Important Community Management Tips To Help You Organize Your Contractor Bids
As an HOA board member, it’s important to ensure that maintenance and renovation projects are handled with care and efficiency. Going about a renovation the wrong way can result in inconvenience for homeowners, wasted community funds, and lower resident satisfaction.
That’s why hiring the right contractor is crucial. However, choosing the right contractor can be a daunting task, especially when it comes to managing multiple bids. If you’re in the process of collecting contractor bids for a new project, here are a few community management tips to help you organize them and make the right choice.
How Many Contractor Bids Should Your HOA Get?
Most HOAs know that you should collect more than one contractor bid so you can compare your options. However, it can be more difficult to determine exactly how many bids are enough. Ultimately, there’s no one-size-fits-all answer, and how many bids you’ll need will depend on the scope and complexity of the project. If a project is simple and straightforward, collecting two or three bids would be sufficient. However, if a project is more complex and requires multiple contractors, it may be beneficial to gather more bids to ensure you’re getting the best pricing and quality of work.
Some states also require a minimum number of bids to be collected, so make sure you take local laws into consideration when collecting your contractor bids. For example, Nevada requires a minimum of three bids if the cost of the service is more than 3 percent of the HOA’s annual budget. Your community’s bylaws may also dictate how many bids you need to obtain, so make sure you work with your HOA management company to uncover any requirements and abide by them during the process.
Do All Projects Require HOA Contractor Bids?
A common misconception is that all projects require bids. However, this is not always the case. Projects that require specialized skills or expensive materials will benefit from obtaining bids from multiple contractors. However, smaller projects such as minor repairs or routine maintenance may not warrant a bidding process.
Another factor to consider is the size of your HOA. Larger HOAs may have more resources and flexibility to obtain multiple bids, whereas smaller HOAs may struggle with the time and effort involved in collecting bids. If your HOA board is struggling to find the resources to collect multiple bids for a project, consult with your community management firm to see how they can help shoulder some of the responsibility.
What Should Your HOA Consider Before Collecting Contractor Bids?
Before jumping into the bidding process, there are important factors that HOAs should consider to ensure a smooth and organized process. First and foremost, your HOA should clearly define the scope of the project. This will help contractors provide accurate bids and avoid any confusion during the project. Additionally, you should establish a timeline for the project and communicate it clearly to potential contractors. This will help them plan their schedule accordingly and ensure that the project is completed in a timely manner.
When considering your timeline, make sure that you include ample time for your board to collect and assess your bids. Once you’ve determined your desired start date for the project, make sure to start collecting bids with plenty of time to spare, giving your board enough time to review their options and giving the contractor enough time to free up their schedule.
Finally, make sure that your HOA has an adequate budget for the desired project. Don’t wait until after contractors have submitted their bids to secure funding. Ensure that the funding is in place before reaching out to request bids and get the project started.
If you want to streamline the process of hiring contractors for your community association, a professional HOA management firm like The Management Trust can help. Our Trusted Partners program makes hiring community contractors simple and hassle-free. It offers a reliable source for high-quality vendors that are pre-vetted and assured to get the job done well. We even provide a $2,500 client satisfaction guarantee for work performed by our enrolled vendors, and we have full contractor liability insurance coverage.
With more than 30 years in the industry and over 1,500 communities successfully managed, we have the expertise to guide you in all aspects of community association management, including contractor sourcing. To find out more about our comprehensive HOA management services or our Trusted Partners program, contact The Management Trust today.
