keep in mind, prior to sending an RFP (request for proposal), I also do the following:

1) review the website of the contractor (if they have one)
2) review the contractor with the BBB
3) Search for [name of contractor] complaints (taken with a grain of salt but look for patterns)

I've also had individuals utilize specific forums and sites like yelp or angies list to review contractors.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By ThomasH12 on 02/18/2016 7:55 PM
Awesome! This is the feedback I was hoping for. Just trying to get a better scope on what everyone's needs are. What you said actually makes a lot of sense.

What process do you use to actually locate vendors for bidding purposes?

We depend on our PM to bring companies forward he has used or knows of. We have also contacted other associations.

While we do not have to deal with snow in the south, in MA we contracted with one company to do lanscaping and snow removal We paid them a flat monthly fee for all.
GeorgeR8 (Arizona)
Posts: 182
Posted:
We have 340+ associations where I live. When we wanted to change pest control companies I drove around until I saw people standing around their condos and asked them who they hired and were they happy with them. Some would even go to their units to get a receipt to show me what they paid. Our landscaper has gotten lots of work when people stopped and saw what he did for us. When I had the drives sealed more people stopped. They asked me the same questions I have asked others.

I have asked and been asked about every type of business you would ever need. If you know there is an HOA, stop the car and ask any group of people you see around. A good chance at least one will be a board member. Then check out the company online.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Keep in mind that many HOA's do have a requirement that the contractor is licensed and insured. Plus the insurance policy must be a minimum of 1 Million dollars. You may want to ask the HOA what their requirements are in those areas and who's name is on the permits if required.

We had a general "Handyman" that was the former President. He was quite the con-man but was "trusted" by the membership due to his residency/former service. So he was ALWAYS the "go to guy" for many projects. It was because of his questionable issues that we created the 3 Bid system for ALL contractors. He was still able to bid but only if he met the requirements. I had to watch him like a hawk and beat him to the accountants office. He'd often bid the job and then ask for more money to finish it. A bid should be "All encompassing" of the cost/labor/supplies.

So be careful about how you do your bidding/contracts with a HOA. Keep in mind that if you win the job to find costs will raise due to more supplies/labor, it may need more HOA approval. You can't just raise the bid price to compensate the additional expense. The HOA needs to be aware and approve the additional expenses or you will be eating them. This can cause some delays for everyone. Plus it can leave a bad taste in the mouth for the HOA. Not that additional expense doesn't happen and aren't necessary. It's just needs to be addressed in a manner of which the contract is a bit flexible for all parties.

Former HOA President
SheliaH (Indiana)
Posts: 6,964
Posted:
All good suggestions so far - I'd add checking references, so you may want to keep track of the HOAs you work with and have their contact information at the ready when a potential customer asks for them. You may want to save a little time by having them complete some sort of customer service survey when the work is completed and ask in advance if they'd be willing to serve as a reference. When possible, take pictures of your work so people can see what you do. Then when people ask for references, you can show them the customer survey, photos AND have contact information so they can talk.

And be sure to talk to the HOA about things like who contacts the homeowners in advance of upcoming work on the common areas, so they'll know to move their cars, secure the dog or whatever. If you can't get something done because a homeowner interferes, document it and forward that information to the property manager or designated board member and let them handle it.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

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