HOAleader.com - Tip of the Week - November 11, 2011
Published: Fri, 11/11/11
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Bidding Out HOA Work? RFPs Make the Job Easier and Save Money
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In this week's tip, we lend a hand to an HOAleader.com reader.
He says he's sent a request for proposal to six homeowner
association management companies to rebid his HOA's current
contract, and he'd like to know the process his board should
follow in reviewing the bids and awarding the contract.
"The custom in this area is that the management company will
submit a proposal that states what it's going to do," says
Robert Galvin, a partner at Davis, Malm & D'Agostine PC in
Boston who specializes in representing condos and co-ops. "It
won't say, 'We'll manage the association.' Instead, it should
say, 'These are the reports we'll provide each month. When we
send notices, we expect to be reimbursed this amount for
postage. We'll come to one meeting without charge, and for
meetings other than that, we'll be paid X dollars.' It's
usually pretty specific."
But bids may not be that specific without your board's guidance
up front. The key to success in evaluating bids and awarding a
management company contract is setting the groundwork. To be
sure you're comparing similar bids, create an RFP and ask
management companies to price out all the important
responsibilities you expect them to handle. That may include
things like how many meetings they'll attend each year and
whether they charge a fee for each letter sent to an owner.
"You can create your own RFP," says Galvin. "Otherwise, you'll
be comparing apples and oranges. One company might have a lower
fee, but it might not be sending a manager to meetings. It's
usually not a problem to compare bids, but if it is, you can
make up specifications that state things like: Manager will
come to one meeting a month and provide these reports each
month. But most boards don't do that."
But some boards do, and not just with management but for all
vendor contracts. "We really try to get with the board and set
parameters initially," says Chris Yergensen, senior vice
president and corporate counsel of RMI Management, a Las
Vegas-based company that manages about 300 condo association and
HOAs. "Some of our larger clients have done so many RFPs that
they've got a process."
Learn more about the RFP process, and find out why Galvin says
it's smart to call in experts when you're doing RFPs, in our
new article: http://www.hoaleader.com/members/646.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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How to Create an HOA RFP and Evaluate Responses
An HOAleader.com reader has asked for some help. He says he's
sent a request for proposal (RFP) to six homeowners association
management companies to rebid his HOA's current contract, and he'
d like to know the process his board should follow in reviewing
the bids and awarding the contract. Here, our experts provide
some guidance.
Click here to read full article:
< http://www.hoaleader.com/members/646.cfm >
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How Strong Are Your HOA Owners' Privacy Rights?
In this week's tip, we help you determine whether to strip search
your residents. OK, maybe that's too strong. But we do offer tips
on how intrusive you can be when it comes to "searching" owners.
Click here to read full article:
< http://www.hoaleader.com/public/645.cfm >
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How Intrusive Can You Be with HOA Owners?
A HOAleader.com reader reports that his HOA is requiring that
owners allow coolers to be searched for glass when they enter the
pool because of the "no glass container" rule. He contends this
is an invasion of his privacy.
Click here to read full article:
< http://www.hoaleader.com/members/644.cfm >
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4 Arguments to Combat Short-Term Owners' Resistance to Long-Term
HOA Planning
It's an all-too-common problem at HOAs: Owners who don't plan to
stick around for more than a few years will resist or oppose
repairs, improvements, and reserve funding that benefits later
owners. What's the best argument for showing short-termers that
they're harming their own financial interest?
Click here to read full article:
< http://www.hoaleader.com/members/643.cfm >
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