Posted by Robert H. Bell on 3/24/06

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My question relates to Florida Statutes - Homeowners'
Association Chapter 720, sub paragraph 720.3055.

Line 4 - "any contract that is not to be fully performed
within 1 year after the making thereof for the purchase,
lease, or renting of materials or equipment to be used by
the association in accomplishing its purposes under this
chapter or the governing documents, and all contracts for
the provision of services, shall be in writing."

Does this mean a contract IS required for the purchase of
materials or services over ten (10%) of the annual income
of the Homeowners' Asssociation before or after the first
year? My Homeowners Board of Directors does not soliciate
bids for anything and if I'm reading the Statutes
correctly they must by law solicate formal bids, requests
for quotation and develop a formal contract for those
materials or services? HELP!

This is the full paragraph...

720.3055 Contracts for products and services; in writing;
bids; exceptions.--
(1) All contracts as further described in this section or
any contract that is not to be fully performed within 1
year after the making thereof for the purchase, lease, or
renting of materials or equipment to be used by the
association in accomplishing its purposes under this
chapter or the governing documents, and all contracts for
the provision of services, shall be in writing. If a
contract for the purchase, lease, or renting of materials
or equipment, or for the provision of services, requires
payment by the association that exceeds 10 percent of the
total annual budget of the association, including
reserves, the association must obtain competitive bids for
the materials, equipment, or services. Nothing contained
in this section shall be construed to require the
association to accept the lowest bid.
(2)(a)1. Notwithstanding the foregoing, contracts with
employees of the association, and contracts for attorney,
accountant, architect, community association manager,
engineering, and landscape architect services are not
subject to the provisions of this section.
2. A contract executed before October 1, 2004, and any
renewal thereof, is not subject to the competitive bid
requirements of this section. If a contract was awarded
under the competitive bid procedures of this section, any
renewal of that contract is not subject to such
competitive bid requirements if the contract contains a
provision that allows the board to cancel the contract on
30 days' notice. Materials, equipment, or services
provided to an association under a local government
franchise agreement by a franchise holder are not subject
to the competitive bid requirements of this section. A
contract with a manager, if made by a competitive bid, may
be made for up to 3 years. An association whose
declaration or bylaws provide for competitive bidding for
services may operate under the provisions of that
declaration or bylaws in lieu of this section if those
provisions are not less stringent than the requirements of
this section.

Thanks in advance.
Bob Bell

Florida Statutes , 3/24/06, by Robert H. Bell.

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