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CorbinB (Florida)
Posts: 7
Posted:
Hello we are a gated HOA community with 3200 homes. Our amenities and established landscape are 20 years old and so we have neverending repair, refurbishment and replacement projects. I am concerned when a $25,000 tree trimming project is presented for a vote with only one vendor bid and the management company always use the same vendor. This one bid practice is also used for other major projects. I thought FL Statute 720 gives guidance on multiple bids what is your interpretation and is there any recourse for members? Thank you.
TimB4 (Tennessee)
Posts: 21,062
Posted:
Without looking at FL statutes.

It is always best to obtain multiple bids to make sure the preferred vendor is not taking advantage of their relationship with the Association by charging higher than market price (trust but verify).

As an example, in my previous association our trash/recycling contract was up for bid. The board wanted to simply sign the new contract. I had already done the work and simply asked permission to request competing bids. Being human, since the work was already done (Request for proposals drafted and ready to mail to multiple vendors), the board said sure - go ahead. When the bids came back, we found the existing companies renewal contract was 10K over market rate. We liked the vendor so asked that they lower the price and they did. Lesson learned - trust but verify.

What can members do -

1) participate -
attend board meetings to see what is going on
Volunteer to do some of the work (regardless if there is a PM or not)
attend and vote at annual meetings to make sure candidates who think as you do are elected.

SheliaH (Indiana)
Posts: 6,964
Posted:
The board ultimately makes the decision on the vendor- have you asked them? If not, why not and if
so, what was the response?


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
CorbinB (Florida)
Posts: 7
Posted:
The Management Company says 3 bids isn't necessary because they have a good rapport with the vendor's and trust their judgement. The Board agrees with the Management company.
DouglasK1 (Florida)
Posts: 2,046
Posted:
Here is the only thing I find in 720 about multiple bids:

720.3055 Contracts for products and services; in writing; bids; exceptions.—
(1) All contracts as further described in this section or any contract that is not to be fully performed within 1 year after the making thereof for the purchase, lease, or renting of materials or equipment to be used by the association in accomplishing its purposes under this chapter or the governing documents, and all contracts for the provision of services, shall be in writing. If a contract for the purchase, lease, or renting of materials or equipment, or for the provision of services, requires payment by the association that exceeds 10 percent of the total annual budget of the association, including reserves, the association must obtain competitive bids for the materials, equipment, or services. Nothing contained in this section shall be construed to require the association to accept the lowest bid.


It says competitive bids need to be gotten for projects over 10% of the annual budget, but doesn't say how many. Assumedly it would be at least two.

Escaped former treasurer and director of a self managed association.
SheliaH (Indiana)
Posts: 6,964
Posted:
Quote:
Posted By CorbinB on 07/29/2024 6:14 AM
The Management Company says 3 bids isn't necessary because they have a good rapport with the vendor's and trust their judgement. The Board agrees with the Management company.

The management company may have several client HOAs who also do business with a vendor, and so they're able to get a discount on the service (so they can keep those clients and possibly get more). That can work very well, and I know that's why my assoociation concurred occasionally with the property manager's recommendation on some projects. That said, I agree with you that the more expensive the work, the more important it is to get at least three bids to keep everyone competitive. This is a matter of common sense and shouldn't have to be mandated by a state law. Then again, common sense isn't so common, as Benjamin Franklin once said.

In any case, your beef is really with the board because they make the final decision, so you need to ask them if they've done their due dilligence to ensure this vendor is a good choice, such as asking for references and checking them. If you have concerns about this particular provider, bring that up with the board and see what they (and perhaps the property manager) have to say. If you still don't like what they say, you can always run for a spot in the next board election to replace at least one of them and then push for a policy requiring a minimum of three bids if the work will exceed a certain amount.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
KerryL1 (California)
Posts: 14,550
Posted:
With Shelia: ask the Board at an open meeting. Only the Board may approve contracts with its votes.
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By DouglasK1 on 07/29/2024 7:21 AM
Here is the only thing I find in 720 about multiple bids:

720.3055 Contracts for products and services; in writing; bids; exceptions.—
(1) All contracts as further described in this section or any contract that is not to be fully performed within 1 year after the making thereof for the purchase, lease, or renting of materials or equipment to be used by the association in accomplishing its purposes under this chapter or the governing documents, and all contracts for the provision of services, shall be in writing. If a contract for the purchase, lease, or renting of materials or equipment, or for the provision of services, requires payment by the association that exceeds 10 percent of the total annual budget of the association, including reserves, the association must obtain competitive bids for the materials, equipment, or services. Nothing contained in this section shall be construed to require the association to accept the lowest bid.


It says competitive bids need to be gotten for projects over 10% of the annual budget, but doesn't say how many. Assumedly it would be at least two.

Project 1. - trim trees section 1 in March - 6% of budget.

Project 2 - Trim trees section 4 - 5% of budget.

In my view, no bid required.

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