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.