ESSENTIALS OF EXCELLENT CONTRACTOR RELATIONS for MANAGERS AND BOARDS

How to attain and maintain excellent contractor relations is an important goal for community associations.  I would like to share with you information regarding the steps to take to gather information, prepare your RFP, (Request for Proposal), find qualified contractors and some important paperwork.  If these things are done first, then your chances of a successful relationship with the contractor will be much better.  It’s very important that you treat each contractor the same, whether you know them or not. We need to compare apples to apples for our Boards and ourselves.

Sometimes you will get requests for building maintenance that requires you to go through the process of weighing the pros and cons and conclude that because of the time, cost, tools or equipment, licenses, permits, insurance and storage facilities that a job requires an outside contractor.  By way of example, buildings 5 through 10 in your community need new roofs.  The scope of this roofing project requires an outside contractor.

Remember that this process is for larger and costlier projects like roofing, road resurfacing, painting, landscape maintenance and snow removal. The time you spend will be well worth it because you will reap the benefits as the project or service unfolds or is completed.

The first thing you want to do is gather information:

1.      Survey the area where the work is to be done

2.      Outline the work to be done

3.      Specify the materials to be used

4.      Set a realistic deadline for completion  

Prepare your bid request or Request for Proposal RFP:

1.      Provide detailed written specification-Why? Both parties have the same clear idea of what is expected. Include the contract as well so the contractor has everything up front. Communicate, Communicate, Communicate.

2.      Include information about the Association that the contractor will need. Example: No work on Saturday or Sunday.

3.      Ask for any information about the contractor’s ability to perform the job

Identify potential contractors:  Remember that it usually takes 5 or 6 requests for proposals to obtain at least three.  It is a good policy to call all the contractors first to “feel” them out. Why send a RFP out if the contractor isn’t interested. You may wait for a bid that will never come.

How do you find them:

1.      Referrals from other associations in your area

2.      Referrals from supply firms

3.      Past work done in your community

4.      Referrals from local trade associations

5.      Referrals from other managers

Get references from the contractor and call the references. Keep in mind that some contractors have very good “sales” personnel but are deficient in performance. Ask for a previous job site and go look at it. Make an appointment to visit the final candidates to check out there facilities and equipment.

Don’t be afraid to bring in outside experts before, during or after a project, IE. Engineers, Architects and or firms that analyze. Testing engineers and consultants, Structural Architects, and concrete testing companies.

Make sure you lay all the ground rules up front:

1.      Time lines

2.      Payment schedules-Tie payments to completion of work. Why? This encourages a contractor to get the work done on time. It is also easier to get the contractor to correct something if a payment is still outstanding.

3.      Final payment provision.

Once a contractor is selected be sure that you have all the key provisions included in the contract. The specifications should be included as an addendum to the contract. Again, don’t hesitate to consult with an attorney if you feel that you need one. This could be very important.

1.      Parties to the contract

2.      Scope of work

3.      Compensation

4.      Time period

5.      Standard of performance

6.      Warranty

7.      Restoration

8.      Indemnification

9.      Insurance****Get certificates before signing the contract

10. Licenses and Permits

11. Notices

12. Termination****

13. Default

14. Financial protection-Bonds, Waiver of Lien

15. Assignability-No subcontractors

16. Modification

In conclusion, if you do all of the above, I believe you will have a very good experience with all parties concerned. A good contractor is an asset to all.  Consider signing a two or three year contract if applicable. The contractor, the Board, and the owners will conclude the project and everyone comes out a winner.