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NpS (Pennsylvania)
Posts: 4,216
Posted:
Background: Our HOA paints our townhouses. We'll be putting the project out to bid soon. In the past, we had the contractor buy paints & stains per our spec. We've seen some painters doing a good deal of cutting with water. Others have used wood paint on foundation walls (contrary to our specs).

Proposal: We're thinking about buying the paint ourselves. Setting up an account with the paint supplier, and paying directly. Some think that this will give us a better record of what we're actually getting.

Question: I wonder if anyone has done something similar. Would like to better understand the pros and cons of making a change like this. Any other suggestions would be appreciated.

Thanks.

Sikubali jukumu. Read all posts at your own risk.
GenoS (Florida)
Posts: 4,276
Posted:
NpS, my HOA did that the last time it painted the homes. The HOA bought the paint and it was claimed that it saved us a good deal of money. Unfortunately I wasn't living here at the time so I can't vouch for that but the surviving minutes from back then suggest a good deal of money was saved. We're due to paint our 70 buildings again in 2021. It's a subject we'll be discussing. Sorry I don't have anything more concrete than that.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Funny I am VERY familiar with this situation. Our Ex-President scum when forced to get licensed/insured business choose it to be a "Painting" one. He did the same practice you speak of with watering down paints and also purchasing cheap paints. He may get the paints we recommended but would be like 10 year paint rated instead of 20 - 30 year. So understand a lot about being specific about the paint product etc...

I will say that some "watering down" of paint isn't that bad. Let's say if your using a paint sprayer to apply. It makes it easier to apply and less hard on the equipment. So would not say some water in the paint bucket doesn't need to exist. It just should be for the purpose of application if it's a thicker type paint. That being said, consult the paint company to confirm.

There are 3 ways of application of paint. 1. Sprayer. 2. Roller. 3. Brush. As you can imagine each one is a bit more expensive than others. Choosing spray will make the job faster and will be less expensive option. There of course are the downsides as it's more water down application and may cause lots of overspray onto surrounding plants/furniture items.

Roller application is a good medium ground. It's using rollers to apply. Which puts the paint on a bit thicker and smoother. It is a bit more time consuming and uses more products to apply. Still can be some "spray" and some unevenness. I like the look of a roller but it can miss underneath the boards.

Brush application is the best application. All the other applications do involve brush as well but mostly cutting in/edging. This is the most time consuming option and most expensive. It's also the neatest of them and may take the most paint. Depending how good quality you want the end result to work brushing is the most preferred. It also isn't watered down application.

I like your suggestion of picking out a place like Sherwin Williams and opening an account. You can also get recommendations for painters there. If you don't have a painter who wants to agree to this, then you may be right to question hiring them. A contractor not willing to accept an account is probably cutting corners somewhere.

Be aware of certain temperature conditions of applying paint. Can't be too hot or too cold. Take note of the years on the paint. Of course a 20 year paint isn't going to last 20 years. It's more like 10. The quality of it is better than a 10 year. Also decide on the application process. (Spray, roller, or brush). Make sure the contractor is licenses/insured. I think your on the right track on hiring a contractor to do the paint job.

Former HOA President
MarkW18
Posts: 1,290
Posted:
Whoever you go out to bid on the project will (should) bid higher on your project than if they were buying the paint. They have a markup built into the bid, 15-25% is about standard.
LaskaS (Texas)
Posts: 1,025
Posted:
we were considering buying the paint,, however,, if the hoa buys the paint,, the contractor usually won't guarantee the duration ,, longevity of the paint,, neither willl Sherwin williams..

plus contractors usually get paint at a a much much lower rate than an hoa can buy the paint.

NpS (Pennsylvania)
Posts: 4,216
Posted:
Thanks all.

Geno - can you provide some percentages on how much your HOA saved?

Melissa - never heard of 20 year paint. Consumer Reports did a write-up on exterior paints in their June 2018 issue. Highest rating went to brands that lasted the equivalent of 9 years and stains that lasted the equivalent of 3 years.

Mark - do you have any idea what percent of the typical job is paint/stain and what percent is labor?

Laska - i agree that some contractors might drop out because we're cutting into their profits. But I don't think because of paint quality. Our plan would be set up an account with the retailer, and have the contractor buy on our account. We're down to Sherwin Williams, Behr from Home Depot, or Clark & Kensington from Ace.

Sikubali jukumu. Read all posts at your own risk.
MarkW18
Posts: 1,290
Posted:
80%, maybe more.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By MarkW18 on 06/20/2019 8:42 AM
80%, maybe more.

