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Common Interest Magazine

Published 8 times per year, Common Interest keeps you current with important issues and interesting topics concerning community associations in Connecticut. Guest authors, frequent contributors, and news fill the pages with information you need to get the most out of your community association.

 

 
       

Condo & HOA Governance, 2016, Issue 4 

  • The CAMMIEs
  • Supreme Court Holds that Foreclosure Policies Must be Adopted As Rules, Adam Cohen, Esq. 
  • Amateur Radio and Community Associations
  • A Spectacular Day in June + Golf
  • Planning and spending Maintenance Dollars, Pamela Bowman, CMCA
  • Community Association Manager Licensing - FAQ
  • Frequently Asked Questions: Income Taxes
  • When Bad Things Happen to Good Associations, Christine Segal, CMCA
  • Lost Memories, Timothy Wentzell, P.E.
  • The Ridge Homeowners Association, Paul DeGennaro, PCAM
  • Management Today - Better Living Through Technology

 

 


 

2016 ISSUE 4 - FEATURED ARTICLE: 

 

Planning and Spending Maintenance Dollars - Pamela Bowman, CMCA 

 

In these days of wanting to spend responsibly and efficiently, no complex is immune from the dilemma of available funds falling short of desired projects and expenditures. The Catch-22 of regular maintenance is to cut or postpone annual projects which may further impair the competitive position of the complex for sellers and for buyers. The challenge for community association managers and board members is to take actions that will yield the best project plan and pricing possible in an effort to stretch available maintenance funds to cover necessary maintenance needs.

 

Specify your needs

Every project requires a definition of exactly what needs to be done. This seems obvious, but even in these times, less than 50% of the requests for proposals our company receives provide written specifications. When we request specifications, the response “take a look and give your recommendations...” is given with great frequency. Without specifications, three proposals from three contractors, each based on an individually created specifications, will not yield three comparable bids. If the bids are not comparable there is no way of knowing which bid provides the best value. Best value is determined by creating one specification which is used to derive the price of all proposals. Price and service presented in each proposal best communicates the proposal of choice.

 

Don’t Delay

Successful community association managers and board members operate on a minimum of a six month lead time for upcoming projects. Let’s look closely at the benefits that are gained through their organization.

 

Communication:

Simply operating on a long lead time says a lot to a supplier. The act alone communicates the buyer is organized, thorough, prepared and knowledgeable. All of these attributes suggest decreased risk to the supplier. Pricing has little risk premium.

Accurate Budgets:

Association budgets reflect genuine pricing rather than estimates. There are few surprises. An association is not caught short of funds nor do they over allocate funds to a project depriving other deserving projects of completion.

 

Best Pricing:

Maintenance service is like any other product. Pricing is based on supply and demand. When the supply is high the price is low. When the supply is low the price is high. Maintenance supply is highest (and therefore cheapest) right at the end of the previous service season. The contractor has the greatest uncertainty of demand and is the most eager to sign contracts to reduce the uncertainty of the future. For summer services the best pricing is available in October through December. Winter projects obtain the best pricing in April and May. The association that makes a purchase decision for a summer project in June or July could be paying a premium for the timing of the purchase. The benefits of pricing can be extended through the use of multiyear contracts. The goal is to lock in pricing over a longer term with the protection the contractor must meet the rigors of a performance clause to renew the contract.

 
Sequencing:

Maintenance often requires the coordination of a number of projects which must be completed in a defined sequence. Early planning insures that each trade component can be scheduled in the proper order without delaying the overall project. A common example is accomplishing wood replacement prior to painting to avoid future costly touch ups.

 

Broadest Choice:

Early commitment allows for the selection of production month from the contractor of choice. The best contractors book up first and the preferred months of production are reserved the fastest. Those at the front of the line have the broadest selection.

 

In summary, use consistency and timing to the advantage of your association(s). Strive for the best value on each and every project and the reward will be available funds for the completion of a greater number of projects on the association’s wish list. Some associations set-up a calendar for their maintenance projects and preparation, this in turn is considered standard operating procedure for the board’s calendar and the process gets passed along from Board to Board.

 

Pamela Bowman, CMCA is Regional Manager for Prime Touch Services. She currently serves at the President-elect of CAI-CT and is the Co-Chair of the Education Program Committee.


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 Reserves, Finance & Communications, 2014, Issue 5

  • Legislative Update
  • Displaying the Flag by Adam J. