Before signing an agreement with a potential contractor, you should understand a few key issues that can affect your project’s cost, timeline and legal risks. Taking time to review these details can help your association avoid unnecessary disputes after work begins.
Here are the main things to review before making your decision.
The contractor’s qualifications
Choosing a qualified contractor is one of the best ways to reduce problems before a project begins. Depending on the work involved, you may want to:
- Verify the contractor’s licenses
- Ask for proof of insurance
- Find out if they worked with other HOA communities before
Someone who understands how associations operate may be better prepared to communicate with the board and complete the project with minimal disruption.
The contract terms
A written agreement should clearly explain what you are paying for before anyone begins work. Review the scope of the project, payment schedule, expected completion date and how to handle changes to the project.
In Missouri, courts generally enforce contracts according to the terms the parties agreed to, making it important to resolve questions before signing instead of after a dispute arises.
The board’s approval process
Your governing documents may require you to follow certain procedures before approving a contract. Review those requirements before making a final decision, then record the approval in your meeting minutes. Following your association’s own procedures helps support the board’s decision and creates a clear record of how the project was authorized.
Potential liability concerns
Every project carries some level of risk, even when you hire a reputable contractor. Before work begins, make sure you understand who is responsible for unexpected property damage or injuries during the project. Confirming insurance coverage and responsibility ahead of time can help protect your association if an unexpected problem occurs.
Lay the groundwork before work begins
Every improvement project comes with decisions that can affect your association long after finishing the project. Before hiring a contractor, taking time to understand the contract, your approval requirements and potential risks with an attorney can help you make informed choices that support your community’s long-term interests.