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GaryP3 (North Carolina)
Posts: 16
Posted:
Hello, I am a member of the board for our Property Owners association here in Burke County NC.
The Association was turned over to the lot owners in 2014. Since the 1st board was formed we have had the same landscaping (grounds maint) contractor.
He seems to do a good job but with the residents roles increasing all the time we have seen
1) and increase of questions about his scope
2) isn't what we pay him exorbitant? ($5K / month) - he also does other miscellaneous work in the neighborhood for additional $$ - we end up paying him close to $70K a year

These are valid questions. The board is supposed to act as fiduciaries so I think we should periodically look to re-bid this contract to see what competition is available. How do we know if we are getting what we are paying for if we never look elsewhere?
In addition to that this contract has always been by handshake, there is no written scope and no written agreement between parties.

The contract alone is a reason to re-compete in my mind.

Any thoughts?

Thanks,
Gary

WendyM5 (North Carolina)
Posts: 1,522
Posted:
yes you need to put our a request for proposal ASAP.
There is no license requirements to cut grass in north carolina. You will need to make sure they have insurance which is pretty cheap.
It is best to have your own contract that specifies maximum percentage increase per year, how much extra services cost broken down and also does NOT have an auto renew clause. ALSO GOOD TO HAVE MAPS OF WHAT IS TO BE CUT as a picture is much clearer than written words for this task.

Landscape Maintenance Contract
This agreement between XXXXXXXXX Homeowners Association, Inc.,
herein called “association,” and______________________________, herein
called “landscape contractor,” is made and entered into on ___/___/_______.
.
Services: The association agrees to engage the services of the landscape
contractor and the landscape contractor agrees to accept the engagement.
Services: Both parties agree that all specifications and stipulations on the
attached request for bid become a part of this landscape agreement between
the parties.
Contractor’s Responsibilities: Contractor is an independent contractor and
therefore assumes all responsibilities for any taxes, insurance, or licenses as
may be required by federal, state, or local laws for the protection of its employees
or for the right to do business. Contractor agrees to be responsible
for injuries or damage to property that occur as a result of the contractor’s
actions—even if the insurance in effect does not cover that loss. Contractor is
responsible for initially investigating and trying to settle any damage or injury
complaints as a result of the contractor’s service. Contractor indemnifies and
holds harmless the association, its directors and officers, management agent,
and staff for any claims arising from this contract. Costs associated with
resulting actions to rectify any violation shall be borne by the
Contractor.
Insurance & Taxes:
Contractor must provide a completed w9 tax form prior to doing any work. Contractor must also
Provide insurance certificate
Term: This agreement shall begin on ______________ and be in effect for a one-year period.
This agreement shall automatically be renewed at the end of the original
term for successive terms of one year each, unless one party gives notice of its
intent to terminate or renegotiate to the other in writing at least 30 days prior
to the end of any term.
Subcontracting: The landscaping services shall not be subcontracted without
the express written consent of the association.
Compensation: The association shall pay the landscaping contractor a fee of
$__________ per grass cutting of the fescue grass at the front entrance located at XXXXXX which should be done weekly and
$____________ per grass cutting of the XXX acre park area which is located at
XXXXXXWhich should be done bi weekly.
All side walks should be blown free of any grass clippings. See attached aerial view photos of
areas to be cut..
Payment shall be due and payable within the first five days of the month following the month of
service.
Additional OPTIONAL Services: Below are additional services that can be performed for an
additional fee.
CAN BE LEFT BLANK IF THESE SERVICES ARE NOT OFFERED.
$____________ Per job for Edging of sidewalks at front entrance and park approximately 400
linear feet of side walks.
$____________Applying Fertilizer or Herbicides or Pre Emergents to the front entrance only
approximately ¼ acre.
$____________Trimming Bushes located at front entrance only. Including all holly, boxwood
and other bushes.
$____________Applying insecticides to control fire ants around playground area in park.
$____________ Other:____________________________________________________
Termination: The contractor may terminate this agreement with 30 days notice
should the association fail to meet the payment schedule as outlined. The
association may terminate this contract with or without cause before the end
of the contract term. Not less than 90 days notice shall be given in the event of
cancellation without cause. Not less than 30 days notice shall be given for
cancellation with cause. In the event of termination, the association shall pay the
contractor for all described services that have been satisfactorily completed.
Any payment shall be the contractor’s sole exclusive remedy.
Notice: Notice that either party desires to give under this agreement shall be done via email.
[email protected] and _________________________________________
Integration Clause: This agreement constitutes the full understanding of the
parties, and no oral representations or prior written representations made by
either party shall be binding. This agreement may be modified only in writing
signed by both parties. This agreement is binding with the signing of both
parties, who represent to each other that they have the authority and ability to
comply with its provisions.
______________________________ _______________________________
______________________________ _______________________________
Association President Date
Association President Date
CONTRACTOR

