Written confirmation of all details is still essential
Dear Tony:Our Burnaby condo is proceeding with long-needed roof repairs. The council have decided to retain the roofing company that has been keeping our roofs on life support without looking for other proposals or bids.
A meeting is planned for early August to approve a levy that has owners contributing on average $25,000 a unit, with the roofing to be completed before the end of the year. We are quite concerned because there are few details about the scope of construction, it seems to be an open ended contract and other the council president no one knows how the project will be managed. This is a two-million dollar project. Don’t we require at least three bids?
Darren W.
There is no provision or requirement in either the Strata Property Act or Regulations that require a minimum of three bids. There are large strata corporations with significant purchasing cycles that have imposed specific buying practises in their bylaws, but this is rare. In Metro Vancouver we have a sufficient supply of competitors. Competitive bidding requires a detailed scope of specifications, fixed rates to address unknown conditions such as a damage, rot, design or code upgrades, and the business relationship and site conditions of the successful bidder.
I had two recent experiences with strata corporations that raise concerns for strata owners. The first was a contractor who openly informed the council he would not do the work, which was over $150,000, if he had to comply with the Builder’s Lien Hold Back Act, which is required by law for projects of $100,000 or greater. The second was a contractor who refused to participate if he had to bid on a competitive project.
The strata corporations in both situations chose to retain consultants for roofing and balcony repairs to set specifications and conduct a formal bidding process. The addition of time and cost for the consultant to detail the design, specify construction materials and installation methods, inspection and progress cycles throughout the projects, and site management were both well worth the effort to see the projects complete on time and on the planned budgets.
We don’t always have the luxury of time or location. Many rural and remote communities often have the choice of only one contractor, but don’t assume this requires your community to abandon the ability to negotiate terms, conditions, and specifications for a project.
Written confirmation of all details is still essential. If the conditions require immediate repairs, there is still time for a consultant to specify the scope of repairs for a roofing project. While you may still use the same contractor, you will have a written detail of the project and deliverables.
[email protected]
Tony Gioventuis executive director of the Condominium Home Owners Association.