Project Bids

Started by DeniseA1 • 6 replies • 1392 views

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DeniseA1 (California)
Posts: 19

Posted:

Is there any official association rule/law governing the number of bids required for construction/mold remediation work/landscaping, etc.? I served on our Board in the late '80's and was recently elected to serve on our Board again. As I recall, the Board I previously served with always obtained three (3) bids before making a decision and entering into any contract. I thought this was a law in California, but I may be wrong. Anyone know?

GeraldT4
Posts: 1,022

Posted:

DeniseA1 - I don't believe there is a law in California Davis Sterling Act that requires a minimum number of bids. However, good business judgment and basic common sense reveal that an apples to apples bid comparison by the Board from at least 3 contractors is wise.

MicheleD (Kentucky)
Posts: 4,491

Posted:

I agree with Gerald.

We have no such mandate in either our HOA documents or our state or local laws requiring a minimum number of bids.

However, our standard business practice has been to obtain no less than 3. Sometimes we've received as many as 5.

JaneK (California)
Posts: 175

Posted:

It would fall back on the ‘BUSINESS JUDGMENT RULE’
The board must do everything to insure that everything done is in the community’s best interest and with the care an ordinarily prudent person in a like position would use under similar circumstances See http://www.davis-stirling.com/index.html regarding this.

No law, but they could be in trouble for not getting at least three bids.

Jane

SusanW1 (Michigan)
Posts: 5,202

Posted:

I'd say it depends on the amount of the contract.

Our biggest problem is getting the bids. Some smaller companies don't like to take the time to type out a formal bid. They will give it to you verbally.

The larger companies ususally have staff that can do bids.

If the membership has to approve the vote for the project, I'd say be sure and get bids.

JaneK (California)
Posts: 175

Posted:

Susan,
True, we have a couple of regular handymen companies that are automatically called to take care of smaller problems. For the biggies, better get at least three bids.
Jane

DeniseA1 (California)
Posts: 19

Posted:

Thank you all who responded. Your answers were all a great help!

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