Sounds low. I figure labor would be at least 1/2.

Sikubali jukumu. Read all posts at your own risk.
MarkW18
Posts: 1,290
Posted:
That's for labor.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
Quote:
Posted By NpS on 06/19/2019 9:05 PM
Background: Our HOA paints our townhouses. We'll be putting the project out to bid soon. In the past, we had the contractor buy paints & stains per our spec. We've seen some painters doing a good deal of cutting with water. Others have used wood paint on foundation walls (contrary to our specs).

Proposal: We're thinking about buying the paint ourselves. Setting up an account with the paint supplier, and paying directly. Some think that this will give us a better record of what we're actually getting.

Question: I wonder if anyone has done something similar. Would like to better understand the pros and cons of making a change like this. Any other suggestions would be appreciated.

Thanks.

I completely agree w/ auditing the painting contractor's paint brand choice as well as physically confirming that the agreed-upon paint brand shows up on site with proper labeling. Beware of any painters who quickly remove labeling.

Any contract for painting can absolutely establish protocol by which the HOA will purchase the paint and pay for it while covering labor costs for the contractor. Such a deal should be crafted up front as it will affect the contractor's bid price.

I think it's easier to allow the painter to supply the paint with clear instruction that a someone from the community desires to confirm the paint brand on-site due to past performance of other vendors. Be upfront and it's fine.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By MarkW18 on 06/20/2019 9:02 AM
That's for labor.

If that's the case, then we shouldn't expect much of a cost savings overall.

Sikubali jukumu. Read all posts at your own risk.
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By NpS on 06/20/2019 3:36 AM
Thanks all.

Geno - can you provide some percentages on how much your HOA saved?

I found something in the board meeting minutes from 2013, e.g. the last time we painted all the buildings. It's a report from the "painting committee" (one guy) that summarizes the 3 bids received for the job. A nationally known paint manufacturer sent a representative to evaluate the property in January of 2013 and supplied us with a 40-page "Pain Coating Recommendations" spec sheet. That's what was used when soliciting bids. Unfortunately only the first few pages survive. Judging by the Table of Contents I wish the rest of it was still around.

Anyway, on the summary page dated March, 2013, below the 3 bids is the following:

"Our cost for the paint is estimated at $30,875 for 1,625 gallons and sundries. XYZ_HOA purchasing the paint saves us over $20,000."

There were allegations never proven that the painting committee guy got a several-thousand dollar kickback from the paint company. Even if true, that would mean the actual cost of the paint was less and the $31k figure was inflated by the cmount of the kickback (if there was one).

UPDATE: I don't have time to look at it now since it's getting really late, but I FOUND a copy of the entire 46-page Paint Recommendation report. I attached the Table of Contents.
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NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By GenoS on 06/21/2019 12:20 AM

"Our cost for the paint is estimated at $30,875 for 1,625 gallons and sundries. XYZ_HOA purchasing the paint saves us over $20,000."

UPDATE: I don't have time to look at it now since it's getting really late, but I FOUND a copy of the entire 46-page Paint Recommendation report. I attached the Table of Contents.

Thanks Geno

If the manufacturer was SW, you can typically buy it at a 40% discount from retail. Those numbers look about right. Contractors probably buy paint a bit cheaper, but not sure if it makes that much of a difference.

If you can find it, I would be interested in knowing what percent of the total job went to paint and what percent went to labor.

Also, your table of contents look interesting. Any way I can get a full copy?

Thx.

Sikubali jukumu. Read all posts at your own risk.
NpS (Pennsylvania)
Posts: 4,216
Posted:
New Info: I learned that HD has hooked up with an app called Hover. It's an estimator's tool. You send in pictures of the exterior of a house and you get back a 3-d graphic of the house with all the dimensions.

Does anyone have experience with something like this? Would like to know what you think.

Thx.

Sikubali jukumu. Read all posts at your own risk.
KellyM3 (North Carolina)
Posts: 2,239
Posted:
For a serious painting project, work w/ SW and not through a big box retailer. What you describe is large-scale.
JeffT2 (Iowa)
Posts: 880
Posted:
A gallon of paint typically covers 400 square feet (sometimes less). How many square feet to you have?
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By JeffT2 on 06/21/2019 12:04 PM
A gallon of paint typically covers 400 square feet (sometimes less). How many square feet to you have?

Not sure yet.
Was thinking about the Hover app I mentioned earlier to gather that info.

