Questions a Board Should Ask Before Voting on a Contractor
The EstimateHawk TeamOct 23, 20268 min read
A board vote on a big repair often comes down to the price on the first page. The questions below are what turns that price into a decision. Send them to every bidder by email, ask for written answers, and keep the answers with the bids. A written answer can go into the contract. A verbal one usually cannot.
About the scope
Does your price include everything in the scope we sent? If not, what is left out?
Which items are "by owner" or "by others", meaning the association pays?
Are there allowances in the price? What happens if the real cost is higher?
What happens if you find hidden damage, such as rotten decking or corroded pipe? What is the price per unit?
Who pulls and pays for permits and inspections?
Is disposal of old materials included?
About the price and payment
How long is this price good for?
Is there a clause that lets the price rise if materials go up?
How big is the deposit, and when is it due?
What is the payment schedule? Is each payment tied to finished, inspected work?
What do you charge for extra work, and how is it approved before it starts?
Will you provide lien waivers from your suppliers and subcontractors with each payment?
About the company
What is your licence number?
Will your certificate of insurance name the association as additional insured?
Do you carry workers' compensation for everyone on site?
Which parts of the job will subcontractors do, and who are they?
Can you give us two or three buildings like ours you finished recently, with a contact?
Who will be on site day to day, and who do we call with a problem?
About the schedule and residents
What are the start and finish dates, and will you put them in the contract?
What are your working hours? Any weekend work?
How will residents be notified before work near their units?
Where will you stage materials and park, and what areas will be closed?
How will you protect units, cars, landscaping and common areas?
What is the daily cleanup? Do you sweep for nails?
About warranty and closeout
How many years is your workmanship warranty, and what does it cover?
Is there a manufacturer warranty, and will it be registered in the association's name?
Who do we call for a warranty problem, and how fast do you respond?
Will there be a final walk-through with the board or manager before the last payment?
What documents do we get at the end: warranties, permits, final lien waivers, product data?
Questions the board should ask itself
Some of the most important questions are not for the contractor at all.
Does any director, or the manager, have a relationship with a bidder? Is it recorded?
Do our governing documents or state law require competitive bids, owner approval or a special vote for a job this size?
Do we have the money: reserves, an assessment, or a loan?
Are we comparing bids for the same work, with the gaps priced in?
Did every bidder answer our questions in writing?
Who signs the contract, and has the association's attorney seen it if the job is large?
Keep it on paper
Put the questions, the answers and the comparison in the board package and attach them to the minutes. If an owner asks later why the board chose this contractor, the record answers for you.
Put this into practice
Taking bids to the board?
Upload 2 or 3 bids for a free check of the price gap and what each one leaves out. The $9 report adds a one-page board summary with the page each fact came from.
01What should a board ask a contractor before voting?+
What the price includes and leaves out, how hidden damage is priced, the deposit and payment schedule, licence and insurance naming the association, references from similar buildings, dates, resident protection, and the workmanship and manufacturer warranties.
02Should contractor answers be in writing?+
Yes. Send the questions by email and keep the written answers with the bids. Written answers can be added to the contract.
03What should the board ask itself before a vote?+
Whether anyone has a tie to a bidder, whether the documents or state law require bids or owner approval, whether the money is there, and whether the bids were compared for the same work.