Vendor Management
The process of selecting, contracting, overseeing, and evaluating service providers who perform work for the association. Good vendor management includes obtaining competitive bids, verifying insurance and licenses, negotiating favorable contract terms, monitoring performance, and ensuring compliance with safety standards. The board or management company should maintain a list of approved vendors and review their performance regularly.
Example in Context
The board required three competitive bids for the pool resurfacing project and selected a vendor based on a combination of price, experience, and references.
Related Terms
Frequently Asked Questions
Should an HOA get multiple bids for vendor work?
Yes. Obtaining at least three competitive bids for significant projects is a best practice and may be required by your governing documents. Multiple bids help ensure fair pricing, allow the board to compare qualifications, and demonstrate the board's exercise of fiduciary duty in managing association funds.