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JoC (Florida)
Posts: 6
Posted:
My HOA does not solicit bids on any of its sevices. We have landscaping services in excess of $750K and about 8 others that are well over $100K. Can anyone guide me to prudent business practices that I could use to help persuade the Board to consider. Our HOA President is a retired judge and things seem to be done his way or the highway!

Thanks
DonnaS (Tennessee)
Posts: 5,671
Posted:

Jo,
I hate to hit you with a long post but you can copy this and show it to the retired Judge/President. He of all people should be able to understand it. This is the entire chapter on 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.

(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.

History.--s. 21, ch. 2004-345; s. 18, ch. 2004-353.

SusanW1 (Michigan)
Posts: 5,202
Posted:
How do you know you aren't in the middle of a 5 year contract?

As a member, you have the right to look at contracts. Be sure that your contracts are, in fact, "up" for bid.
JoC (Florida)
Posts: 6
Posted:
Thanks Donna - vey helpful...
JoC (Florida)
Posts: 6
Posted:
SUsan, I don't know. Our Board shall we say is less than forthcoming. I know I elected them!
PeterB1 (Florida)
Posts: 257
Posted:
Donna is perfectly right in quoting the provisions of FL 720. But maybe a more tangible example would have an impact on those who don't believe in the 'bidding system' - many people till support the 'old boy' system.

We have a large number of trees to be pruned and trimmed (more than 200). We asked for bids from a number of local, qualified people. Included in the request was the removal of a large tree. Since it was a separate line item, I compared the price of that tree removal amongst the 5 bidders. Prices ranged from $650 to $2000.

We have a Board policy that requires a minimum of 3 bids for all expenses over $500.

peter
DonnaS (Tennessee)
Posts: 5,671
Posted:

Peter,
Thanks. Posting that entire section is alot easier than trying to write it out with all of the ifs, ands and etcs. This is one item that many associations NEED to update in their bylaws because of the "good ole boy" system still flourishes.
JoC (Florida)
Posts: 6
Posted:
Thanks Peter. Wow, $500 I am impressed. I am focusing on $50,000 and more, but that is good information to know that others use a $500 baseline.

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