Competitive Bidding

  • Posted Date: 01/22/2014 I believe HOA’s have a fiduciary obligation to engage in REAL competitive bidding, especially for the (expensive) landscaping and management contracts.  This means (a) establishing a clear set of contractual requirements, (b) seeking out and providing these requirements to no fewer than three potential companies (contractors); (c) identify key decision makers within the potential contractors, SIT DOWN WITH THEM PERSONALLY, review the requirements, and encourage them to submit bids; (d) decide, from among the acquired bids, which potential contractor is “best” for the HOA, comparing “apples to apples”.  It’s not always true that the lowest cost bidder is best, but frequently it is. It’s my opinion this common, professional process, routinely followed in business and industry, is rarely followed by HOA boards of directors. By: Neil Hendricks

Admin comment:  As a retired professional in large corporation purchasing and material management, I am appalled at the rank ignorance of Boards and management about their fiduciary duties, the lack of professionalism and the contempt shown homeowners by Boards of Directors and management.

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