When your community needs work done—whether it’s landscaping, roof repairs, or security patrols—the vendor contract is your safety net. But too often, board members or managers skip the fine print and sign too fast.
Here’s a quick guide to what you should always check before finalizing any vendor agreement:
✅ 1. Scope of Work
Make sure the contract clearly defines what the vendor is doing, how often, and what materials or tools they’ll use. Vague terms like “as needed” or “general maintenance” leave too much room for misunderstanding.
✅ 2. Licensing & Insurance
Request proof of:
- General liability insurance
- Workers’ compensation
- Proper licenses (especially for electrical, plumbing, or tree work)
No documentation? That’s a red flag.
✅ 3. Payment Terms
Is payment due up front, in milestones, or after the work is completed? Are there late fees? Make sure you agree with the schedule and that the community’s cash flow can support it.
✅ 4. Termination Clause
Can you cancel the contract without penalty? Look for terms like “termination for convenience” and the required notice period (e.g., 30 days). You don’t want to be stuck in a 12-month contract with a vendor who isn’t performing.
✅ 5. Response Time
For vendors handling repairs or emergencies (like plumbing or elevator service), define expected response times. For example: “Within 24 hours for non-urgent requests, and within 2 hours for emergencies.”
✅ 6. Warranties & Guarantees
Are parts or labor covered after the job is done? If so, for how long? Always get warranty terms in writing, not just verbally.
✅ 7. Dispute Resolution
If something goes wrong, how is the issue resolved? Mediation? Arbitration? Court? Knowing this upfront helps prevent long, expensive legal battles later.
✅ 8. Indemnity Language
This is legal talk for “who’s responsible if something goes wrong.” It should be clear who covers what, especially if a resident is injured or property is damaged.
Why It Matters (And How VMS Can Help)
Vendor mistakes or unclear contracts can cost your community thousands—or worse, open you up to legal risk. At Village Management Services (VMS), we work with hundreds of vetted vendors and review every contract to protect your community. From negotiating fair pricing to enforcing contract terms, our managers know what to look for—and what to avoid.
Let us take the guesswork (and risk) out of vendor management. Your residents deserve that peace of mind. Contact us now!
