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Competitive Bidding Requirements: What to Your HOA Needs to Know When Soliciting Bids from Vendors

Maintaining safe and habitable condominium associations requires ongoing efforts – and money. To comply with legal requirements like the 40-year recertification process, many Florida condo communities will need to solicit competitive bids to complete structural work on their community’s property. 

Not only is collecting multiple bids generally a best practice when selecting a vendor, but it is also required under Florida law. Though the requirement to get competitive bids is not required for every situation, there are several in which it does. 

When is an HOA NOT Required to Solicit Competitive Bids?

Most HOAs in Florida must collect at least two competitive bids prior to beginning work on a project, though that doesn’t mean they have to go with the lowest-bidding vendor. Exceptions to this rule include the following situations:

  • If your HOA has 10 or fewer units. In these instances, you do not need to seek competitive bids if passed by a two-thirds majority vote.
  • If your HOA engages a professional contract with an attorney, accountant, architect, landscape architect or engineer.
  • For work related to an emergency event or natural disaster.
  • For contracted employees who already work directly with the HOA.
  • For situations in which there is only one vendor who provides the type of services your HOA needs done. 

When is an HOA Required to Solicit Competitive Bids?

If the work or repairs do not fit into the above exceptions and if the cost of the work will exceed 5% of the total annual budget (including reserves), then your HOA must comply with the competitive bidding requirements. This goes for all contracts related to the purchase, lease, equipment, rental, materials, and services required of the job. All contracts must also be in writing.

Soliciting competitive bids can be a stressful process for your HOA. Consider consulting a community law attorney to help. Our team at Dania Fernandez and Associates, P.A. excels at contract negotiation and can ensure that you fulfill all legal requirements before awarding a bid. Contact us today to schedule a free consultation. 

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