Every condo board hires vendors: landscapers, snow removal, janitorial, elevator maintenance, roofers, masons. Choosing well saves money and headaches. Choosing poorly — or choosing without a clear process — invites cost overruns, disputes and owner suspicion.
Here's a practical approach to getting and comparing bids, from finding qualified bidders to signing the contract and managing the work, along with the Illinois rules that apply.
Why a formal bid process matters
A clear bid process does three things:
It gets better value. Competition sharpens pricing, and a written scope ensures you're paying for exactly what you need.
It protects the board. A documented process is strong evidence that the board met its fiduciary duty of care.
It builds owner trust. Owners who can see how a vendor was chosen are far less likely to suspect favoritism.
How many bids?
The Illinois Condominium Property Act doesn't set a minimum number of bids for condominium contracts. Your declaration or bylaws might, so check them. As a practical standard:
Routine, low-cost work: one qualified quote, or an existing vendor under contract, is usually fine.
Service contracts and mid-size projects: get at least three bids.
Major capital projects: get three or more bids based on a written scope, ideally prepared by an engineer or architect.
Three bids gives the board a sense of the market without making the process endless. If you can only get one or two, document why — for example, a specialized elevator repair with few qualified firms.
Consider adopting a written purchasing policy that sets these thresholds in dollar terms, so the manager and board know when bids are required.
Finding qualified bidders
Good bids start with good bidders. Sources include:
Your management company's vetted vendor list.
Your engineer or architect, for capital projects.
Other buildings in the area — board members and managers often share recommendations.
Trade associations and licensing boards, to confirm credentials.
Before inviting a contractor to bid, confirm they're licensed where required, carry appropriate insurance, have experience with buildings like yours, and can handle the size of the job.
Start with a written scope of work
The biggest reason bids are hard to compare is that each contractor bid on something slightly different. Fix that with a written request for proposal (RFP) that spells out:
the exact work to be done, with quantities and materials;
the schedule and working hours;
site access, staging and resident notification;
warranty requirements;
insurance requirements;
payment terms; and
the deadline and format for bids.
For large projects, an engineer's specifications are worth the cost — they make the bids truly comparable and give the board someone to supervise the work.
Hold a pre-bid walkthrough
For anything beyond routine work, invite all bidders to tour the site at the same time. It gives everyone the same information and lets contractors ask questions. If a question changes the scope, send a written addendum to every bidder so the bids stay comparable.
Service contracts need a scope too
Recurring contracts — janitorial, landscaping, snow removal, elevator maintenance — benefit from a written scope just as much as capital projects. Spell out frequency, standards, response times and what's included. For snow removal, for example: at what accumulation plowing starts, which areas are cleared first, how salting is handled, and how extra storms are billed.
Comparing bids: look beyond price
Lay the bids out side by side and compare:
1. Scope. Did each bidder include everything in the RFP? Note exclusions and allowances.
2. Price. Base price, unit prices for extra work, and any contingencies.
3. Schedule. Start date, duration and penalties for delay.
4. Qualifications. Experience with similar buildings, licensing, references.
5. Insurance. Coverage types and limits.
6. Warranty. Length and what it covers.
7. Payment terms. Avoid large up-front deposits; tie payments to completed milestones and hold retainage until final completion.
The lowest bid isn't always the best value. If the board picks a higher bid, write down why — that record matters if owners later ask.
A simple comparison matrix
Build a one-page table with a column for each bidder and rows for each factor above. Add a row for "exclusions" and a row for "questions to clarify." Share the matrix with the board before the meeting. It makes the discussion faster and the decision easier to explain.
Red flags in bids
A price far below the others, which may signal a missed scope item or a contractor who plans to make it up in change orders.
Vague descriptions like "repair as needed" without quantities.
Large allowances or exclusions that shift risk back to the association.
Requests for a large deposit before work starts.
Reluctance to provide references or proof of insurance.
Pressure to sign quickly.
Check references
For significant contracts, call at least two or three references — ideally other condo associations. Useful questions:
Was the work completed on time and on budget?
How did the contractor handle problems or changes?
How did they communicate with residents?
Did they clean up and protect the building?
Were there warranty issues, and how were they handled?
Would you hire them again?
Insurance requirements
Under Section 12(i) of the Act, contractors and vendors (other than public utilities) with contracts over $10,000 a year must provide certificates of insurance naming the association, its board and its managing agent as additional insureds. Collect the certificate before work starts, and track expiration dates for ongoing vendors.
