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CONTRACTS FOR PRODUCTS AND
SERVICES; IN WRITING; BIDS; EXCEPTIONS
By
Jan Bergemann
Published
June 5, 2015
The provisions in
the HOA ACT – that’s how FS 720 will be officially called
effective July 1, 2015 – were created in 2004 – as a part of the
HOA Task Force bill. You can read the exact wording at:
FS 720.3055
No matter what – the
wording is definitely open to all kinds of interpretation and
all in all pretty confusing. It was written by attorneys, for
attorneys – and anybody reading it is in the end more confused
than educated.
Here is the
description for “COMPETITIVE BIDS” given by the
Business Dictionary: Transparent' procurement method in which
bids from competing contractors, suppliers, or vendors are
invited by openly advertising the scope, specifications, and
terms and conditions of the proposed contract as well as the
criteria by which the bids will be evaluated. Competitive
bidding aims at obtaining goods and services at the lowest
prices by stimulating competition, and by preventing favoritism.
What does all the
confusing wording in the statutes really mean? Who knows!
Considering all the exceptions it is pretty difficult to decide
when the association really has to use competitive bids. But, in
all reality, using competitive bids is good business practice,
especially if board members have no idea how much companies
charge for certain jobs. You will wonder how prices can differ.
But it all depends
on the way the
Requests for
Proposals (RFP’s)
are written. Bids can only be competitive if all vendors
contacted are actually bidding on exactly the same job. It is
imperative that all vendors receive exactly the same RFP – or
the whole process is useless.
On the other hand
vendors are often receiving RFPs that can only be considered
ridiculous. RFPs should only describe the exact work that needs
to be done – and ask for the experience and licenses of the firm
contacted.
It makes no sense
asking for hundreds of not really important details. Who cares
what kind of underwear the persons doing the job will wear?
Believe me, there are actually RFPs that are asking similar dumb
questions.
Short and sweet is
the deal here if the bidding process is supposed to be
effective.
Isn’t that what
boards should be looking for?
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Jan Bergemann is president of Cyber Citizens For Justice,
Florida
's largest state-wide property owners' advocacy group.
CCFJ works on legislation to help owners living in
community
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associations. He moved to
Florida
in 1995 - hoping to retire. He moved into a HOA, where the
developer cheated the homeowners and used the association dues
for his own purposes. End of retirement!
CCFJ was born in the year 2000, when some owners met in
Tallahassee
- finding out that power is only in numbers. Bergemann was a
member of Governor Jeb Bush's HOA Task force in 2003/2004.
The organization has two websites to inform interested
Florida
homeowners and condo owners:
News Website: http://www.ccfj.net/.
Educational Website: http://www.ccfjfoundation.net/.
We think that only owners can really represent owners, since all
service providers surely have a different interest! We are
trying to create owner-friendly laws, but the best laws are
useless without enforcement. And enforcement is totally lacking
in
Florida
!
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