Can a Board Member Bid on a Maintenance Job

[dana bouwman]

Check your condo bylaws to see if there is a restriction on conflicts of interest.

A board member with a conflict should recuse themselves from voting on that topic.

If the board member is hired by the corporation it would be a good idea to disclose it in the financial statements.

Please spread the word!

[Terry Gibson]

I agree with Dana!

Board minutes need to clearly define that the board member (potential bidder) was not involved in any discussions OR decisions.

Full transparency is needed.

Questions:

Do they have the experience?

Does the work require a licence to do the job, e.g. plumber, electrician etc?

Insurance?

Worker’s Compensation coverage.

Please spread the word!

[Mark Hambridge]

As Terry and Dana said … and:

The questions of conflict of interest and ability to do the job should be seriously considered. I am aware of a situation similar to Brian’s where the board immediately put into effect a policy that the family member was disqualified from doing such work. The bylaws are now under review, and I expect that will be included in the revised version.

A ‘Best Practice’ might require three bids for any work, with the bidders to remain anonymous until after the decision is made based on qualifications and experience (not necessarily price). Sometimes the cheapest offer isn’t the best offer, considering the nature of the work.

Before I immigrated to Canada, it was common to see in advertisements “Canvassing will disqualify”, meaning that a bidder or job applicant who spoke to the board members in advance of the decision automatically disqualified themselves from the contract or appointment. In Brian’s case, this would have already disqualified the board member.

Please spread the word!