Associations enter into all sorts of contracts for many types of projects - landscaping, roof repair, pool maintenance and repair, and siding, to name just a few. Many of these contracts involve large sums of money and a major amount of work. In order to protect the Association and its investment, the Association should ensure that it has an effective contract with the service provider. These contracts should always be in writing (parties tend to differ on the actual terms of an oral agreement), incorporate all the material terms and conditions of the transaction, and contemplate how the parties want to handle foreseeable events that may occur during the performance of the contract. This outline is designed to guide associations in choosing a contractor and in negotiating a contract. Although an association does not necessarily need an attorney to negotiate the entire contract, it is always a good idea to have an attorney review the contract before signing to ensure the association is protected.

The following is an overview of typical provisions and concerns which an association, through its Board of Directors and manager, should consider when entering into vendor and construction contracts:

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