Creating new Bidding Policty

Started by MerrynG • 3 replies • 567 views

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MerrynG (Oregon)
Posts: 2

Posted:

I'm a member of the board at our 90 unit Townhouse Association. We're looking into creating a bidding policy to standardize how and when we receive bids for projects. We have an annual budget of approx 375k and are trying to determine what the minimum amount we want to require bids is and if it should be a set figure or a percentage of our budget. We're planning on writing in an emergency exception and also an annual amount to bid out recurring work done by vendors. Can anyone in a similarly sized complex let me know what amount your bidding policy requires? Any additional info on things you've found helpful or found didn't work well in your bidding polices would be helpful also.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Not exactly sure what you mean by bidding limit. Are you saying that you don't want to bid a job out unless it's going to cost $500 or more?

We have a 3 bid policy. The incumbent can bid and get 2 other outside bids. ANYONE can submit a bidding company/person. They have to be licensed and insured ONLY. Must have atleast a 1 Million liability insurance policy. We don't do bids multi year contracts. 1 year contracts allow more flexibility.

Some HOA's have the bid or hiring of contractors through the MC. Which may be in that contract. Others like us did bids on as needed basis. It depends on the situation. Routine contracts much easier to field out and research. Emergency ones not so much. It's good to have a good resource in mind for those times your HOA may experience certain situations.

Former HOA President

MerrynG (Oregon)
Posts: 2

Posted:

Yes, we're planning on only requiring bids for projects over a certain amount. Right now, we're thinking somewhere between $2-5k as the amount that would kick in the bidding requirement. Other possible way we may write it is as a percentage of our budget.

TimB4 (Tennessee)
Posts: 21,061

Posted:

We get bids on everything.
This way, we know we are getting a fair price.

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