VL2
Posts: 2
Posts: 2
Posted:
How many bids should the HOA request for contracts over $5,000.00, $10,000.00 and $20,000.00? Are there State laws which apply to these situations? Thank You!
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HOA Minimum Bid Compliance
Started by VL2 • 10 replies • 185 views
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ElleN (Idaho)
Posts: 1,339
Posts: 1,339
Posted:
I have read many state HOA statutes and state condo statutes. I do not believe any state has a law that expressly requires a certain number of bids under some conditions.
Statutes do require that Boards act in the best interests of the corporation. Boards are fiduciaries to the corporation, and this has legal meaning. This is the principal argument for getting multiple bids on contracts expected to be over such-and-such amount.
Statutes do require that Boards act in the best interests of the corporation. Boards are fiduciaries to the corporation, and this has legal meaning. This is the principal argument for getting multiple bids on contracts expected to be over such-and-such amount.
TimB4 (Tennessee)
Posts: 21,062
Posts: 21,062
Posted:
Like Ellen, I have not seen anything in applicable statutes that require a minimum number of bids.
A rule of thumb is to obtain 3 bids (if possible) for any contract.
A rule of thumb is to obtain 3 bids (if possible) for any contract.
MichaelS56 (Minnesota)
Posts: 859
Posts: 859
Posted:
Make sure that the bids have the correct specs you want in each bid.
LoriM15 (Florida)
Posts: 1,009
Posts: 1,009
Posted:
Your documents may have language about this. Ours do. In Florida, all the statute says is that if the contract is going to exceed 10% of the annual budget then you need competitive bids. Doesn't say how many.
In practice, many times you have a preferred vendor or you can't get competitive bids on small projects. We have a pretty big budget, and if we have a project that's under $10,000 or so and we know and trust the vendor or it's hard to find a competitive bid (not a lot of choice sometimes in our area) then sometimes we will award a contract without competitive bids.
Anything larger than that, we try to get multiple competitive bids - at least two. Like I said, sometimes it's difficult in our area.
In practice, many times you have a preferred vendor or you can't get competitive bids on small projects. We have a pretty big budget, and if we have a project that's under $10,000 or so and we know and trust the vendor or it's hard to find a competitive bid (not a lot of choice sometimes in our area) then sometimes we will award a contract without competitive bids.
Anything larger than that, we try to get multiple competitive bids - at least two. Like I said, sometimes it's difficult in our area.
ElleN (Idaho)
Posts: 1,339
Posts: 1,339
Posted:
Quote:
Posted By LoriM15 on 03/19/2025 7:45 AM
Your documents may have language about this. Ours do. In Florida, all the statute says is that if the contract is going to exceed 10% of the annual budget then you need competitive bids. Doesn't say how many.
Your documents may have language about this. Ours do. In Florida, all the statute says is that if the contract is going to exceed 10% of the annual budget then you need competitive bids. Doesn't say how many.
For an FS 718 condo association, the magic number for when competitive bids are required is 5% of the annual budget.
I do not see anything in the Connecticut condo or common interest community statutes that is relevant.
MarshallT (New York)
Posts: 414
Posts: 414
Posted:
I've never come across state laws for bid requirements. I think in most cases, 2 is the minimum, but 3 bids is a best practice.
MarshallT (New York)
Posts: 414
Posts: 414
Posted:
I've never come across state laws for bid requirements. I think in most cases, 2 is the minimum, but 3 bids is a best practice.
DeanJ
Posts: 1,786
Posts: 1,786
Posted:
Absent state law or CC&Rs, policy for bid procurement is at the pleasure of the board and the board may accept a bid from any vendor they chose regardless of lower bids received.
TamaraG7 (Florida)
Posts: 35
Posts: 35
Posted:
FL 720 >10% of budget requires multiple bids; more than one is required. A vendor who does not reply to an RFP is considered a bid.
KcG1 (North Carolina)
Posts: 11
Posts: 11
Posted:
Good point. Specking the work - for apples to apples comparison and to meet expectations is really important.
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