Certain contracts entered into by condominium, cooperative and homeowners’ associations require competitive bidding. These requirements are found in Section 718.3026 of Florida’s Condominium Act, Section 719.3026 of Florida’s Cooperative Act, and Section 720.3055 of Florida’s Homeowners’ Association Act (collectively the “Acts”).
Competitive Bidding… A Primer for Board Members and Managers (FL)
Certain contracts entered into by condominium, cooperative and homeowners’ associations require competitive bidding. These requirements are found in Section 718.3026 of Florida’s Condominium Act, Section 719.3026 of Florida’s Cooperative Act, and Section 720.3055 of Florida’s Homeowners’ Association Act (collectively the “Acts”). Read the article…………………………….
Vendor Contract Essentials: How Community Associations Can Avoid Costly Mistakes
As spring approaches, community association boards are gearing up to tackle long-awaited projects—from landscaping improvements to major repairs. While selecting the right vendor is a critical first step, having a well-structured contract and a strong management strategy can make all the difference in ensuring a smooth process and avoiding costly mistakes. From choosing reliable contractors […]
Dollar Limit for Unlicensed Contractors Increased (CA)
Under prior law, unlicensed individuals could perform construction work if the total cost of labor, materials, and other project expenses did not exceed $500. Under AB 2622, the threshold was raised to $1,000, effectively allowing unlicensed persons to handle more small jobs without violating the California’s Contractors State License Law.
Selecting a Vendor for Your Community Association (NC)
Selecting a vendor for a project or professional service is one of the more important duties of the board of directors in a homeowners or condominium association. It is one of the areas where the board must exercise its best business judgment. Read the article…………………………….
Can Homeowners Vote For A HOA Contractor?
Can you allow homeowners to vote for an HOA contractor? This is a question many HOA boards face, especially during large projects that require significant funds. While the HOA board is typically responsible for selecting contractors, there are scenarios where homeowner input becomes necessary. Regardless, board members should prioritize transparency in all business decisions. Read […]
5 Essentials for Any Service Contract at your HOA
As board members of a homeowners association, you ensure that maintenance and security services are provided in the community area. While hiring each service member individually is possible, contracting third-party service providers to handle the work ensures quality service at a lower cost. Read the article…………………………….
Finding Common Ground
My job as a designer involves the traditional roles of an interior designer, but another aspect is playing the role of psychologist or therapist. So much of the job involves listening to clients and deciphering the design issues at hand, and that boils down to understanding the clients’ needs and ultimately finding ways to meet […]
Working with Your Community Association’s Professional Team: Management, Insurance Agent, Legal Counsel, and More
Effective collaboration and communication with your professional team is vital for the smooth administration of a condominium, homeowner (HOA), or townhome community association. From day-to-day management to long-term strategic planning, board members must work with a variety of professionals to maintain the community’s property, finances, and legal compliance. Read the article…………………………….
When Experts Chime In: Can HOAs Afford to Tune Them Out?
An HOA receives an engineer’s report warning that a retaining wall on the property is on the brink of failure. The board, focused on other issues and keeping dues low, decides to put the report on the back burner. After all, the wall looks fine from a distance, right? Fast forward a few months, and […]
SECO president to explain controversial (light) pole rental increases (FL)
The president of the SECO Energy Board of Trustees will speak to the Property Owners Association about increases in pole rental rates which angered many officials in The Villages…..Earlier this year, community development district supervisors in The Villages were outraged when SECO suddenly announced pole rental rate hikes that would have increased by hundreds of […]
Florida Courts Disagree on Contractor’s License Requirements for Disaster Recovery Tasks
On the heels of a record-breaking three hurricanes making landfall in Florida in 2024 – Debby, Helene, and Milton – disaster recovery is obviously a hot topic as residents and business owners work to recover from the financial and physical damages that the storms have left behind. Read the Q&A………………………………..
Contractors’ Insurance: Basic Coverage Provisions to Consider Including in Contracts
Time after time we have seen associations receive a one-page form contract or proposal from a contractor for thousands of dollars in work or services. Even if the job seems quick and simple, there is risk when a party is doing work on association property. Appropriate insurance coverage is necessary to mitigate that risk. Unfortunately, […]
Bidding Checklist
In every bidding situation, consider the following issues: Has the board defined its goals and objectives in this bid process? Are there any bidding requirements in the Association’s governing documents that the board should follow (i.e., a requirement to obtain at least 3 bids)? Read the article…………………………….
Unlicensed Work Does Not Void Contract With Condos, Florida Appeals Court Says
Being unlicensed as a contractor in Florida does not necessarily void a storm-remediation contract, a Florida appeals court said in a decision that could affect insurance defense strategy in hurricane claims. “This shows that it’s really important to know the scope of work being performed,” said Josh Beck, an insurance defense attorney in Boca Raton. […]
How to Create an RFP for HOA Management Services
Do you want to know how to choose the right management company for your HOA? Keep on reading, then. You know – I don’t think there’s any point in sugarcoating this – Having to select a new management company is hardly a task you’d welcome with excitement. In fact, unless you’ve done it before, you […]
Managing Vendor Agreements in Your HOA
Taking an active role in your community is an essential function of being an HOA Board Member. General maintenance and upkeep can include projects like gardening, repairs, cleaning services or other handyman tasks. Managing these vendors can feel like a daunting task, especially if you are new to hiring vendors and reviewing contracts. To ensure […]
Tools of the Trade: HOA Board Project Planning and Hiring a Professional Vendor
The first responsibility of the HOA board when beginning any project in a non-profit corporation such as a homeowners association is to avoid any conflicts of interest while planning the project. In community associations, each board member is considered a fiduciary and is duty bound to act in the best interests of all residents, not […]
The Dos and Don’ts of Managing HOA Vendor Contracts
Many HOAs rely heavily on vendors to ensure the smooth operation and maintenance of a community. Managing HOA vendor contracts is a crucial role for HOA board members, and one that comes with a steep learning curve. Communicating with service providers can take time, finesse, and no small amount of energy. It can be an […]
New Coalition Launches to Champion the Bulk Billing Arrangement Model for Internet Services
Today, EducationSuperHighway, the Community Associations Institute (CAI), the National Multifamily Housing Council (NMHC), the National Apartment Association (NAA), and America’s Communications Association (ACA Connects) launched the Bulk Broadband Alliance (BBA). This Alliance is dedicated to educating the public and policymakers on the important benefits of bulk billing arrangements for broadband and cable TV services and […]
Hiring a Building Restoration Management Consultant and Advocate (FL)
In my forty (40) years of managing community associations, and providing building restoration management services, I have experienced a wide range of repair solutions necessary for many different types of construction due to coastal environment corrosion. The aging of buildings along Florida’s coast lines is not consistent, not typical, each is unique, and all require […]
Association Contracts (FL)
Whether your community association is a condominium, cooperative, or a homeowners’ association, Florida law empowers your association to enter into contracts in connection with the maintenance and operation of the community. Often times, your association is all but required to contract with third parties in order to maintain and operate the community, as it does […]
Association Contracts (FL)
Whether your community association is a condominium, cooperative, or a homeowners’ association, Florida law empowers your association to enter into contracts in connection with the maintenance and operation of the community. Often times, your association is all but required to contract with third parties in order to maintain and operate the community, as it does […]
Condominium Construction Defect Lawsuits: When Sponsors Bring Architects into the Fray (NY)
Condominium boards embroiled in construction defect lawsuits against developers (sponsors) often see a further complication arise: the sponsor bringing in the project architects as third-party defendants. Sometimes the condo can sue the project architect directly but many times the focus is on the developer and its members and they point the finger at the architect. […]
