Requirements for Contracts Entered Into by Florida Condominium Associations

Contracting with vendors and service providers is part of the normal course of business for many condominium associations in Florida. Generally, section 718.3026, Florida Statutes provides for certain requirements when an association contracts for products and services. If a contract for the purchase, lease, or renting of materials or equipment, or for the provision of services, requires payment by the association in the aggregate that exceeds 5 percent (5%) of the total annual budget (including reserves), the association shall obtain competitive bids for the materials, equipment, or services. Nothing contained in the Statute requires the association to accept the lowest bid for the products or services. When analyzing the bids for the work, the association can consider such factors as quality of the vendor, responsiveness of the vendor, and any other non-monetary factors. The board members will generally be protected for such decisions under the business judgment rule.      Read the article……………