If your HOA is thinking about hiring a vendor to do work within your Association, there are some very important boxes to check before signing any written agreement.
One of the biggest mistakes you HOA can make is to hire vendors for specific work, without crafting and executing the essentials of a proper vendor contract, so here are 14 of the most common vendor contract essentials to help you protect your HOA from costly mistakes.
Be very specific about when the work begins, how long the project should take, and a guaranteed date of delivery of your vendor's services.
A written description of the start and duration of the work and details of how the warranties will be delivered to the HOA.
3. NAMED PARTIES
Clearly list both the Contractor and the Association on the vendor contract.
4. DESCRIPTION OF WORK
Define the scope of the work very clearly in writing. This includes very specific details of what the work is, where it's to be done, and how it will be completed.
Each subcontractor you hire should present documentation that they are sufficiently covered to performed the desired work.
6. CODE COMPLIANCE
Ensure the subcontractor will comply with all state and local codes and regulations throughout the entirety of the work.
7. GOVERNING LAW
The contract should list the state of which jurisdiction would prevail should a dispute arise.
8. BUILDING PERMITS
A statement that describes which party (contractor or HOA) is responsible for obtaining and paying for required building permits.
9. PAYMENT TERMS
Be sure your contract clearly defines payment milestones for the work, These can include down payments, progress payments and final payments.
A great contract should strive to define both the association’s indemnification of the contractor and the indemnification of the contractor from the association.
11. RECOVERY OF ATTORNEY'S FEES
A provision of attorney's fees by the winning party in case either party decides to take legal action while under contract.
Define what termination of the contract would look like and how a proper termination would come about.
Things change, so it's important to have information about how the contract can be amended.