Today I asked Claude when it is necessary to get bids for a project, and how many bids are required for a Florida-based Condominium? Also, list the major points to consider and areas that might indicate some instability in the bidding company.
When bidding is required (Florida condos):
Under Fla. Stat. §718.3026, a condo association must obtain competitive bids for any contract to purchase or lease materials/equipment or provide services once the total payment exceeds 5% of the association’s total annual budget, including reserves.
Exceptions — no bidding required for: contracts with the association’s attorney, accountant, architect, engineer, landscape architect, or community association manager; contracts with association employees; genuine emergencies; or situations where only one vendor serves the county (sole source).
Number of bids required:
The statute doesn’t set an exact number — it just requires “competitive bids,” which by definition means more than one. In practice, this is read as a minimum of two, though most attorneys and managers recommend three for a genuinely competitive process. The board is never required to accept the lowest bid.
Points for the board to consider when evaluating bids:
Scope of work should be identical across bidders, so quotes are truly comparable — vague or inconsistent scopes make “apples to apples” comparison impossible. Confirm each bidder carries current general liability insurance and workers’ compensation and verify state licensing directly through myfloridalicense.com (DBPR) rather than relying on a business card or county registration. Check that the license is held by the actual entity signing the contract, not a related or fictitious name. Review payment terms, deposit size, change-order language, termination rights, and warranty terms — a one-page proposal with no termination clause is a weak contract. Get the board’s counsel to review any contract of significant size before signing, since bidding compliance alone doesn’t protect the association from bad contract terms.
Signs of instability in a bidding company:
Watch for no verifiable insurance or a refusal to name the association as additional insured; licensing that can’t be confirmed in DBPR records, or a license held by a different entity than the one bidding; no permanent business address or only a P.O. box/cash-only payment requests; pressure to sign quickly or unusually large upfront deposits; unusually low bids with no clear explanation, which can signal a company cutting corners or in financial distress; open lawsuits or unsatisfied judgments (searchable via county clerk of court records); a pattern of BBB complaints; high staff turnover or reliance on subcontractors the company won’t name; and reluctance to skip required permits — a willingness to skip permits often correlates with a company cutting other corners too.
This is general information, not legal advice — for a specific contract or dispute, the association’s counsel should confirm how the statute applies.
Sources:
- Competitive Bidding… A Primer for Board Members and Managers
- Competitive Bidding Explained
- Competitive Bid Requirements for Florida Condominium Associations
- What You’re Getting Into – Vetting Contracts Before You Sign
- Vetting Contractors and Contracts – FCAP
- HOA Vendor Management: Vetting Contractors, COI Requirements, and Tracking Contracts
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