Approved bid amount.

For me, once it went over the contracted 26, it's a NEW contract. They were contracted to do just 26. Unless the contract allowed for additional units to be added. It sounds like the first 26 were just used to evaluate the bidder/contractor. For me this would open up an opportunity to re-negotiate the contract if it's needed.

I re-read the question. Had to deal with this myself due to a crooked ex-president. A good contractor will contact the HOA BEFORE doing more work or expenses. Why? Because they are on the hook for those. If it's NOT approved by the HOA (Board) prior to the request, then it's on them to incur it. A reputable company understands this and won't send a bill that exceeds the original agreement.

Now I have experienced a situation where a contractor would present a bid. They then would come back to the source with overages, improvement ideas, or unforeseen expenses. Some of these are reasonable. INSPECT and AGREE they are REASONABLE. This is to be expected and that 10% is to cover those things. Now the issue is if the contractor skips this step and does it on their own. They need to understand anything outside the contract has to be addressed with the board. It may take longer for a decision but they aren't dealing with an individual. They are dealing with a corporation/group.

Red flags for me in a contractor is if they want you to pay for their supplies to do the job. For example: Paying a contractor to paint. If they want you to pay for their rollers, paint brushes, or other items required to do the job... That is a HUGE red flag. What kind of painting business passes along their operating costs to a customer? You pay for the Paint and the manpower.

Just make it clear to any contractor the process. That this is a HOA and that any changes, modifications, overages, or additional work has to be approved. They don't go to the MC except for the end check. The HOA is the one that hired them.

I am sorry, but the question poised by the OP is pretty vague.

1. What 10% rules?
2. If 26 CBU's were supposed to be put in, why were more than 26 put in?
3. Since I or others haven't seen the language put forth in the contract, it's difficult to say what the actual terms are.

This was a something the Board was required to take care of the common area. This was moving mailboxes from homes to a common area. Big difference.

?
What is a CBU?

Regardless, as said the contractor is obligated to install 26 for $4,000.00 with a 10% overage allowed thus 26 units for no more than $4,400.00.

Any amount of units above the 26 is re-negotiable.

* Correction,
Bid was for 16 cluster boxes with 16 slots which also has 2 package locker boxes and for 2 cluster boxes with 8 slots.

Total was for 18 CBU's in total to be installed.

Instead the Contractor endd up installing 22 CBU's total.
( Not quite sure YET as to why he installed 4 extra boxes ).

I have only seen the original Bid which was submitted on a single page invoice sheet which was very vague. Don't know if he has submitted an updated invoice YET, but would be shocked if he doesn't and pretty sure it will exceed the 10% overage allowance.

I am a BOD and Officer and only found out of the additional boxes when the map came out to distribute keys to homeowners.

This intire process has been totally mis-managed and improperly handled from the beginning in my opinion and want to ensure it isn't continued to be allowed for this project and any future projects,. But not quite sure how to get everyone on board.

Suggestions,. Comments would be greatly appreciated.

Tks

Since you're on the board, TN, you must make certain that proposals or bids' terms are clear and not vague. If they are incomplete do not vote to accept them. Try to convince your fellow directors to do the same.

Contracts must have a clause about what happens if there needs to be a change to the contract because something unexpected happened that's going to cost extra. These "extras" are called change orders. The vendor contacts the PM and says I have to charge more to xx because xxx doesn't work. The PM brings the change order to the Board who votes on it.

OR, the Board has voted to give the PM or, say, an officer the authority to approve change orders up to xx amount.

But it sounds like your board, TN, doesn't know how to read proposals and recklessly relies entirely on the PM. Big mistake. The "mismanagement" of the project is the board's ultimate responsibility.

to be a more knowledgeable director, vista davis-stirling.com, Main Index, Contracts. While a CA law firm's web side, their advice about contracts is useful for every HOA

Look, Richard, TN already said the bid presented to them by the MC was "vague." So it sounds like the Property Mgr. or Management Copy thought it was OK or they wouldn't have submitted it to the Board.

And the Board voted to approve it even though it seemed to be flawed. That's the board responsibility, not the PM's or MCs

The contract with our MC, and yours with your clients, Richard, clearly states the board is ultimately responsible. But it looks to me like TN wants to blame the MC.

It really shouldn't be complicated at all.
There are 266 homes within the HOA.

The problem had so far been,. The Pres. Just wants to get it done. Bypassing any proceedures in place to be followed.
Unfortunately he is s CFO for a private gvmt contact company and sermd to be trying to run the HOA as dictator and ruler.

Our previous Treasurer,. Receintly moved and the new treasurer really doesn't know a lot about being treasurer, propet proceedures, etc. and is being told , lead by the President adto proceedures, actions. Requirements etc.

The
President is making majority of any decisions without informing or running it past the BOD, leaving half of the Board in the dark.

One issue that cropped up today. The Presidentmafe the sole decidion, directed the MC to tell our pool mgr. to have several of our 15-18 year old kids several of which are female to go door to door and start distributing CBU box keys to residents between 5-8 pm.

The whole logistics of distributing the keys had been a major pain keeping it all straight.

I for one don't believe sending teenage kids out to go door to door to issue keys Is a very wise decision. Liability alone. Not to mention to intrust teenagers to properly distribute 266 homeowners could turn out to be a disaster.

But the Pres. Is insistent on having the pool monitor kids go do it and even threatened the pool mgr. Zto get it done or else he would recommend he be fired.

Kinda of for the same reasons that the party in power in Washington D.C. won't do anything about the guy sometimes occupying 1600 Pennsylvania Ave. They're afraid.

Yeah, I don't like the guy, but then, I WAS a Republican for 45 years.

The first problem is you seem to have a Board and MC that can't communicate.

The second problem is, if you or the others don't like what the prez is dong, no one here is going to be able to solve that for you.

You have 266 homes. THAT should have been mentioned right at the beginning to put into context the number of CBU's needed. No only needed, based on the number of homes, 17 CBU's. WHY the extras? We don't know what size all 22 that were installed. As I mentioned, YOUR association installed 336 individual mail slots, including package slots.

What power does the prez have. Unless check, as much as the guy in Washington D.C. And this is California, unless the person did something criminally wrong, there is no agency to go to. You are in charge of your own housekeeping.

I have dealt with Boards like this and sometimes as a MC you have to walk away if you have a true dictator not willing to communicate or work with anyone else.

Say, TN, you're mistaken to think the president should should run the "HOA board." It's true the president presides at your board meetings. but he does not have the authority to "run" anything UNLESS the rest of directors got to give him a lot of authority.

Read your bylaws, TN. Usually they say something like the president has at authority to do x, y or z, "subject to the control of the Board." The Board is all directors voting at meetings. Boards "run" non profits like HOAs, NOT presidents.

You must get help understanding these things from someone knowledgeable. Three years is a long time to struggle with these issues by yourself.

How many directors are there? Are you all scared to disagree with the president?

Our bylaws give the board the authority to delegate "running" the HOA to a MC, which we have done. Our contract with the MC gives the PM (Prop. mgr.) the authority to manage staff and vidnors, etc. The prez is the liaison with the PM, but there are very, very few instances when the president "runs' anything except board meetings. And even fewer when're the president can actually direct the PM.