Model Contracts

Started by JohnT18 • 3 replies • 1153 views

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JohnT18 (Arizona)
Posts: 12

Posted:

My association board is attempting to tighten up its procedures for contracts for services and repairs. We are looking for guidelines or checklists on what should be in such contracts (in Arizona at least) so we can be sure we are being diligent. Does anyone have any ideas where I can find information like this (a search of this website did not find any specific discussion on this topic but maybe I missed it)?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I wouldn't know of any exact model contracts as each one is different. We had a policy that we had to gather atleast 3 competing contractors for each bid. They had to be insured and licensed. We also developed a list of what we wanted the contractor to do and presented that during negotiations with the contractors. Some were based off existing contracts as we found some changes if we choose a new contractor.

My best advice is to make sure each side has a proper "out" if something is to go wrong. A consideration of time limits should be observed. A good check with the Better Business Bureau is also recommended. There's no real go-to guide on hiring contractors. It wouldn't be a bad thing to have a committee who can work on this. The board will still have to approve and anyone can recommend a contractor. However, it does take some time to evaluate 3 contracts that are presentable. A committee or an assigned person would help in that process.

Former HOA President

TimB4 (Tennessee)
Posts: 21,047

Posted:

I don't have examples for you but I do have some things I look for:

Specific expectations (lawns will be mowed every two weeks, etc.)

Cancellation clause - Every contract should have one. Some contracts specify some sort of penalty for cancellation. I typically don't vote in favor of any contract with a penalty for cancellation.

Costs spelled out

Payment due dates

Insurance/License Requirement

Length

Renewal policy (continues on a month to month, auto renewal, new contract must be signed, etc.)

That's what I can think of off the top of my head for contracts in general.
If you can provide the type of contract (trash/recycling, management service, etc.) you may get better feedback.

Here are some links that might prove helpful:

Checklist For Vendor Contracts: A Guide for Community Association Managers

davis-stirling.com Contract Checklist

Tim

JohnT18 (Arizona)
Posts: 12

Posted:

Thanks so much. I am going to use this information to build my own checklist. I am afraid we have been too lax in contracting for work and we can be lucky only so long!

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