Bid process

It's a formal process at our HOA.

We generally produce a Spec Sheet (a statement that outlines the exact specifications of the project).

This allows us to develop a spreadsheet with each specification and our minimum requirements for that specification. (Say, we need 13 acres of lawn mowed bi-weekly from April through September, or two plantings of XXX cubic feet of flower bed, once in the spring and once in the fall).

We approach a minimum of 5 vendors (we only go less if the project is something that does not have a lot of vendors in the area, but that's rare).

We give a specific deadline, and if the deadline is not met, the vendor is immediately disqualified.

We then load all the responses into the spreadsheet and code the responses with Vendor A, Vendor B, Vendor C and so forth.

We then have a committee that evaluates the bids and makes the selection.

It's a bit time-consuming, but we tried it the "other" way ("JoeBob's neighbor like to cut grass, and he'll do it right cheap. . ." ) and that didn't work out so well. . . .

What you have to watch out for is "low-balling."

A vendor will give an inordinately low bid, compared to the other bidders.

Or a vendor will claim to provide X service and Y service in addition to the specifications on the spec sheet.

If the "extra" service is something you would like, then be fair and give the other vendors the opportunity to re-bid with that alteration.

Sometimes, besides the low-ball, vendors use that as a hook, and may not really be giving you completely what you want in your spec sheet just to get in the door.

Dear Sussana: What statute applies in Florida?

Keep in mind, neither our HOA governing documents nor our state or local statutes or ordinances require formal bidding, whether 2 bids or whatever.

It just simply makes good business sense to do it formally, and to make it fair.

While some statutes and docs may specify a minimum process that must be followed, establishing a due diligence bidding policy and process is, in my opinion, a basic "best practice" for any organization, HOA, or otherwise.

John,
Here is entire Statute on bids. I hate posting long answers but this saves you from looking it up.

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.

(2)(a)1. Notwithstanding the foregoing, contracts with employees of the association, and contracts for attorney, accountant, architect, community association manager, engineering, and landscape architect services are not subject to the provisions of this section.

2. A contract executed before October 1, 2004, and any renewal thereof, is not subject to the competitive bid requirements of this section. If a contract was awarded under the competitive bid procedures of this section, any renewal of that contract is not subject to such competitive bid requirements if the contract contains a provision that allows the board to cancel the contract on 30 days' notice. Materials, equipment, or services provided to an association under a local government franchise agreement by a franchise holder are not subject to the competitive bid requirements of this section. A contract with a manager, if made by a competitive bid, may be made for up to 3 years. An association whose declaration or bylaws provide for competitive bidding for services may operate under the provisions of that declaration or bylaws in lieu of this section if those provisions are not less stringent than the requirements of this section.

(b) Nothing contained in this section is intended to limit the ability of an association to obtain needed products and services in an emergency.

(c) This section does not apply if the business entity with which the association desires to enter into a contract is the only source of supply within the county serving the association.

(d) Nothing contained in this section shall excuse a party contracting to provide maintenance or management services from compliance with s. 720.309.