Simplify the Bidding Process & Exceed Homeowner Expectations By John Bristol
TWELVE STEPS TO SEALED BIDDING 1 Describe the project as clearly as possible (preliminary scope of project).
2 Ensure there is adequate funding or financial constraints to do the job right.
3
Boards of directors make decisions that affect what is usually people’s largest personal financial investment: their homes. Understanding the intricacies of how their decisions affect homeowners is rightly a heavy responsibility of HOA board members. The stakes and the pressure are high. However, it is extraordinarily rewarding when a board exceeds the expectations of the community, and projects are completed professionally, on time, and under budget. There are simple but important steps that help to make boards successful and ensure community satisfaction and transparency. The following twelve steps will help associations avoid many pitfalls of project development and increase the possibility of success and community appreciation for a job well done. These steps are written specifically for a sealed bidding process. Other contracting processes are possible, but a sealed bid process ensures confidentiality until the bids are open and avoids questions about the process by board members, other bidders, and the community. Continued on next page.
Establish board roles, especially who will manage the project, how reporting and approvals will be handled, and who has the authority to sign the contract.
4 Decide how the contractor will be selected, such as a sole source, negotiated bid, or sealed bid process.
5 Draft the scope of work; engage a trade-specific professional for most accurate scope.
6 Write a preliminary request for proposal (RFP).
7 Identify and invite several service providers to respond to the initial RFP.
8 Verify service provider references, insurance/bonding, and licenses.
9 Finalize scope and RFP. Send it to the approved contractors for bidding.
10 Engage in questions and answers with the service providers to fine-tune the scope before bids are submitted.
11 Request that all bids be returned, sealed, to a single secure location.
12 All bids are to be opened in executive session before the board members.
Once the bids are received and opened in executive session, there should be a robust conversation about the merits of each bid, including references and quality considerations. A thorough conversation at this stage will ensure that the best contractor will be hired. Sealed bidding ensures that the bids are reasonably protected from the possibility of gaming the bidding process. Simply having a rigorous process in place that is available to all homeowners and contractors allows a higher level of transparency and thus confidence in the bidding and selection process.
simultaneously delivering the best possible services to support the needs of the members, ensuring an outcome that is well-vetted and the best possible solution. John Bristol is chief information officer at SimplySeal LLC, a software company specializing in the sealed bid process for HOAs. Before joining SimplySeal, John spent over 25 years in the field of information technology consulting with Fortune 500 businesses. He has extensive experience in developing and managing the bidding process.
By consistently following these steps, HOA boards can fulfill the duty of maintaining budgetary commitments while
ECHO – Executive Council of Homeowners 5669 Snell Avenue, #249 | San Jose, CA 95123 (408) 297-3246 | www.echo-ca.org