Management co failed to send signed contract...

Hi all,

New here, so thanks for the help in advance.

Our Board signed a landscaping contract in October 2017 that the management company failed to send to the contractor.

As such, the landscaper was unable to honor the contract when we realized this error two weeks ago -- they had absolutely no knowledge of it (obviously) since it was never sent to them. Our management company secured a landscaper last-minute, but at a much higher rate.

Given that our management agreement stipulates that 1) time is of the essence, 2) the manager will work to get the best price for services, and 3) the manager will coordinate with association subcontractors, does anyone have any thoughts on the liability the manager carries with this misstep?

Thanks!

I would:

1. See if there is any language in your contract with the management company which addresses a situation such as this.

2. Ask the management company to make the Association whole and to assign another manager to your account.

3. Begin looking for another management company.

With respect to #2, you could possibly prevail in small claims court if the company rejects your request. With respect to #2 and #3, your relationship with the community manager and the company is likely going to be tainted going forward. People do make mistakes, and this was simply that, on the basis of the information you provided. Your association should not have to pay for the mistake.

As the co-owner of a management company I would not wait for my client to contact me to discuss a financial settlement, I would have already arranged a meeting with the Board to offer to make them whole. While such a mistake would possibly cause me to lose a client, I would know we had done the right thing. The up-front willingness to take responsibility and ensure the client is not out of pocket could save a client.

Before you talk liability, which sounds like gearing up for court, see if the company will do the right thing.

And, Tim, I agree with taking your proposed course of action before anything I suggested.

If the contractor cannot take on the contract as executed, it may be he does not have to capacity to do so. We had to terminate a landscape contract for cause early one year for a client and had a very difficult time finding another company to step in for the remainder of the year.

Thanks everyone.

The contract was for snow removal, and the original contractor had already closed its routes and allocated resources. As such, they couldn't make good on the original contract (that was never sent to them) 2 days before the first big storm.

Thanks!