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RaoK
Posts: 1
Posted:
Hi,

Would like to know whats the process if the Lowest and Highest bid amount differ by more than 10%.

State: Maryland

We got bid for work for our HOA association.

Lowest Bid and Highest bid has a difference amount of more than 10% .
Board wants to for highest bidder as they are more reliable.

My Question, Do we need to go for community voting for bid Highest bid approval.

Any help would be greatly appreciated.
SheliaH (Indiana)
Posts: 6,964
Posted:
You need to check your documents first to see what they say, but I suspect they probably don't address issues like this. Usually, the homeowners have to approve special assessments and some communities also require homeowner approval for next year's annual budget or if the new year's assessments will exceed a certain percentage from the current year.

As a practical matter, documents can't address every single detail of HOA life and they really don't have to - you have a board of directors that's charged with supervising the association's affairs, including hiring contractors. Sometimes they will make decisions you won't agree with, but that doesn't mean they're automatically wrong. It's true that paying more money doesn't necessarily guarantee high quality, but it's also true that you get what you pay for - in this case, it may be worth paying more if you're working with a contractor who has a better track record. If you go with the lower bid, you may risk dealing with more drama down the road as well as paying out more money.

If you're on the board, do your job - consider the ENTIRE bid, do your due diligence, such as checking references, consider all the pros and cons, then make your decision and run with it. As long as you explain why you chose one over the other, you should be ok. yes, some people will disagree, but your duty as a board member is to make the best decision that benefits the entire community.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
DouglasM6 (Arizona)
Posts: 724
Posted:
Quote:
Posted By RaoK on 10/24/2017 6:10 AM
Hi,

Would like to know whats the process if the Lowest and Highest bid amount differ by more than 10%.

State: Maryland

We got bid for work for our HOA association.

Lowest Bid and Highest bid has a difference amount of more than 10% .
Board wants to for highest bidder as they are more reliable.

My Question, Do we need to go for community voting for bid Highest bid approval.

Any help would be greatly appreciated.

Many times the requirement is for multiple bids but you are not required to choose the lowest bid. In this case, if you know the high id does good work, I would lean that direction. Saving money by hiring a lesser experienced contractor can easily cost more than 10% in the long run.
PaininyourA
Posts: 215
Posted:
DITTO

It is 'good practice' to get the best one can afford instead of the cheapest one can find.

? 10% ? a mere pittance for quality KNOWN good work
DouglasK1 (Florida)
Posts: 2,046
Posted:
Quote:
Posted By RaoK on 10/24/2017 6:10 AM
Hi,
My Question, Do we need to go for community voting for bid Highest bid approval.

Not unless your governing docs or state law require it. My experience is that either case is unlikely, and the board probably has the authority to choose the vendor that they think provides the best proposal, taking all factors into account.

Escaped former treasurer and director of a self managed association.
TimB4 (Tennessee)
Posts: 21,062
Posted:
The original posters count is at zero.

It appears that they posted the question, then resigned.

If they come back, I'll take the time to respond.
GenoS (Florida)
Posts: 4,276
Posted:
I just want to add that my HOA, over the last few years, went with the lowest bid on 3 separate unrelated maintenance projects that were all in the approximately $5,000 to $15,000 range. All of those choices proved to be mistakes. The lowest bid is not always the best choice. Each situation is unique.

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