When to bid out, and when not to bid

We have a contract with our landscaping company to maintain the common areas etc.
We have used them for at lest the last 6 years. We have a great relationship with the company, and would recommend them.

This landscaping company has done additional jobs for us, for example, plant new flowers and install mulch at our front entrances, around other areas etc.

We recently got a quote from him to do some additional work, but now all of the sudden, one of my board member insist that we get additional bids.

While I agree getting multiple bids for improvements is good for all involved, and it also shows the members our due diligence, I do not think bidding out in this instance is good.

Too many cooks in the kitchen is how I see it.

We have several vendors that we trust, and sometimes it is all about the relationship.

I understand geting bids for one off projects etc, but I just need some feedback here.

Thanks in advance!!

Augustin said over $5K should be bid but I do not think the answer is that simple. What could be a minor outlay to one association might be a major outlay to another association. To me more than $5K with our budget of $100K would need to be bid. It also depends on the complexity of the need as in will people see and comment on the work or does it go unnoticed?.

I get wanting to price compare in theory, but landscaping is one area where you do want to dance with the one that brought you.

The company that does the install won't warranty because they aren't the ones maintaining it.

The company that maintains won't warranty because they didn't install.

If you are stating that you have not asked for competitive bids in 6 years I would say it's time to do so.

In my opinion, every time a contract is up for renewal (or prior to any auto-renewals), bids should be obtained.

You may like the company, and they may be doing a great job but you have zero idea if the cost is competitive unless you get bids.

Obtaining a bid that is lower does not mean you must award the contract to that company.
Obtaining a bid that is lower may give you negotiating power to have your current company lower their price (we did this and saved $10K per year with one company)

For any job that is not covered by an existing contract that exceeds $100 (this can vary based by Association), in my opinion, you should also obtain bids for.

In this particular situation, it would be interesting to know how long the Member (who is insisting to get bids) has been on the Board. It would also be worthwhile to know why they are insisting on bidding out this one job? There are likely motivating factors that we aren't yet aware of that are the basis for their insistence. Either way, their input should be heard and discussed, and the Board as a whole should make the decision on how to move forward.

There are many elements to consider when hiring a contractor. Aside from price, capabilities, reputation, and other factors . . . your individual relationship and length of experience with that contractor also play a huge part for both sides.

I agree with others that you are overdue in bidding out your existing regular maintenance contract, and that you should obtain competing bids for one-off jobs that exceed a cost/scope threshold that makes sense for your HOA/budge.

Good points about if the work goes to another vendor but your present vendor must maintain it.

Can the OP be a bit more specific on the work, the cost of the work, and how large is the expenditure compared to their present landscaping budget.

Don't bid out the additional work and use your existing landscape company. By doing so, they'll oversee the post-planting maintenance whereas they likely will not touch or guarantee any plantings by a third-party. It's messy and sows distrust w/ your current landscaper, with whom your board and community seems satisfied.

Creating landscaping confusion isn't a reflection of "due diligence." It shows me that there is the slightest touch of a incompetence issue w/ a board member.

You definitely should not treat HOA finances as you would treat your own.

For example, you may be willing to incur the risk of an uninsured or unlicensed vendor to save money when hiring someone to work on your house, but you should not incur that risk on behalf of the association.

Cost does not equal value. Boards that are driven solely by finding the lowest price are not doing their associations any favors.

People also need to consider the time spent looking for other bids. If it's a maintenance issue, the problem could get worse (and more expensive) while you take time to find the cheapest possible price.

For one condo I managed, the board wasted thousands of dollars in water bills while they debated for months whether to hire a leak detection service, and then insisted on getting multiple price comparisons just to test the leak! (the difference was about $70 from highest to lowest).

Most infamously, I had a board that thought $400 was too much to pay to haul a fallen tree out of the street, so they left it in the street over the weekend while we tried to find a cheaper vendor. A resident crashed into it (the street wasn't well lit) and totaled his car. Insurance covered it, and I don't know if the premiums went up as a result, but someone's life was totally upended because the board wanted to save a hundred bucks.

Contracted services - bid out every 3 years, knowing you run the risk that your vendor may realize he's under charging you. Improvements - get multiple bids, unless its a project that will mix contracted maintenance with a one off install in which think it over carefully.
Maintenance - on a case by case basis. Staining fences? Sure get multiple bids for that, it's not going to hurt anything to let them get a little more faded while you gather bids. Slide at the playground fell off? Fix it. Caution tape isn't going to keep people off it so it's a liability, and you'll just have irate homeowners wondering why you can't fix the slide already.

In my experience, outside contracted services, the savings are usually not massive. If I get bids that are wildly apart, it's usually because one vendor didn't understand the scope of work. You have to calculate the inconvenience of waiting to get multiple bids against the price difference.