THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, January 27, 1996 TAG: 9601250309
SECTION: REAL ESTATE WEEKLY PAGE: 20 EDITION: FINAL
COLUMN: Common Ground
SOURCE: G. Robert Kirkland and Michael A. Inman
LENGTH: Medium: 81 lines
As a board member I am concerned that we spend the money wisely. When should we bid work and when is it OK to just call a contractor?
Should the manager chose the contractor or should the board? What should we do to make sure that we are getting the most for our money?
The best way to answer your questions is take them in reverse order. First, the standards that should be applied to every contractor are the same.
He must be a licensed business and if required have a state contractors license.
He must have liability and workmen's compensation insurance and provide you proof that it is current.
He ought to provide you with at least five references that you can call and inspect the quality of the work.
He should provide for a specific penalty for nonperformance.
He must define the work in measurable terms. A description such as cut the grass is open to more interpretation than cut the lawn once a week to a height of two inches, trim the edges and remove the debris.
If the contractor is using subcontractors he needs to provide you proof of all the above and mechanics waivers showing the subcontractor has been paid.
As to the manager choosing the contractor, the answer is absolutely not. While the board may delegate authority to the manager to oversee the contractor, it is ultimately the board that is responsible for the contractors performance.
The board should look for ways to maximize the number of bids received. This will help you find the best price and the best contractor. Managers are not universal experts and it is important to use other resources when necessary.
When you are going to do major work such as repainting the exterior or replacing the roof, you need the assistance of qualified engineers or architects to write the specifications. When you are redoing the grounds call a landscape designer or architect to assist.
The manager is, as the title implies, the one who gets things one. But managers are not architects, engineers, accountants and attorneys all wrapped into one. Be kind to your manager and give yourself and the manager the assistance you need.
One other resource of information for the board can be Builders-Contractors Exchange or the Association Contractors Exchange. Both of these groups provide ways to put out bids to large numbers of potential contractors.
As to when to bid the work and when to simply call the contractor, it is a matter of judgment, but we use the rule, ``If it is not an emergency then think about bidding.''
Obviously when there is an emergency, you do not have the time to go through the bidding process. Also many items such as replacing light bulbs or making minor repairs are better handled without the bidding process.
But even in the case of the handyman, it is important that the association have a contract or employment agreement to prevent misunderstandings and disputes. A handyman working for cash may become a major insurance problem if he is injured on the job or a tax problem if you are not collecting and paying taxes and Social Security.
Generally we believe that all expenses over $3,000 should be bid. The following contracts should always be bid: painting, roofing, landscaping, recarpeting, structural repairs, pool operations, repaving, building additions and management.
The board should adopt clear guidelines on bidding. These should include when to bid, specification standards and the bid process itself including the timing and who is to receive bids and how.
These topics and many others will be covered at the Southeastern Virginia Chapter of the Community Association Institute's ``Community Association Day'' on March 2. Call 464-3009 for more information. Your authors have agreed to hold a short session for live questions and answers. We hope to see you there. MEMO: G. Robert Kirkland, president of a Virginia Beach property management
consulting firm, and attorney Michael A. Inman specialize in Virginia
community association issues and are affiliated with the Southeastern
Virginia chapter of the Community Associations Institute. Send comments
and questions to them at P.O. Box 446, Virginia Beach, Va. 23458. To
submit questions by phone, call 486-7265; by fax: 431-0410.
by CNB