Important Construction Contract Provisions for Major Repairs in Condominiums & HOAs (MI)
The overwhelming majority of condominium and homeowners associations will, at some point in time, need to enter into a large construction contract for a major repair or replacement. Complex construction contracts are more frequent in condominiums, where associations have a much larger number of items that they are responsible for maintaining. However, even smaller homeowners […]
Navigating Dispute Settlements and Business Decisions: A Guide for Community Associations
In the complex realm of managing condominium and homeowner associations, disputes with contractors and other critical business decisions can unexpectedly arise. Successful navigation through these challenges requires proactive measures, clear communication, and careful decision-making. In this guide, we explore how to handle dispute settlements, important business choices, and the significance of release agreements for associations. […]
Construction Contracts: Best Practices and Important Considerations
Your reserve account is finally fully-funded and that pool house is looking shabby. It’s time for a refresh! Maybe you can remove that ancient, dead tree while you’re at it. Before you hire a contractor to perform work in your community – be it major or minor – it’s important to make sure that you […]
When to File a Breach of Contract Lawsuit or How Long is Too Long? (CO)
The Colorado Supreme Court recently issued a decision that significantly impacts common interest communities’ need to enforce contracts by filing a lawsuit or an arbitration proceeding. This decision affects the timing considerations of when such proceedings must be filed. Read the article…………………………….
Homeowner gets bid but does not follow proper procedure (NV)
Q: One of the residents knows a company who provides barrier arm installation and requested we ask the company for a bid, which is totally fine in my opinion. However, the problem stems from the resident bypassing the board and our management firm and directly contacting the company and not having it send the sealed […]
New Law Affects Contractor Retainage for Co-ops & Condos: Add Another Item to Boards’ List of Things to Worry About (NY)
As if New York co-op and condo communities weren’t under enough pressure from sluggish sales, high interest rates, and the ever-increasing volume of work required to comply with environmental requirements like Local Law 97, Governor Kathy Hochul signed a bill into law on November 17 amending Sections 756-a and 756-c of the New York State […]
Tendering for Condominiums (ON)
It is not uncommon that lawyers are asked to review signed contracts from clients after the lengthy tendering process has already been completed. But there are reasons why you may want to involve your lawyer much earlier on in the process and here are the reasons why: Read the article………………………..
What to Do When a Vendor May be Filing for Bankruptcy (CO)
With continued inflation, rising costs of materials, and the volatility of our current economy, we continue to experience financial impacts to community associations, including the impact to an association when one of its vendors decides to file bankruptcy. Read the article……………………….
Helping Your Association With Vendor Management
When working with your community association, vendor management needs to take center stage to ensure the smooth operation of vital services like landscaping, maintenance, and security. Your role as a community member entails overseeing these essential functions. By effectively managing vendors, you guarantee that your community thrives Read the article………………………………….
Navigating the Legal Snowdrift: Ensuring a Solid Snow Removal Contract (OH)
As winter arrives, associations and community association managers must prepare for the inevitable task of establishing smooth and safe snow removal operations. While hiring a professional snow removal service is essential, paying close attention to the language contained in these contracts is equally crucial. Unclear wording can result in legal complications piling up as rapidly […]
HOA Vendors: How To Select Vendors And End Contracts?
Choosing the right HOA vendors is vital to the community’s well-being. But, it can be hard to pick a contractor with the right experience and skills the community needs. Let’s take a look at the selection process to help your HOA choose a fitting vendor. Read the article………………………..
Tips for Negotiating a Contract (OH)
Before entering into a contract, an association has the opportunity to negotiate terms that provide more protection for the community. One critical aspect of contract negotiation is defining the scope of work. It is essential that all parties involved understand what the project entails and how it will be completed. Read the article………………………..
