Ask The Manager : How To Establish General Requirements and Terms and Conditions for Vendors Hired to do Smaller Jobs
Q. Is there an easy way for our community to establish written "general requirements and terms and conditions" for the vendors that we hire to do smaller jobs, similar to what is typically in place for the vendors of our larger capital projects?
A. The solicitation of bids and the procurement of services for major capital projects are often accomplished with reams of paper devoted to defining such aspects of the job as scope of work, specifications and general requirements. Since capital projects usually involve big jobs with significant expenditures, the time and energy devoted to defining the work and specifying mutual responsibilities of the parties is wisely spent.
Capital projects, however, are only one component of an association's expenditures involving the use of outside contractors. Often an association will spend an equal or greater total sum using contractors to perform the plentiful small jobs that need to get done during the course of the year. Chances are that such work gets done based upon a phone call and a handshake which can be a risky business for both parties.
If an association finds a good electrician, plumber or general trade contractor and wishes to develop a good working relationship based on honesty, integrity and mutual trust, would it not make sense to also establish a written agreement for the mutual benefit of all parties that establishes the "terms and conditions" of that relationship?
A good business practice for hiring contractors for one shot repairs or for recurring small jobs is to establish written "general requirements" for any and all work performed at the association. Then when all service proposals or purchase orders are agreed to they can be "subject to the attached general requirements".
Such "general requirements" can be written in concise and generic language (generally in 3 pages or less) to cover most work performed at any time and should establish such parameters as rate schedules, license requirements, working schedules, responsibilities of the parties for obtaining permits or notifying authorities or residents etc, traffic control, storage and utilities, insurance requirements, hold harmless agreements, designated supervisors or agents for the respective parties, termination clauses and terms of payments. Please find an example of a draft copy of "general requirements" document through this link (click here). This draft example is offered as an illustration of what could be considered.
By Jim Banno, Imagineers LLC
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