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Homeowner Associations (HOAs) are complex organizations that manage a community's property and ensure that its residents have a safe and pleasant living environment. One of the most challenging aspects of running an HOA is finding the right vendors to complete necessary work. A well-written scope of work is a critical component of the bidding process, but it can be difficult for HOA board members, managers, and vendors to develop a clear and comprehensive document that meets everyone's needs. Oftentimes boards think that managers should be responsible for writing scopes of work, but this couldn’t be further from the truth. Most managers are not trade experts and capable of writing accurate and well detailed scopes. Hiring an independent expert to write scopes of work with the HOAs best interest in mind creates a winning environment for all parties involved. In this blog, we'll explore how an HOA board, a vendor, and a manager can all benefit from hiring an independent expert to write scopes of work. How HOA Board Members Win An HOA board is responsible for the well-being of its community, and part of that responsibility includes hiring vendors to complete necessary maintenance or repair work. A poorly written scope of work can lead to confusion, misunderstandings, and increased costs. By hiring an independent expert to write scopes of work, the HOA board can be sure that they have a clear and comprehensive document that accurately reflects the community's needs. The expert can work with the board to identify key project requirements, develop a detailed scope of work, and ensure that all vendors have a fair and equal opportunity to bid on the project. This approach leads to more accurate bids, reduces the likelihood of change orders, and ultimately saves the HOA money in the long run. How Vendors Win Vendors are always looking for ways to differentiate themselves from their competitors and win new business. A well-written scope of work gives vendors the information they need to develop accurate and competitive bids. However, vendors often struggle with incomplete or confusing scopes of work, which can make it difficult to accurately estimate costs and develop a winning bid. By hiring an independent expert to write scopes of work, vendors can be sure that they have a clear and comprehensive document that accurately reflects the project's needs. This approach ensures that all vendors have the same information, reducing the likelihood of discrepancies between bids and increasing the chances of a successful bid. How Community Managers Win Community managers are responsible for managing day-to-day operations and ensuring that projects are completed on time and within budget. However, writing scopes of work can be time-consuming and take them away from other important tasks. By hiring an independent expert to write scopes of work, managers can save time and focus on other important tasks. The expert can work with the manager to identify key project requirements, develop a detailed scope of work, and ensure that all vendors have a fair and equal opportunity to bid on the project. This approach leads to more accurate bids, reduces the likelihood of change orders, and ultimately saves the HOA money in the long run. In conclusion, hiring an independent expert to write scopes of work creates a winning environment for HOA boards, managers, and vendors. A well-written scope of work reduces the likelihood of change orders, ensures that vendors have accurate information to develop competitive bids, and saves managers time to focus on other important tasks. Overall, the approach leads to a more efficient, cost-effective, and successful bidding process.
Over the past five years, high rates of turnover have become a common occurrence within the HOA marketplace. Stories of frequent changes in service providers and management companies are rampant, leading to a lack of trust and dissatisfaction among community members. But what is causing this misalignment of expectations between service providers and customers? The answer lies in the scope of work. Scope of work refers to the specific tasks, deliverables, and timelines that are agreed upon between a customer and a service provider before the start of a project. In the HOA industry, a poorly defined scope of work often leads to apples-and-oranges bids, making it challenging for Board members to decipher which bid is the most suitable for the community. Unfortunately, the result is usually a decision based on cost, leading to massive problems downstream and failed relationships. So what happens when a company is bidding on a poorly defined scope of work? There are three outcomes you can expect: 1. Poor Quality When the scope of work is not clearly defined, the company bidding on the job may not fully understand the expectations and requirements of the project. This leads to a lower quality of work and an unsatisfied customer. 2. Upselling & Change Orders Companies bidding on a poorly defined scope of work may overlook important details, leading to the need for additional work or changes down the line. This results in upselling and change orders, which can significantly impact the cost of the project. 3. Delays A poorly defined scope of work can also lead to delays in the completion of the project. Companies may not have a clear understanding of the timelines and may not have the resources or expertise to complete the work on time. On the other hand, when a company is bidding on a well-defined scope of work, there are three outcomes you can expect: 1. Good Quality A well-defined scope of work ensures that the company bidding on the job fully understands the expectations and requirements of the project. This leads to a higher quality of work and a satisfied customer. 2. Fair Pricing A well-defined scope of work enables the customer to compare apples-to-apples bids, allowing for a more informed decision based on quality and price. 3. Fewer Change Orders & Setbacks When the scope of work is clearly defined, the chances of upselling, change orders, and setbacks are significantly reduced. This leads to a smoother project experience and fewer unexpected costs. In conclusion, a well-defined scope of work is crucial for a successful project outcome. Hiring an independent expert to build the scope of work, using a pre-existing contract as the baseline for a new scope, and engaging with all bidders in a single location are key components in achieving a proper and reliable scope of work. Investing in a well-defined scope of work will result in a successful project outcome and a satisfied customer.
Over the past five years, high turnover rates have become a prevalent issue in the Homeowner Association (HOA) market. Many HOAs have reported difficulties retaining community managers, landscapers, and contractors, who often fail to meet expectations regarding cost and quality. If you have encountered a similar situation, you are not alone. The root cause of this problem often lies in unclear expectations and poorly defined budgets. Unclear scopes of work often lead to inconsistent bids, causing dissatisfaction and mistrust among the parties involved. As a result, Board members face difficulty evaluating bids that vary significantly in price, which often leads to poor decision-making and failed relationships. To mitigate these issues, it is crucial to develop a well-defined scope of work that accurately reflects the expectations of the HOA. However, this can be a challenging task for those who are not trade experts. A common industry practice is to gather bids from various contractors and use the first bid as a reference for the others. However, this approach can be problematic if the first bid is poorly developed. 1. Hire an independent expert to build the scope of work To overcome this challenge, consider hiring an independent expert to build the scope of work. An independent expert can ensure that your expectations are properly defined and that an accurate bidding process takes place. By investing in an expert, you can have peace of mind knowing that your scope will be tailored to meet your needs. 2. Only use a pre-existing contract as the baseline for a new scope In the case of recurring contracts, such as management or landscape contracts, it is acceptable to use a pre-existing contract as a baseline, but it is important to articulate the areas of dissatisfaction and include them as expectations in the new scope of work. Engaging with all bidders in a single location, such as an anonymous forum, can ensure that everyone is on the same page and that all bids are apples-to-apples . 3. Engage with all bidders in a single location Engaging with all bidders in a single location, such as an anonymous forum, can ensure that everyone is on the same page and that all bids are apples-to-apples.In some cases, scope of work may be missing a few details that bidders will bring to the attention of the customer or facilitator. When these details are discussed, all bidders must be given the new information so that everyone is still bidding apples-to-apples. A great way to communicate with all bidders is through an anonymous forum where bidders can ask clarifying questions while simultaneously reviewing your responses. This way everyone bidding is in the loop and on the same page. After a collaborative engagement window closes, it is important to reference the original scope of work to ensure each bid has included all necessary items. It is not uncommon for bidders to exclude items in their bid to offer a lower price. These low prices may look enticing to the customer, but, if not carefully reviewed, contracts can lead to change orders and delays. Ultimately, resulting in the customer paying more than they originally agreed upon. In conclusion, a well-defined scope of work must include three key elements: (1) hiring an independent expert, (2) using a pre-existing contract as a baseline, and (3) engaging with all bidders in a single location. Adhering to these principles will ensure a proper and reliable scope of work for any project.
