When contractors perform consistently in a community, the property reflects that high level of care and potential issues are addressed proactively, preventing setbacks. If those vendors don't hold themselves to a high standrd, recurring problems can emerge and costs of addressing complications can be difficult to control.

At Associa, we have decades of experience with selecting and observing vendor performance, allowing us to understand what it takes to support an association and succeed. Download this ebook to understand the importance of having a proper vendor performance review system and access two templates for landscaping and maintenance to get you started!

The Different Types of HOA Vendors

Crucial to  operations, it’s important to understand what vendors you should be paying to serve your community. Some of the most common vendor services include:

• Landscaping, grounds maintenance, and snow removal
• General maintenance and repairs
• Insurance services
• Management services
• Technological services 
• Trash removal
• Cleaning and janitorial services 
• Legal and accounting 
• Capital improvement contractors
• Amenity services 

Related:  "8 Steps to Choosing the Right Vendors for Your Community"

How to Review a Vendor Contract

Before you review the performance of your vendors, you should understand what you signed up for. A contract audit takes time and a keen eye for detail. The fine print can unveil hidden costs, limit your options, or open the door to disputes. Paying close attention may save your association money, prevent misunderstandings, and give you leverage if issues arise.

Here are five things to check while reviewing vendor contracts:

1. Scope of service. Are all tasks clearly listed? Vagueness can lead to trouble.
2. Performance standards. Are deadlines or benchmarks spelled out? The contract should define the type of service and the quality you expect.
3. Contract term lengths. Are renewals automatic? Do they align with your HOA’s needs? Also, check the start and end dates and renewal terms.
4. Termination conditions. How can you exit the contract if unresolved issues continue? Ensure you’re not locked in with a bad vendor.
5. Price increase language. Is there a cap on annual increases? Additionally, you need to know if, when, and how prices might rise during the contract period.

RELATED: “9 Questions to Ask Before Signing a Service Contract”