Use this worksheet when the board has bids to compare for a repair, a project or a service contract. A fair comparison starts before the bids arrive. Write the scope of work first and send the same written scope to every bidder, so each price covers the same job. Ask for every bid in writing, and try to get at least three. Our article on how to hire a contractor for your HOA explains what a scope of work should cover.
Compare the Bids Side by Side
Fill in one column for each vendor. A blank cell shows you what to ask for before the board votes.
| Criteria | Vendor A | Vendor B | Vendor C |
|---|---|---|---|
| Company name and contact | |||
| License number, and status verified | |||
| General liability insurance (certificate received, limits) | |||
| Workers’ compensation coverage | |||
| Years in business and similar HOA projects | |||
| References checked | |||
| Scope matches the request | |||
| Exclusions | |||
| Materials and specifications | |||
| Start date and duration | |||
| Total price | |||
| Payment schedule and deposit | |||
| Warranty | |||
| Permits and who pulls them | |||
| Change-order terms | |||
| Cleanup and site protection | |||
| Conflicts of interest disclosed | |||
| Notes |
In California, look up each license with the Contractors State License Board’s Check a License search at cslb.ca.gov. Confirm that the license is active and covers the trade you are hiring for.
How to Score and Decide
- Set aside any bidder that cannot show a current license where your state requires one, general liability insurance and workers’ compensation coverage.
- Do not choose on price alone. The lowest bid is not automatically the best one. A bid far below the others can mean the contractor misread the scope or left something out, so ask the low bidder to explain the number.
- If the board wants a score, rate each remaining vendor from 1 to 5 on price, experience, references, schedule and warranty. Agree on how much each factor counts before you look at the totals.
- Any director with a personal, family or business connection to a bidder should disclose it and stay out of the vote.
- Record the decision and the board’s reasons in the minutes, and keep the bids and this worksheet with the association’s records.
What to Get in Writing Before Work Starts
- A signed contract, reviewed by the association’s attorney, with the scope of work attached.
- The price, the payment schedule and how change orders are approved and priced.
- Start and completion dates.
- Certificates of insurance sent by the contractor’s insurance agent, with policy dates that cover the whole job.
- Warranty terms on labor and materials.
- Which permits the job needs and who will obtain them.
Once the contract is signed, the work shifts to managing the vendor. The other checklists and worksheets are on the HOA board tools page.
Want this worksheet as a Word file? It is included in the free California HOA Board Toolkit, one Word download with the board templates from our board tools page.
This worksheet is general educational information, not legal or financial advice. Laws vary by state and your association’s governing documents control many of these questions, so check with your association’s attorney or another qualified professional about your situation.