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Competitive Bidding Explained

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Q: When does a condominium association have to get bids for repair work and does the association have to hire the company with the lowest bid? (K.R., via e-mail)

A: Contracts for legal, accounting, architectural, engineering, and landscape architectural services are not subject to the competitive bid requirements. Contracts for employees who work directly for the association are also exempt from competitive bidding, as are contracts for needed products or services in the event of an emergency.

Generally speaking, all other contracts for the purchase, lease, or renting of materials or equipment, or for the provision of services, which require payment by the association that exceeds five percent of the total annual budget of the condominium association, including reserves, are subject to competitive bidding. The law also requires such contracts to be in writing.

The statute only requires two bids, not three as some think is the case. The law does not require the association to accept the lowest bid.

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