Selecting a vendor for your property needs may not be as simple as you think. There are many prerequisites that need to be reviewed prior to hiring any vendor.

The first consideration is to determine who will complete the task. Can the project be completed by in-house staff, or do you need outside help? When making this decision the following items should be addressed:

1. Do you have adequate staff to do the job?
   
   
2. Will it take away from their other duties?
   
   
3. Does your in-house staff have the necessary qualifications?
   
   
4. Do you have adequate supervision?
   
   
5. Is there time to complete the work immediately?
   
   
6. If the work is done in-house, is it your least expensive option?
   
   
7. Do you have the necessary license(s) and (permit(s)?
   
   
8. Do you have adequate insurance coverage for the job?
   (liability, workers compensation, vehicle)

After reviewing these considerations, the Board can determine whether or not to hire an outside vendor. In the event the Board determines to hire an outside vendor, there are procedures they should follow:

1. Prepare thorough and accurate bid specifications an announcement that you are interested in receiving proposals for a particular job.
   
   
2. Prepare a complete Request for Proposal (RFP), - The Board may consider using an engineer, architect, or supplier to write adequate specifications.
   
   
3. Identify potential contractors, usually 5 to 6 bids need to be sent out, some contractors may not submit a quote.
   
   
4. Evaluate all bids received (set up a comparison chart), make sure all references and insurance certificates are checked.
   
   
5. Interview selected candidates, review contract provisions.

When reviewing contract provisions with the candidates, review with them the scope of the work to be performed by the contractor, compensation, time period as to when the job will start and finish and if there is to be a contract provision if the contractor misses the deadline. Other items to review would be a standard of performance, warranty, restoration if contractor damages the property or buildings, indemnification clause holding the Association harmless, insurance requirements, licenses and permits for the project, termination with or without cause, default of the contract, and any financial protection for the Association such as a Performance Bond, Payment Bond or Waiver of Lien.

I would hope that it would go without saying, that the revised vendor contract should be reviewed by the Association's legal council before signing. Last but not least and contrary to what you may have heard, final bids are negotiable, and low bid is not always the best vendor to pick.