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Hiring the Right Contractor

Hiring a good contractor is not simple. Many do vary in terms of cost, professionalism, availability and expertise. The Board of Directors has the fiduciary duty to research and choose the right contractor that is in the best interest for the association. Proper investigating can save hundreds, if not thousands, of dollars not to mention headaches.  Below are some sample guidelines to remember and below them is a sample checklist:

1.       Determine the scope of the work (job specifications) before asking for bids. Specifications detail not only what is to be done and when, but also quality of the materials. Developing specifications requires the assistance of a professional who does this kind of work day in and day out. If specifications are not clear or just do not exist, each bidder will give a different price and opinion.  How could the Board make a decision? (except for always the lowest bidder) Bids developed using detailed specifications "do give the board a chance to compare apples to apples."

2.        Always get at least 2 or 3 estimates on any project. You’ll be surprised at how two contractors can bid the same project and have completely different prices. (One contractor’s heavy work schedule alone may significantly increase his bid).

3.       Require a copy of the current license, worker’s compensation insurance and certificate of property damage and personal liability insurance as part of the bid. If they don’t have the necessary insurance coverage, the association could be held liable for an injured employee or damage caused by the contractor, (although I’m sure all associations have Work Comp Insurance incase a contractor policy is canceled while performing work).

4.       Always ask for references. Don’t be afraid to call them and ask questions like: "Were you satisfied with the work?" "Did they start and finish at a reasonable time?" "Was enough communication between the contractor and board?" It has happened where a contractor will think he did a great job on project and use them as a reference.

5.       Find out "How long have they been in business?” "Who will be the supervisor in charge of the project?" and "How many projects like this have you done before?"

6. Ask yourself, "Do I feel comfortable working with this person?" Remember, you need to feel comfortable and communicate well with your contractor thus you should have a successful project. If you don’t feel comfortable with this person, find someone you are comfortable with.

Contractor Checklist for Community Associations

SAMPLE

This checklist applies to small and medium size renovation projects. For larger ones, hire a construction manager, architect and engineer if applicable.

 

 

Company_____________________________________________________________

Contact:______________________________________________________________

Address:_____________________________________________________________

City______________________________________ State____ Zip________

Phone:________________________ Fax:____________________________

Cellular________________________ Email__________________________

Website:______________________________________________________

State Contractors License Number: ________________________________

1) Number of years in the business: _____

2) Performed homeowner association construction projects?

? No    ? Yes List:

a. Association _________________________________________________

Address:____________________________________________________

Work performed:____________________________________________

b. Association _________________________________________________

Address:____________________________________________________

Work performed:____________________________________________

3) Current work load:

 ? Available now ? Available within 30 days

 ? Other ___________________________________________________

4) How much of this project will be done "in house"?

 ? All  ?  Most

 ? Other____________________________________________________

5) How much work will be subcontracted? [ ] None [ ] Some

 ? Other____________________________________________________

6) References for recently completed projects:

a. Project: ____________________________________________________

Contact: ________________________________ Ph#__________________

b. Project: ____________________________________________________

Contact: ________________________________ Ph#__________________

7) Liability Insurance Carrier:_______________________________________

Limits $________________________________

Agent_________________________________ Ph#__________________

8) Payment Options:

 ? In Full Upon Completion (Best)

 ? Progress Payments (OK) Recommend no more than 2 per month

 ? Deposit or Advance Required (Beware)

Other ________________________________________________________

_____________________________________________________________

9) Tour some active construction sites.

Site #1:_______________________________________________________

Impression:___________________________________________________

 

Date:_________________, 200__

 

Completed by:____________________________________

 

 
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