Conflict of Interest (Contractor Selection)

Started by VL2 • 4 replies • 107 views

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VL2
Posts: 2

Posted:

Conflict of Interest (Contractor Selection)

The Board has appointed a Property Management Co. for the Association, and the latter has an Affiliate Maintenance and Construction Co. Due to water damage in our unit, the Insurer for the Association has reimbursed the Association for the claim. The Board is insisting that I use the Affiliate Co. to do the repair/reconstruction, and the ByLaws do not give them that authority. The Board has not entertained any other bids.
Thank You!

TimB4 (Tennessee)
Posts: 21,061

Posted:

I would think that if you asked to use a contractor of your choice but limit the amount refunded/paid by the Association to that which the insurance has agreed to pay would be accepted.

Another option would be for you to make a claim against your insurance company, have them pay for it with a licensed contractor they approve and let the two insurance companies figure out who will pay for what. You may have to pay your deductible which you might have the Association reimburse you for.

Check with your insurance company and, if need be, an attorney to verify these options.

DeanJ
Posts: 1,786

Posted:

When a claim was made to the HOA Insurance, a professional adjuster (totally independent of the board, the management company and the contractor) was assigned and he determined the damage was the HOA’s responsibility, evaluated the damage and issued a settlement using comps for labor and materials in your area.

If the contractor selected by the board (which may be very qualified and specialized to repair water damage) will perform the work for the settlement, what exactly is your complaint?

MichaelS56 (Minnesota)
Posts: 859

Posted:

Does Connecticut have a state law pertaining to Conflict of Interest? Minnesota does.

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Quote:

Posted By VL2 on 04/07/2025 7:14 AM
Conflict of Interest (Contractor Selection)

The Board has appointed a Property Management Co. for the Association, and the latter has an Affiliate Maintenance and Construction Co. Due to water damage in our unit, the Insurer for the Association has reimbursed the Association for the claim. The Board is insisting that I use the Affiliate Co. to do the repair/reconstruction, and the ByLaws do not give them that authority. The Board has not entertained any other bids.
Thank You!

If "Affiliate Maintenance & Construction Company" will perform a quality job for the amount of the insurance check - and you're already overseeing them as a property management vendor - I'd let them proceed and finish the repair. I think they'd be the most efficient option for the price and you'd be made whole from that leak.

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