In October 2004, a new Florida statute had passed through the legislation that requires associations to seek competitive bids for services rendered if over 10% of the total budget. Also, if not fully performed in one year, all contracts should be in writing. Competitive bids are not required if a renewal of a contract has a thirty day cause.
Like most laws, there are special provisions and exceptions. For example, if there is only one vendor in the local county who performs unique services, such as elevator pit cleaning, foam roof installation and even chickee hut replacement, would not be subject to this law. Competitive bids are not required in emergency situations. Pipe break/s, sewer overflow, roof leak/s, irrigation pump repair (which may cause massive plant lost), and ever after a hurricane where services and materials are limited, are all examples of emergencies.
Services that do not required competitive bids:
- Property managers
- Landscape architects
As in most cases, if standards are not less stringent than those in these statutes, then communities may operate under provisions provided for in their governing document. For more fun facts see, “What to know about Association Late Charges“. To review supporting documents, click here.
720.3055 Contracts for products and services; in writing; bids; exceptions.–
(1) All contracts as further described in this section or any contract that is not to be fully performed within 1 year after the making thereof for the purchase, lease, or renting of materials or equipment to be used by the association in accomplishing its purposes under this chapter or the governing documents, and all contracts for the provision of services, shall be in writing. If a contract for the purchase, lease, or renting of materials or equipment, or for the provision of services, requires payment by the association that exceeds 10 percent of the total annual budget of the association, including reserves, the association must obtain competitive bids for the materials, equipment, or services. Nothing contained in this section shall be construed to require the association to accept the lowest bid.
(2)(a)1. Notwithstanding the foregoing, contracts with employees of the association, and contracts for attorney, accountant, architect, community association manager, engineering, and landscape architect services are not subject to the provisions of this section.
2. A contract executed before October 1, 2004, and any renewal thereof, is not subject to the competitive bid requirements of this section. If a contract was awarded under the competitive bid procedures of this section, any renewal of that contract is not subject to such competitive bid requirements if the contract contains a provision that allows the board to cancel the contract on 30 days’ notice. Materials, equipment, or services provided to an association under a local government franchise agreement by a franchise holder are not subject to the competitive bid requirements of this section. A contract with a manager, if made by a competitive bid, may be made for up to 3 years. An association whose declaration or bylaws provide for competitive bidding for services may operate under the provisions of that declaration or bylaws in lieu of this section if those provisions are not less stringent than the requirements of this section.
(b) Nothing contained in this section is intended to limit the ability of an association to obtain needed products and services in an emergency.
(c) This section does not apply if the business entity with which the association desires to enter into a contract is the only source of supply within the county serving the association.
(d) Nothing contained in this section shall excuse a party contracting to provide maintenance or management services from compliance with s. 720.309.