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22 NEW ENGLAND CONDOMINIUM -OCTOBER 2021 NEWENGLANDCONDO.COM Ben Ketchen | Corporate Banking 617.520.5349 bketchen@cambridgesavings.com cambridgesavings.com We’re Creative. We’re Reliable. We’re Empowered. Now that you know a little bit about us, the rest is about you. Begin a relationship with us today, and see why you’ll feel like our only customer. n Capital Improvement Loans & Lines of Credit for Condominiums n Commercial Loans & Lines of Credit n Commercial Real Estate Lending n Cash Management Services stage is also a good time to leverage future projects, or suggest bulk purchasing or other effi ciencies. For example, managers handling multiple properties may be able to negotiate favorable prices when buying large quantities of necessities like snow melt that can be shared among those cli- ent properties. Even if a board-management team all these contractors and vendors from comes into the bid- ding process well prepared, with i’s dotted and t’s crossed, there can still be challenges. “Th e biggest prob- lem today is fi nding the bidders to do the job,” says Scott Wolf, CEO of Bos- ton-based manage- ment fi rm BRIGS. “We had a situation recently where we went for fi ve bids. Of the fi ve, three vendors backed out, one was just not a great contrac- tor, and the other was outrageously priced. Contractors have so much work these days, they can be that way. We now say we need to know in the bid that the engineering specialist, because they know contractor can start within ten days of the nuances of any particular job and any contract signing.” Smaller Jobs & Long-Term Services How does the bidding process change for smaller jobs—or for potentially long- term service contracts like pest control or landscaping maintenance? “Right now,” says Wolf, “smaller jobs are harder to fi ll, because everything is bottlenecked. We don’t bid out jobs less than $10,000. We just fi nd someone to do it. For smaller buildings we have a $5,000 threshold. Otherwise, it’s the same pro- cess.” When seeking long-term vendors, Schlossberg says, “We speak to other managers and supers, for instance, to fi nd a great exterminator. We will go to three vendors to make sure they’re proposing a good deal, then bring the bids straight to the board and review the terms with them. Th e board will pick based on price and services off ered.” Schlossberg says that the bidding process for this type of contract doesn’t require an engineer, and themselves into the bidding process? is a less intense process overall, “but it Should they recommend their cousin or does require a lot of research on our part.” In regions where snow and ice factor provement job or a regular, on-going con- into building and grounds maintenance, tract? It depends on where that recom- Wolf explains that landscaping and snow mendation is coming from. removal are oft en bid together. In New England, where his fi rm is based, “It’s one contract per season. A lot of associations do one for both. If you get damage from snow removal, the same guy fi xes it. Bids for these types of services are less techni- cal; there’s no RFP drawn up by an engi- neer. Instead, a request for bids is drawn up by the property manager and goes out to between three and fi ve vendors. Th e board choses one, and you go forward.” How Are Potential Bidders Identifi ed? So how do managers and boards fi nd whom to solicit RFPs and bids? “It’s industry k n o w le dg e ,” says Schloss- berg of identi- fying potential contractors and vendors. “It’s not a huge com- munity. We talk to each other from other com- panies, etc. We know who will do a good job and who is iff y. If someone does a great job on one building, we are likely to bring them in for an- other building. On large jobs we consult with and defer to the particular contractor.” Schlossberg continues: “If the engineer writing the RFP has a preference for a par- ticular vendor with whom we’ve had a bad experience, we will talk it out, but likely won’t work with that vendor again. We then will inform the board in any event. If the board says ‘go ahead,’ we will make clear our prior experience. Th e board makes the ultimate decision.” “All managers have their preferred vendors,” says Wolf. “We do too—many of them are long-term relationships. We trust these guys, so we use them. I’ve had issues where vendors get angry because they bid many times but don’t get the jobs. I tell them to bid better. It’s not a big is- sue for boards if you always bring in the same people, as long as everything’s done fairly. We get more guff from the vendor side than the client side.” Inside Job Should board members insinuate brother-in-law for a major capital im- According to Schlossberg, “It has never THE BIDDING... continued from page 21 “Be as detailed as possible to get a contract that meets your expectations. Meet with the contractors on site and walk through and express your expectations. Communicate the details. Communication is the key.” —Kevin Keating See us at Booth 416