Even for smaller jobs, it's wise to confirm that the contractor carries general liability and workers' compensation coverage. An uninsured worker injured on the property can create a claim against the association.
Conflicts of interest
Section 18(a)(16) restricts contracts with a board member, or with a company in which a board member or their spouse, parents or children hold 25% or more. The board must notify owners of its intent within 20 days of deciding to enter such a contract, and owners with 20% of the votes can petition within 30 days for an election to approve or disapprove it.
Even below the 25% threshold, any board member with a personal or business connection to a bidder should disclose it and step out of the decision. Board members also shouldn't accept gifts or favors from bidders.
Petition rights on big improvements
If a project is an improvement over the original — not just replacement — and isn't an emergency or legally required, and it costs more than 5% of the annual budget, owners with 20% of the votes may petition within 21 days of the board's approval for a meeting to consider it (Section 18.4(a)). Additions and alterations not in the budget require a two-thirds vote of all owners if funded by a special assessment. Build this into the project timeline.
Contract essentials
A written contract protects the association when things don't go as planned. For significant work, make sure it covers:
Scope and specifications, incorporated by reference from the RFP.
Price and payment schedule, tied to milestones, with retainage held until completion.
Change orders: all changes must be in writing and approved before work is done.
Schedule, including start and completion dates and what happens if they're missed.
Insurance and indemnification, naming the association as additional insured.
Warranty terms.
Lien waivers: require waivers from the contractor and its subcontractors and suppliers with each payment, so the association isn't exposed to liens from unpaid subs.
Permits and code compliance, with the contractor responsible for obtaining permits.
Termination rights for the association if work isn't performed.
Resident protections: work hours, noise, cleanup, access and protection of common areas.
Have your attorney review contracts for large projects, and be cautious about signing a contractor's standard form without changes.
After you choose
Sign a written contract that incorporates the scope, schedule, warranty, insurance and payment terms. Have your attorney review contracts for large projects.
Approve it in an open meeting and record the vote in the minutes. The board can discuss vendors in closed session, but the vote must be open.
Notify owners and residents about the project schedule and any disruptions.
Monitor the work and approve payments only for work completed.
Keep the file — RFP, bids, comparison and contract — as part of the association's records.
Managing ongoing vendor relationships
The bid is only the beginning. For service contracts:
Review performance at least annually against the contract's standards.
Track contract end dates and renewal terms, especially automatic renewals.
Rebid periodically — many associations rebid major service contracts every three to five years, even when they're happy, to confirm pricing is competitive.
Keep certificates of insurance current.
Document problems in writing as they happen, so the board has a record if it needs to terminate.
For owners: understanding the process
Owners can ask how a vendor was selected. Contracts currently in effect are association records owners may inspect under Section 19, and board votes on contracts happen in open meetings. If you have experience in construction, engineering or a relevant trade, consider volunteering for a building or project committee — boards value that expertise.
Frequently asked questions
Does Illinois require three bids?
The Act doesn't set a minimum for condominium contracts. Check your declaration and bylaws, and consider adopting a purchasing policy.
Should we always choose the lowest bid?
No. Choose the best value, considering scope, qualifications, schedule, warranty and references, and document the reasoning.
Can a board member's company bid?
If the board member or immediate family hold 25% or more of the company, the Act's notice and petition process applies. Any connection should be disclosed, and the board member should recuse.
Do we need an engineer?
For major capital projects — roofing, masonry, garages, structural work — an engineer's scope and oversight usually pays for itself in comparable bids and better-quality work.
The bottom line
A clear scope, qualified bidders, multiple comparable bids, an honest comparison, a solid contract and a documented decision protect the association's money and the board's credibility. It's more work up front, and much less work when something goes wrong.
Related reading:
Fiduciary Duty for Illinois Condo Board Members: What It Means and How to Protect Yourself
Special Assessments in Illinois Condos: What the Board Can Do on Its Own, and When Owners Get a Vote
Rising Condo Insurance Costs in Illinois: What the Law Requires and What Boards Can Control
How Much Should an Illinois Condo Association Keep in Reserves?
Pimmit Run Management runs the bid process for Illinois condo associations, from writing scopes to collecting bids, comparing them side by side and tracking vendor insurance. Contact us before your next project.
This article is general information, not legal advice. Have your association's attorney review significant contracts.
This article is general information, not legal advice. Consult your association's attorney about your specific situation.