Streamlining the Bidding Process: Tips for HOAs
Many community associations make the mistake of calling three companies, obtaining three proposals, and selecting the lowest bidder. Although this approach appears straightforward, it often overlooks crucial aspects of the bidding process. Opting for the cheapest vendor can sometimes result in subpar outcomes. While keeping costs reasonable is essential, other factors like experience, qualifications, certifications, reputation, and communication merit careful consideration during vendor selection.
The solution lies in refining the vendor selection and bidding procedure. By standardizing processes and prioritizing critical factors, communities can reduce challenges and enhance outcomes. What are the steps to streamline this intricate process? For communities with professional management, consulting the property manager for advice and support is advisable. Here are five expert-recommended guidelines to help you get started:
1. Invite the right companies to bid
Contractors provide a vast array of services, complicating the selection process. Construction companies illustrate this point well. Some firms offer comprehensive design/build services, while others focus solely on design, necessitating the hiring of a building contractor. Alternatively, selecting a construction manager as the main vendor could mean they assemble a team for the job. Regardless of the chosen route, ensure that all bidders submit proposals for the same scope of work. Comparing a design-only bid to a design/build package is challenging. A seasoned property manager can provide essential guidance.
2. Come on over
Prospective vendors should visit the community to understand project needs firsthand. Arrange individual walk-throughs with the community association manager and each contractor. These site tours allow vendors to ask questions that may impact the project's scope and enable associations to pose their inquiries. Moreover, these visits provide a chance to become familiar with potential candidates and observe the rapport that develops.
3. Get your docs in a row
Request specific documents from prospective vendors during the solicitation of bids. Ensure all companies provide the same type of documents for comparison and assessment. These documents should include lists of qualifications, prior experience, past projects, subcontractors, and certifications. Conduct thorough research to verify licensing, bonding, and insurance. Request references and contact them. Additionally, check online sources, including social media, for customer complaints, and ensure their legitimacy. An experienced property management team can guide you through documentation and fact-checking processes to minimize risks and liabilities.
4. Focus on more than price
When reviewing bids, resist the urge to choose solely based on the lowest price. Financial prudence is essential, but awarding a contract requires a more nuanced approach. Evaluate each vendor's value by comparing their fees to their offerings. Sometimes, spending a bit more on a high-quality company with invaluable benefits like pertinent experience or an exceptional reputation is worthwhile. Instead of asking, "how much will it cost?," consider inquiries like "how long will it take?" or "will it be done correctly?"
5. Ask for help
The bidding process can be daunting, so seeking support may be beneficial. Technology offers assistance, and a simple web search can reveal multiple bid comparison tools and software to automate much of the bidding process. Additionally, property management companies can offer invaluable guidance and insights, saving time and reducing frustration. Community association managers possess the expertise to ask pertinent questions, consult with suitable prospects, and streamline the process efficiently, allowing you to focus on other association responsibilities.
Managing the vendor selection process is a crucial first step towards accomplishing tasks in your community. At times, though, it can become overwhelming. Following these simple steps helps simplify the bidding process and connect you with the ideal contractor, ensuring successful project completion.
