A homeowners’ association (HOA) is a private association with common interest rules. The board of the HOA is responsible for keeping running the affairs of the community. Among other things, this duty often involves hiring vendors, suppliers, and other contractors. This raises an important question: How do you make sure you have reliable and effective vendor agreements? Here, our Illinois HOA lawyers provide an overview of the key things you should know about contracts with vendors, suppliers, and other outside businesses.
HOAs and Contracts With Vendors
Contract Bidding
Contract bidding is an important process which helps to ensure an association can find the right vendor for a task or project. During bidding, contractors submit their proposals — and their prices — thereby allowing the HOA to review the options and select the best company. Contract bidding is a valuable tool for HOAs. At the same time, soliciting and reviewing bids can be a time-consuming process. HOAs are advised to be judicious in how often they bid out contracts.
Contract Negotiation
Once an HOA has selected a vendor or supplier, it is crucial they are able to reach an agreement that protects the rights and interests of the association. At Keough & Moody, P.C., we have extensive experience representing homeowners’ associations in contract negotiations. We help clients draft, review, negotiate and modify contracts with the full range of service providers.
Our legal team will make sure the terms are right for your homeowners’ association. Whether you are working on renewing an existing agreement with a vendor or you are preparing to start a new common area construction project within the community, our Chicago, IL HOA lawyers are here to help.
Contract Execution
Contract execution is the process of signing an agreement. When the agreement is signed by all parties (executed), it will be finalized. In other words, the terms are then binding and both parties will be required to perform to their obligations under the agreement. Failure to do so can result in legal action. A plaintiff in a breach of contract claim can seek monetary damages from the breaching party, potentially even its own attorney’s fees.
Of course, no homeowners’ association wants to end up in litigation with a vendor or contractor. A dispute is always costly — even if you eventually prevail with the litigation. In far too many cases, HOAs run into problems because they execute agreements without properly vetting the contract or vetting the vendor. Unfortunately, this could create serious problems for the association. Prior to executing a major agreement, it is best to consult with an experienced legal professional.
Contact Our Chicago, IL HOA Lawyers for Immediate Help
At Keough & Moody, P.C., our Illinois homeowners’ association attorneys are committed to providing reliable, solutions-oriented guidance to clients. If you have questions about contracts, we are ready to help. For a confidential consultation, please contact us today. With offices in Naperville, Chicago, and Tinley Park, we represent clients in Cook County, Will County, DuPage County, Kendall County, Kane County, McHenry County and Lake County.