Sikubali jukumu. Read all posts at your own risk.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Labor and other materials will always be more than just the cost of a gallon of paint.

https://paintingbusinesspro.com/how-to-estimate-paint-jobs/

GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By NpS on 06/21/2019 2:04 AM
If the manufacturer was SW, you can typically buy it at a 40% discount from retail. Those numbers look about right. Contractors probably buy paint a bit cheaper, but not sure if it makes that much of a difference.

If you can find it, I would be interested in knowing what percent of the total job went to paint and what percent went to labor.

Also, your table of contents look interesting. Any way I can get a full copy?

It wasn't SW it was PPG. The attachment size limit here is 200kb so if you care to post an email address I'll send it. It's pretty dry and technical with how many coats to use on what surfaces and the thickness of each, both wet and after it dries. I'd describe it as what you'd expect to hear from the paint manufacturer. The cover page says it was prepared by a salesman.

The HOA then chose the low bid for the painting contract. The selected contractor consulted with PPG they in turn came back to us with an adjusted paint cost that was 50% higher than the original $31k figure. The upshot here is the painting committee guy horrifically miscalculated how much paint was needed. So we ended up depending on the contractor's recommendations anyway. Who knows how much we saved in the end.

I think when a customer tells the painter that they, the customer, will be supplying the paint, the contractor will adjust their price upward in order to make up for the lost profit on the paint they didn't get to re-sell.

The painting contractor, with knowledge that we were supplying the paint, offered 3 contract options. The board went with the least expensive option for $254,000. That plus the paint added up to just about $300,000. The cost of the paint represented about 15% of the total.

As an aside, of course there was only $250,000 in the painting reserves and that started a snowball effect that still effects us today; but that's another story. Everything is a fiasco here because of lousy record keeping and piss poor planning. Good on you for doing research in advance of your project.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Thanks for your comments all.

I think you've confirmed my gut feeling that we aren't going to save any significant dollars by buying the paint ourselves. The painting contractor will recover any lost profit on paint by bidding higher on the project.

But that wasn't the real objective anyway. As stated in my original post, we're looking to get control of the quality of paint applied. By letting the contractor charge for the paint on our account at the paint store, we get a record of what's actually being bought. It might not help us that much this paint cycle, but we'll have a decent reference point the next time we paint.

Right now, we spend around $40-45k per year over a 5 year painting cycle followed by a year off - so 6 years total. We're thinking about going to a 9-year cycle (5 paint then 4 off) - which is where we expect the true savings to come from. We expect to pay a bit more for paint, but do it less often. If we're going to make this change, we need to get comfortable that the quality of paint is good enough and the contractor isn't doing much cheating.

Geno - If you would, pls send copy of your doc to me at [email protected]. Thx.

Sikubali jukumu. Read all posts at your own risk.
GenoS (Florida)
Posts: 4,276
Posted:
NpS, let me know if you didn't get that.

We're nearing the end of an 8-year painting cycle. Previously they tried to get away with a 10-year cycle but just couldn't wait that long once the stucco started to chalk out. We're on year 6 now. When the reserves situation was presented to the board last year their first instinct was to extend to a 10-year cycle. It didn't work last time and I'm pretty sure it won't work again despite claims that "paint is better now and lasts longer". Yeah, pull the other one. So we're looking at about an $80,000 shortfall if the estimated cost bears out.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By GenoS on 06/22/2019 2:59 PM
NpS, let me know if you didn't get that.

We're nearing the end of an 8-year painting cycle. Previously they tried to get away with a 10-year cycle but just couldn't wait that long once the stucco started to chalk out. We're on year 6 now. When the reserves situation was presented to the board last year their first instinct was to extend to a 10-year cycle. It didn't work last time and I'm pretty sure it won't work again despite claims that "paint is better now and lasts longer". Yeah, pull the other one. So we're looking at about an $80,000 shortfall if the estimated cost bears out.

Got it. Thanks Geno.

Our situation is a bit different.

We'll probably wind up with a 9-10 year cycle on paint and a 3-5 year cycle on staining decks. First time we've ever split things up that way.

No stucco. Just foundation walls. In the last cycle, we did a major push to get owners to switch from wood siding to vinyl siding. Went from 10% to 2/3. So longer cycle will have a lot less impact on overall look of community. Our colors aren't likely to fade, so that should give us a bit more life.

I can appreciate your Reserve dilemma. We pay for painting out of Operating funds instead. In the no-paint years, we either contribute more to reserves than normal or we invest the extra $ in greenery. So if we need to go a bit long or short, we'll just delay landscape improvements (which also are not Reserve items).

Will probably adopt some of the stuff in your doc. Thanks again.


Sikubali jukumu. Read all posts at your own risk.

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