Q. What is the dollar amount when multiple bids should be obtained for work on condo properties? My requests to obtain bids are repeatedly denied by the condo association. Recently, I was berated by an audience member and a board member for pushing the issue for repairs that will total about $7,000. Any guidance is appreciated.
A. There are a few basic requirements that are in play when a condo association is obtaining bids for services, and the board really does not have the discretion to ignore these requirements. First, certain contracts must be in writing. All contracts for services (except legal and accounting) and all contracts for the purchase or lease of materials or equipment must be in writing. Second, when the contract price for the service or materials is more than 5% of the association’s annual budget, including reserves, the association must obtain competitive bids. The association need not accept the lowest bid, but the association has a legal obligation to at least obtain competitive bids and make a good faith attempt to evaluate all bids. Certain types of special contracts are not subject to competitive bidding requirements, and your association’s legal counsel can provide you with those exceptions.