Approving and Signing Association Contracts (OH)
Associations act through their boards of directors. This means that, for an association to take any action, the board of directors must collectively vote to approve that action. As it relates to contracts, boards of directors should vote to approve contracts and document all votes approving contracts in the association’s minutes. The minutes should read […]
Contracts and Community Associations (CT)
One of the items our office is often asked about is entering into contracts. Contracts are generally simple enough to understand. Party A agrees to provide a good or service to Party B. Party B agrees to pay Party A for said good or service. Seems like a simple proposition, so why do so many […]
Common Contract Concerns for Community Associations
Most community associations in Florida operate with the assistance of outside vendors. As such, many community associations do not have in-house staff to pressure wash sidewalks or maintain the elevators. Communities often have a compilation of contracts with multiple vendors ranging from one-page estimates with no contractual provisions other than price, to lengthy contracts with […]
‘People are panicking’: Homeowners fear losing homes after HOA hires unlicensed contractor (SC)
Some homeowners in one Volusia County community are up in arms after they claim their homeowners’ association president hired an unlicensed contractor to work on their buildings. They told Action 9?s Jeff Deal they’re worried about how they will cover the extra costs to finish the job. Read the article………………………..
HOAs Must Understand Use and Power of Contracts
The board of directors in a homeowners association (HOA) is responsible for the functionality and governance of the community. One of the powers and duties delegated to the board of directors is the power to negotiate and enter into contracts, which is highly significant to the operation and bylaws of an HOA. Read the article………………………..
9 Important Questions to Ask Before Signing a Service Contract
A community association protects every homeowner’s interests by maintaining the community’s standards. However, for an association to operate effectively, board members, active homeowners, advisors, and even vendors must work collectively. Read the article………………………..
Requiring Workers’ Compensation (FL)
It is surprising to hear from so many community association board members and managers looking to protect their community association that, when asked if they require all vendors to have workers’ compensation insurance as a required term in all of their contracts, it can be like looking at a deer in the headlights. Read the […]
Contractor Bids For Your HOA: How Many Is Enough?
Do you need to get contractor bids for your HOA? If so, how many bids should you get? And what preparations should you do prior to obtaining the bids? Read the article………………………..
Why Hiring an Unlicensed Contractor is Not an Option (CA)
Everywhere we look, costs are rising all around us. Labor costs, insurance costs, material costs. And for associations, business keeps moving forward. With pressure from homeowners to keep assessments low, and increased requirements being placed on associations contributing to rising costs, associations across the state are looking for ways to keep costs down. Read the […]
Bids vs. Contracts: Warnings and Legal Liability (CO)
We have previously addressed the importance of Associations having proper, legal contracts that protect the Association and how proposals are not to be signed in lieu of contracts, etc. Unfortunately, we are seeing more and more issues with bids & contracts that produce liability for the Association and at times managers. Please note the following […]
Should And Can Homeowners Inspect Contracts With HOA Vendors?
Can homeowners inspect contracts an association has with its vendors? This is a question many HOA boards and homeowners ask. The answer, though, is not as clear-cut as you might think. Read the article………………………..
Association Contracts, What to Look for to Protect Your HOA
HOAs often enter into contracts with contractors and vendors, but these agreements can contain hidden pitfalls that can cause trouble down the road. To ensure that your HOA is protected and avoids any unwanted surprises, it’s important to evaluate each contract carefully before signing. Here are some key factors to consider: Read the article………………………..
Help! We’re Having Difficulty Finding Vendors and the Board Wants to Hire an Unlicensed Painting Contractor (AZ)
I recently received a question at a seminar I was teaching regarding the hiring of vendors. An association was having difficulty finding a licensed and bonded painter to paint the exterior of all the buildings at the association and was considering hiring an unlicensed or bonded painter to do the work. The association was thrilled […]
Condo Smarts: Council must clarify decision-making process for contracting services (BC)
Dear Tony: We are a medium size contractor in British Columbia that provides exclusive services to strata corporations. This includes products, installation, maintenance and emergency calls. Read the Q&A……………………………….