Many contractors serving the HOA industry spend an undesirable amount of time submitting free estimates for jobs that will likely be awarded to other vendors. Associations may incorrectly believe that this service has no cost attached. Over the course of a year, however, these costs with no return can be substantial, and it’s the client who ultimately picks up the tab for it.

The predominant mindset for most associations with regard to contractor selection is to request a minimum of three proposals. In most cases, the least-expensive proposal is looked upon favorably.

Association oversight of maintenance and repair generally falls into the hands of volunteers and community managers with heavy workloads and little time or expertise to develop long-term maintenance systems. Because of these circumstances and the maintenance volume falling under one oversight umbrella, it’s no surprise that most associations fall short of a systemized program that is well planned, well executed and well administered.

Surely this would be an aspiration for everyone in the industry. Associations replacing contractors on a regular basis may have difficulty achieving this goal. With most communities subject to limited oversight, the selection of a lesser-known, lesser-priced contractor may not be the best option.

The HOA industry has an undesirable history of under-qualified vendors being awarded contracts. The small savings in selecting less-qualified vendors can and often does get surpassed quickly by short- and long-term losses resulting from poor quality work. Many associations have a tale to tell about repairs, large and small, that had to be done a second time to meet quality and safety benchmarks. Selection of companies with a track record of consistency, reliability, quality and integrity should take precedence over a contractor presenting a lower price.

The concept of a long-term association/vendor relationship is an appealing one. The single most disturbing aspect of an association’s corporate record-keeping function is the fact that no one generally knows who did what and when it was done. This inability to track maintenance coupled with insufficient oversight results in little or no accountability for vendors who have done poor work. In this age of computerized tracking capability, an association’s lack of systemized knowledge with regard to past maintenance is particularly disappointing. This is an area where significant improvement can be made by associations. A tight management system, accurately tracking all repairs and associated costs, can give communities much-needed information for future budgeting and reserve study projections. Furthermore, it would provide the board of directors with the means to ensure greater accountability for work performed in the past.

Generally it’s a contractor who is requested to further investigate a problem called into community management by a homeowner. Association leadership is putting its trust in contractors to correctly assess, diagnose and provide a corrective scope of work and cost for the community. Will the contractor write a corrective proposal addressing the cause of problem? Or in the self-interest of being low bidder, will the scope of work be written to rectify the symptom only? Will the written scope of work suit the expertise and labor availability of the contractor or the best interest of the association? Will the contractor’s price reflect the true value of the work or will it reflect how much or how little desire he has for the job? It would be very difficult for a board of directors to answer these questions with an unknown vendor. Character traits of a service provider will surface over time, and this will benefit community leadership with decision-making.

Tracking repair and maintenance activities on spread sheets should be done by contractors. Avoiding endless low-bid job searches, contractors could spend time on this and other constructive endeavors. Establishing a long-term proactive maintenance and tracking plan for the association could be achieved.

Can associations expect capable contractors to stay interested in their needs and continue to submit proposals after a pattern of non-acceptance has been established? Or will capable contractors be attracted to associations with an understanding and acceptance that successful business is conducted through relationships of trust and platforms of consistent and quality service?

How challenging is it for a community manager to collect three qualified bids in a timely manner for communities that have a history of multiple contractor use and request of low bid pricing? How demanding is it for a volunteer board to dissect multiple bids on tasks they are likely to have little or no expertise?

Many vendors who have been put in a position of responsibility and trust will make an extra effort to put forth accurate estimates, ensuring work is done on time and material basis is executed diligently and with conviction. The team environment will bring out the best in everyone and will lead to cohesion and a shared goal by all parties.

Efficiencies and cost savings will be just some of the benefits available to the contractor and board of directors with stable, longer-term planning. These cost savings can go directly to the association’s bottom line.

An understanding and partnership between parties will minimize dispute and attorney involvement. The relationship should be built and nurtured carefully with both sides comfortable that long-term trust and compatibility is possible.

Achievement of this will be a constructive step forward for everyone!

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Author : Angus Smith
Company : Angus Smith Construction
Angus Smith is the owner of Angus Smith Construction.

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