Condo Work Contract Awarded Without Bid!

J.B. from New Haven County writes:

Dear Mister Condo,

Does the condo board have a fiduciary responsibility to obtain multiple bids for work completed on exterior? If so can they set a dollar limit whereby they must obtain bids?

Mister Condo replies:

J.B., it is a best practice to obtain multiple bids for any work done at the association. However, there are plenty of times that a Board will work with a contractor they trust or who has done previous work for them that they feel merits further hiring of the same contractor. That being said, if the by-laws call for a minimum of three bids before jobs above a certain dollar amount are awarded, then they should follow the by-laws. If not, they are setting themselves up for a lawsuit from unit owners who feel the Board isn’t following the rules on such purchases. You should take a look at your by-laws to see what it says on the matter. If it doesn’t describe the process, then the Board is likely free to hire as they see fit. All the best!

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