Dealing with service vendors is a necessity for any condo development, as there are always going to be things that need to be repaired, replaced, serviced, cleaned or renovated.

New England communities do not differ greatly from the vendor services required to maintain condominium associations in other areas of the United States. They need to maintain, repair and replace the common area elements of the association.

“This ranges from exterior elements such as the landscaping, sidings, roofing, paving etc. Also, included are interior elements such as elevators, carpeting, painting and boilers,” says Tim Arel, CMCA, AMS, PCAM, of North Point Management in Andover, Massachusetts.. “However, unlike other areas of the country, New England condominiums are blessed with having to budget and plan for snow removal. The white stuff can not only be a significant part of the annual maintenance budget, but it is also one of the areas that create the potential for significant liability.”

A vendor who is treated fairly can be one of the association’s biggest assets. In fact, an association that maintains good working relationships with its vendors could see the benefit at the time when the association is most in need of help.

“We have had vendors who have re-arranged schedules to make sure they could address immediate issues due to the positive working relationships they have had. This not only saved time, but in emergency situations, it results in the mitigation of damage,” Arel says. “I have also seen circumstances when a vendor who did not get awarded a bid, stepped in and took over a project because the low bidder hired could not perform.”

Jim Toscano, PCAM, president of Property Management of Andover in Lawrence, Massachusetts, says honesty is the key to any successful vendor/management relationship.

“You need to provide them with positive, as well as negative remarks on the services they perform,” he says. “You can’t skirt around the issues—let them know what you’re thinking and what needs to be done and if it’s not going in the direction you want.”

Smart Business

The key to building a good working relationship is to ensure that any areas for ambiguity and disagreement are eliminated.

“An association can save significant time and resources by initially spending the time to draft a detailed scope of work as part of the bidding package,” Arel says. “By having clear expectations, a board not only ensures that they are obtaining the desired result, but they area also providing the vendor with an understanding of what service they are expected to deliver to the association.”

Most problems arise when there is not a meeting of the minds and, in those cases where the contract is not clear, there will be a breakdown in the working relationship as both the association and vendor will be pointing fingers at each other trying to lay blame.

“In those instances, it is the association that ends up on the short end as the owners are not getting the performance they were hoping for and they may have lost a good vendor in the process,” Arel says. “Notably, it is important for every board to remember that you do get what you pay for. In some cases it may be the quality of the work, but in others, it may be the scope of the work. In either case, this most likely could have been avoided by the board and management spending the time to set forth their clear expectations and level of performance that the vendor is to provide as part of the agreement.”

Since all vendors are entitled to make a reasonable profit for their work, ensuring that their profit is tied into the quality of the work provided to the association sets both parties into a win-win relationship.

According to Toscano, even with vendors not chosen, they will continue to work with and accept future bids, being upfront with them about why they may have lost out on a particular job.

“We won’t talk about prices or cost information, but we will give them an idea of where they landed and invite them to give it another shot at another time,” he says.

The Vendors Speak

Mike McDuffee, project manager at Corolla Roofing, based in Winthrop, Massachusetts, says the best way to build a relationship with a condo board or property manager is to continually build trust.

“We do this with good communication and follow-through,” he says. “When something goes awry, fix it. Don’t make excuses and try to ‘avoid’ the problem. If you face it head-on, and can make it right, that helps build trust with the client and strengthens the relationship.”

Michael Quirk, director of sales and marketing at Greener Horizon, LLC, Landscape Management & Construction, based in Middleboro, Massachusetts, notes that there’s a yin and yang relationship between vendor and management company.

“If you take care of them, they will take care of you,” he says. “The majority of what we do as landscape contractors is service-oriented. If you don’t provide them with the service they are looking for, someone else will.”

Even when a vendor gets a “no,” it doesn’t mean that the relationship is over. At Greener Horizon, the company philosophy is “if we can’t be their No. 1 choice, let’s be their No. 2.”

“Someone who is happy with their service provider today, may not be tomorrow,” Quirk says. “That’s when they call us.”

McDuffee adds that a vendor with a strong relationship with a client will have a much easier time moving past mistakes (and everyone make them from time to time), and that helps solidify the bond.

“These business relationships must be mutually beneficial in order for the outcome to be the best it can be,” he says. “HOAs and managers should view their inner circle of vendors as assets—partners that will make their lives easier and produce results for the community. In turn, service providers must view their clients as a partnership as well.”

Securing a Fair Price

It only makes good business sense that if something goes wrong and needs fixing at a condo, the board or managing agent is going to do some due diligence to choose the correct contractor, and this is normally done by gathering bids.

After all, if you don’t compare the price and terms quoted to you by one vendor to those quoted to you by his or her competitors, how will you know if you’re getting a fair price, or being fleeced?

“The board/manager should have a clear scope of exactly what it is they are looking for, and they should research quality firms and invite them to bid on the project,” Quirk says. “There are definitely companies out there that cut corners; however, there are also many that don’t. These are the type of companies they should be looking for to submit prices. Companies that are on the up and up may be a little more expensive, but in the long run, it is worth finding them.”

Vendors can come from numerous sources—trade shows, word of mouth from other managers, vendors or boards, and also from direct solicitation on their part, showing good old-fashioned marketing still works.

The Internet has also been a great tool for managers and boards to locate specialty vendors, thanks to review sites like Yelp and Angie’s List, so they can see first-hand what other people thought of their work.

Money is always going to play into any vendor relationship, but there are some tricks of the trade for securing a good price without cutting corners or doing something unethical. It all starts with education and prior preparation.

“As with any project, 90 percent of the effort by the board should be spent in the planning,” Arel says. “A well-informed board will have obtained a good understanding of the scope of work they are asking vendors to bid on. This understanding will be evident to any vendor who is providing a proposal to the association. As such, there is a significantly lower risk that a vendor will try to take advantage, cut corners, or fail to perform.”

What Not to Do

The don’ts for an association are very clear, but sometimes not followed due to time constraints, lack of knowledge, or, in some cases, the belief that the vendor will look out for the association’s best interest.

“As with any undertaking, the best results will be obtained by the amount of planning and preparation performed by the board and management company,” Arel says. “In dealing with vendors, the don’t are fairly evident: Do not allow the vendors to define the scope of work, agreement, completion and payment schedules; Do not waive insurance, termination, assignment and other provisions that protect the Association’s control and exposure; Do not think you will be able to get a contractor to give you a price that is lower than the market. A vendor needs to make a reasonable profit to be successful and a Board should shy aware from any vendor who is providing a significantly lower bid than the other vendors; and Do not trust that a vendor will always treat you fairly.”

Toscano says to avoid being condescending and instill the fact that they are working together to better the property and then they will have the opportunity to come back if they do a great job.

From the other side of the equation, there are times when multiple contacts from an HOA or condo association approach crew members while they are on site, and ask them to perform additional tasks, ask them about work schedules, or have comments or concerns about their landscaping.

“This can be very unorganized and confusing,” Quirk says. “In order to keep good communication flowing, one contact from the HOA and one contact from the service provider should be all that are involved.”

Final Thoughts

A condo association should never be afraid to rely on management, an attorney, or other professionals to guide the board in the scope of work, bidding and oversight process. In most cases, this can be money well spent to avoid the potential issues that could arise.

At the conclusion of the job, Arel warns not to forget the pleasantries. “Just because they are a vendor, do not forget to thank them for a job well done.”

Keith Loria is a freelance writer and a frequent contributor to New England Condominium.