Making the Righ O
ne responsibility of a board of directors is to identify, hire, and supervise vendors to perform repairs and maintenance in their community. The first step is to identify which items are to be maintained by the association and which by the unit owner. This information can be found in the governing documents and the reserve study. Some planned developments have minimal common areas and may be responsible for maintenance of only a few small areas of landscaping. Others may provide maintenance of the common buildings, including painting and re-roofing of the homes. The association might be responsible for landscaping and tree care only in the common areas or for all plants and trees in all areas. Some communities have extensive recreational facilities including pools, spas, tennis courts, and common-area restrooms. Hiring the right vendor is essential. Some vendors will be retained to provide ongoing maintenance. Examples are the landscape contractor and the pool maintenance service provider. Periodic maintenance will require hiring a vendor for a specific contract. Examples are a painting contractor, a general contractor, and a roofing contractor. If the association is working with a professional management firm, they will likely maintain a list of approved vendors. What is an “approved vendor”? • A vendor needs to be vetted. The vetting procedure includes verification and documentation of specific information. A W-9 with the vendor’s federal tax ID is needed for 1099 reporting if they are not incorporated. Also needed are their license number and contact information for office hours and afterhours emergencies. • Is the vendor licensed? This information can be found on the Contractors State License Board website: www.cslb.ca.gov. The website will show when they were licensed, what type of license(s) they have, and when it will expire. 24
ISSUE FOUR 2021 | ECHO journal
• Do they have insurance? Not all insurance is the same. Some policies have exclusions for working in a homeowners association. Do they have any employees? If so, they are required by law to carry workers’ compensation insurance. The association must ask the vendor for a certificate of insurance (COI) to be issued by their insurance agent and provided directly to the association. Some vendors try to submit a certificate that shows evidence of insurance. This
