How to Successfully Enter Into Contracts With Vendors
- by Alana Ashby
When you are looking for a vendor, pay attention to reviews and talk to current and past clients to get as much information about the vendor.
Once you’ve found the appropriate vendor, review their contract for services. The next step is to get the contract to the association legal counsel for review. This will cost the association a few hundred dollars, which is money well spent rather than having to involve the attorney after the contract has been signed and a problem has arisen.
When reviewing the contract, make sure that the statements and representations contained in it are correct and that the association has the authority and ability to make those representations. Confirm authority in the governing documents for the association. A vendor should also carry a certain amount of liability insurance while they are working on association property.
Steer clear from signing long-term contracts because industries change quickly. Pay attention to deadlines and timeframes. Also beware of long-term auto-renewal provisions.
If you do have to terminate a contract, make sure you pay attention to the termination provisions and follow them.
Alana Ashby, CMCA and owner of AMI, helped to establish and served as a Board Member for Community Associations Institute (CAI) Idaho Chapter. Alana has extensive experience in all aspects of financial management, real estate development and management, as well as negotiation.
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