Efficient Management of Condo Corporations: Balancing Cost and Service Quality

Condo corporations are for the most part large entities that require significant effort to maintain and repair the property. This involves bringing in many trades to do the required work, both on a regular schedule and for day-to-day work as may be necessary. The boards will budget for all such work accordingly, typically in three main categories: Contracted Services, Repairs and Maintenance, and planned Reserve Fund major repairs and replacements.

Contractor selection

The selection of contractors for contracted services is typically made through a competitive bidding process, where the board evaluates and selects the most cost-effective option. The same approach is applied for reserve fund capital expenditures, where an engineer is hired to prepare the bidding documents and solicit proposals from multiple companies. The sealed bids are then presented to the board for transparency and reviewed by the engineer for a final recommendation.

Repairs and Maintenance

The Repairs and Maintenance category is distinct from the other two categories. Its budget is established based on past trends, though actual expenses can often vary greatly due to unexpected repairs. These repairs are performed on a daily basis, often with tight deadlines.

Therefore, soliciting multiple bids for these repairs can be challenging. Common examples include repairs within units due to damage from the common elements or other units. Inviting multiple vendors to provide quotes is often not practical. Additionally, as these repairs are typically one-time occurrences, contractors may not view them as a long-term opportunity and may not be motivated to offer the best service at a competitive price.

Pre-screen the various trades

This is why it is crucial to pre-screen several trades for general property repairs and build a long-term relationship with the most suitable one. Maintaining a backup trade and giving them occasional work can provide a means of comparison and keep the primary contractor accountable. Exclusive service from one or two trades offers numerous benefits, including quicker response time, improved familiarity with the property, higher work quality, greater flexibility, and more reasonable pricing.

Consistent service quality is essential

Consistent service quality is also important and can be achieved through the contractor’s commitment to the long-term relationship. By being assured of steady business from the property, contractors are more likely to provide superior service and even include additional work at no extra cost. It’s not uncommon for a committed contractor to perform free inspections and go beyond the initial scope of repairs quoted.

Avoid complacency

However, complacency should be avoided. Regular evaluation of all trades and the relationships with them should be conducted to ensure the owners are getting optimal value without sacrificing service quality. Negotiations with contractors to reach a mutually beneficial agreement are always an option. Paying a premium for quality service is not always a disadvantage in the long run, as it saves time, energy, and provides consistent quality, rather than constantly searching for the lowest price and sacrificing workmanship and reliability.