Real Estate & Property Law

EVALUATING VENDORS FOR HOAs and CONDO ASSOCIATIONS INCLUDING MANAGERS

Should the HOAs and Condo Associations regularly evaluate vendors of the association, or just let them continue to serve until there are complaints or an uprising?

Evaluations at least on an annual basis are as important, in my view, as choosing the right contractor in the first place. This is for at least these reasons:

(1) It provides the contractor, the board, and manager the opportunity to speak with each other about job performance, any gripes or concerns, and any other matters that may have arisen (such as owner harassment or use of contractor, etc.).

(2) It tends to resolve issues and diffuse differences if any have arisen between the parties, and to pave the way for a smoother year in working together.

(3) It tends to remind the board and vendor that renewal of the contract is important, so that the parties are not lingering without the benefit of a contract and a clear understanding of the terms and obligations.

I once suggested to a manager who was fumed about a board?s request that the manager submit to a formal ?evaluation? after the owners had been polled about satisfaction with the management that I thought it was a good idea, for both parties. The seemingly defensive posture indicated to me some concern that the manager either was expecting very bad comments or was suspecting the board might be looking for a way to get out of the contract and simply did not want to be confronted. However, the truth is that the dragon you see is much less dangerous than the one that is lingering in the cave behind you. In other words, you can better deal with issues that you can see than those that you can?t see coming. Anyway, Boards should, in my view, have some vendor evaluation processes in place.

Waiting until there is a fire to put out (burning differences) or restlessness among the "natives" (owner members) does not work well.

You can find out much more about choosing vendors, managers, and others to serve the association in a new Primer (available soon on the condoguru website, in the webstore and on the publications page) which contains information on all aspects of choosing, contracting with, and evaluating vendors and managers, and which includes a sample Resolution that a board could use as a basis for evaluating vendors and managers.

Full post as published by California Condo & HOA Law on August 26, 2009 (boomark / email).