vis ta vie
JackieB4 (California)
Posts: 398
Posted:
Having a Written contract, simply stated with specific responsibilities, should make it easier for both sides. Landscape complaints are the #1 issue in my 140 separate homes HOA. "They left a dead rose on the bush." "There is a dry patch on my lawn." "This tree is shedding leaves on my steps." I think it's perfect timing to receive 3 written bids from other vendors(including your current landscaper). Visit vendor worksites for comparison. Talk to other HOA's for references. Good luck!
GaryP3 (North Carolina)
Posts: 16
Posted:
Thanks y'all this helps a lot!!
MelissaP1 (Alabama)
Posts: 13,836
Posted:
When I took over our HOA the first thing I did is bid out the Lawncare contract. The Lawncare person was a resident. However, I made it a rule that ANY contract had to have 3 bids and ONLY be yearly. There was no multi-year contracts. Did not mean they could not get the contract again. Just they had to submit their numbers again and had that year to evaluate if we liked them. As a contractor, they should know that is how the business works.

Once you establish a 3 bid for every contract policy, then things get much easier to manage. It allows you more flexibility to get out of or into a better contractor.

Former HOA President
LetA (Nevada)
Posts: 2,679
Posted:
I really feel things won't be greener with a new company, ,Pun intended. Even the Company here that changes high dollar has trouble finding and keeping workers.
if Homebuilder pays $20 DPH as a general laborer, they won't stay with a leaf blower on their back for $15 DHP.
TimB4 (Tennessee)
Posts: 21,059
Posted:
The lack of a written contract is problematic if issues arise.

The lack of seeking bids when contracts are up for renewal means the Association has no idea if they are paying a fair market price.

If you are on the board, I would suggest you do the work and put together an RFP (request for proposal) and, with the boards permission, send it to many contractors - including the one doing the work now.

OR at the very least, formalize the agreement with the current contractor.
GaryP3 (North Carolina)
Posts: 16
Posted:
Thanks all for the advice and guidance.
We are starting the process to recompete the contract, we created a scope of work and a bid package and we are using the example written contract as a baseline to one we will use with help from our attorney.
This has been very helpful.
Regards,
Gary
KerryL1 (California)
Posts: 14,550
Posted:
Good idea to get help from your attorney, Gary!
MichaelS56 (Minnesota)
Posts: 858
Posted:
Our landscape vendor does not do any work without submitting a bid that the Board reviews and approves.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Our HOA was ONLY responsible for lawncare technically. We did not mow the backyard if you had your fence locked. Had to unlock the fence in order for lawncare to enter. I ended up using a map of our HOA lots and personalized each lot. That way was able to communicate to the new lawncare what each lot owner preferred, had pets, or wanted no mowing in back etc... Was able to colorize it for a general guide.

It was a lot of work but would suggest it. Just to get an idea of the scope of the work your HOA may demand of it's lawncare. It helped when someone complained about not being mowed that week. Come to find out they did not unlock their gate etc...

Former HOA President
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Several years back our landscaper did a major price increase so we were forced to look elsewhere. We got 4 bids. Two we eliminated immediately. One due to cost and the other had no track record. We came down to two. One large company and one smaller company. We liked the idea that the owner of the smaller company was also a worker so he would be on site. We signed a one year contract with automatic renewal unless either party cancelled within 60 days. The owner is very receptive and responds to any suggestions/criticisms we have. He is now on his 4th year with us. I do not see a change in the near future.

We did have a few burbs this past season. The owner is turning the business over to his adult son. We did not feel the son had pride of ownership as his father had. We sat down and had a chat and things got better.

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