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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 116715
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I am trying to resolve a dispute with my Homeowners association.

Resolved Question:

I am trying to resolve a dispute with my Homeowners association. Florida law states that an HOA must receive competitive bids before entering into any contract if the total expenditure exceeds 10 percent of the total annual budget. The HOA is not required to accept the lowest bidder, but competitive bids must be obtained.

In 2008, my HOA entered into a contract with a landscaper for an amount that is 2/3rds of our annual budget and did not solicit or obtain any competitive bids. The statute ( FL(NNN) NNN-NNNN) does have an exception as follows " A contract executed before October 1, 2004 and any renewal thereof, is not subject to the competitive bid requirements of this section."

The current landscape company has done all our work since approx. 2000. They sign a new contract every 2 to 3 years. The last new contract was signed in 2008. The contract made absolutely no reference to any previous or other contract. The new contract contains absolutely no language that it is a renewal of any previous contract. All the payment amounts, are different than any previous contract. In my opinion, it was a brand new contract and was in violation of the state law. The HOA is making the argument that since it was a renewal of a previous contract they did not have to get competitive bids.

Any opinion?
Submitted: 5 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 5 years ago.
The contract does not have to contain a clause that it is a renewal as long as the HOA can prove that this has been the same contractor since 2000 and it would still be considered a renewal because that is what it is. Just because the terms or prices of the contract may change, if it remains with the same contractor then it is still considered a renewal.

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