Condo Media - August 2021 - 19

COMMUNITY ASSOCIATIONS
are under a great deal of pressure to
ensure that the community is run well.
A considerable amount of work goes
into maintaining property standards
across all areas of the community. In
order to maintain property standards,
most community associations select
vendors and award contracts for various
services, including, for example,
community management, pest control,
common area repairs, painting, bookkeeping,
tax preparation, landscaping,
and snow removal, the last two being
especially important during the fall
and winter months in New England.
Associations should consider
the following during the vendor
contracting process:
l Scope of Services
In a vendor contract, a " scope of
services " provision should be explicitly
included. A standard scope
of services provision should include:
a purpose statement or objectives,
the scope of work, price, schedule,
key assumptions, and acceptance.
The purpose of the provision is
to avoid ambiguities that could
potentially lead to disputes with
the vendor.
l Payment Terms
The vendor agreement should also
contain a provision describing the
payment terms including the cost
of services, when payments are due,
to whom payments shall be made,
whether penalties will apply for
late payments, and the remedy for
non-compliance with contractual
payment obligations.
l Dispute Resolution
A contract dispute with a vendor can
be very time consuming and costly
for an association. A vendor contract
should have a dispute resolution
clause, which is a written understanding
between the association and the
vendor that specifies what will occur
in case of a disagreement. A dispute
resolution clause should require the
parties to provide notice to the other
party of an issue in a specified way
(e.g. notice should be provided in
writing to the association's property
manager). It also typically includes
language providing that the dispute
will be resolved through mediation,
If a vendor is uninsured and an accident
or injury occurs on the job,
this could subject the condominium
to liability. Proof of insurance
for vendors should be required with
all hires, even with mundane jobs.
Accidents can happen in all types
of work, no matter which type.
Once the vendor provides proof
of insurance, there are two primary
insurance-related objectives for
community associations to keep in
mind. The first objective is to make
sure the association is formally
added as an Additional Insured
and is afforded the protections of
the policy itself. Having a vendor
If a vendor is uninsured and an accident or injury
occurs on the job, this could subject the condominium
to liability. Proof of insurance for vendors should be
required with all hires, even with mundane jobs.
in which a neutral third party facilitates
discussion between the association
and the vendor, or for arbitration,
in which an arbitrator makes a
determination as to the parties' rights
under the contract. Furthermore,
a well-written dispute resolution
clause will delay or limit the ability of
the parties to file suit until a certain
time and will dictate in what forum
each party can institute an action.
l Insurance
When hiring a vendor, a community
association should always ensure
that the vendor is fully insured.
provide a certificate of insurance
(COI) that lists the association
as being an Additional Insured
does not confer the full rights
and protections under the vendor's
policy. A COI is a document that
evidences that someone else has
insurance but does not confirm
that the condominium association
has been formally added to the
vendor's policy. To enjoy the
same insurance protections
as the original policy holder,
the association must make sure
it is named as an Additional
Insured on the vendor's policy.
ow
or Contracts
IT'S ALL IN
THE DETAILS BY BRENDAN DALTON, ESQ.
August 2021 CONDOMEDIA 19
Condo Media - August 2021

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