Before you can evaluate vendors, you need to find them. The goal is to identify multiple qualified candidates for comparison.

Sources for vendor referrals:

• Other community associations: Ask neighboring boards who they use and whether they'd recommend them.
• Management companies: Established managers have vendor relationships and know who performs reliably.
• Professional associations: CAI (Community Associations Institute) chapters often maintain vendor directories.
• Online research: Check reviews, but verify with direct references.

Initial screening questions:

• How long have you been in business?
• Do you have experience with community associations?
• Can you provide proof of insurance?
• Can you provide references from similar communities?

A Franklin board president shared how they found their current landscaper: "We asked five other HOAs in Williamson County who they used. Two recommended the same company. That was our starting point." Word of mouth from peers is often the best source.

For significant work, get multiple bids. This ensures fair pricing and gives you options to compare.

When to get multiple bids:

• Projects above your board's single-approval threshold (often $5,000-$10,000)
• Recurring contracts up for renewal
• Any work where you're unsure of fair market pricing

Creating an effective bid request:

• Specify exactly what you need done (scope of work)
• Include timeline requirements
• Require proof of insurance (liability and workers' comp)
• Ask for references from similar communities
• Set a deadline for bid submission

Evaluating bids:

• Compare apples to apples. Different scopes make comparison impossible.
• Ask questions about anything unclear or significantly different between bids.
• Consider total value, not just lowest price. Reliability and quality matter.
• Check references. Actually call them and ask specific questions.

Be wary of bids significantly lower than others. Either they're cutting corners, misunderstanding the scope, or they'll hit you with change orders later.

A good contract protects both parties and sets clear expectations. Never start significant work without a written agreement.

Essential contract elements:

• Scope of work: Detailed description of what will be done, materials used, and standards expected
• Price and payment terms: Total cost, payment schedule, and what triggers each payment
• Timeline: Start date, completion date, and any milestone deadlines
• Insurance requirements: Minimum coverage levels and requirement to add association as additional insured
• Warranty/guarantee: How long work is guaranteed and what's covered
• Termination clause: How either party can end the agreement and with what notice

Additional provisions to consider:

• Indemnification (vendor protects association from claims arising from their work)
• Dispute resolution process
• Licensing requirements
• Change order procedures and pricing

For complex or high-value contracts, have an attorney review before signing. The cost is minimal compared to the exposure of a bad contract.

Signing a contract is the beginning, not the end. Ongoing oversight ensures you get what you're paying for.

For recurring services (landscaping, pool maintenance):

• Define what "acceptable" looks like. Written standards help.
• Conduct regular inspections. Monthly walkthrough with the vendor works well.
• Document issues promptly and in writing.
• Require corrective action within a reasonable timeframe.

For project work (construction, major repairs):

• Define inspection points in the contract.
• Consider hiring an independent inspector for major projects.
• Don't make final payment until punch list items are complete.
• Document everything with photos and written reports.

Performance documentation:

• Keep a file for each vendor with contracts, correspondence, and performance notes.
• Note issues and how they were resolved.
• This history is invaluable when contracts come up for renewal.

Even good vendors sometimes fall short. How you handle problems matters.

Addressing issues:

• Start with direct communication. Many problems are misunderstandings or oversights.
• Put concerns in writing. Verbal complaints are forgotten.
• Be specific about what's wrong and what you expect.
• Set a reasonable deadline for correction.

Escalation path:

1. Direct communication with your regular contact
2. Written complaint to their supervisor or owner
3. Formal notice citing contract provisions
4. Contract termination per the agreement's terms
5. Legal action (last resort)

When to change vendors:

• Repeated quality failures despite documented complaints
• Lack of responsiveness to legitimate concerns
• Insurance lapses or licensing issues
• Pricing becomes uncompetitive after good-faith negotiation

Changing vendors has transition costs. Don't do it lightly, but don't accept poor performance indefinitely either.

Emergency vendors:

• Identify emergency contacts for critical services (plumbing, electrical, security) before you need them.
• Verify they offer 24/7 service and response time guarantees.
• Understand their emergency pricing in advance.

Long-term relationships:

• Loyalty to good vendors has value. They know your property and prioritize established clients.
• But periodically test the market to ensure pricing remains competitive.
• Multi-year contracts can lock in pricing but reduce flexibility.

Board member conflicts:

• If a board member has a business relationship with a vendor, they must disclose it.
• Depending on the situation, they may need to recuse from discussion and voting.
• Perceived conflicts matter too. Avoid even the appearance of impropriety.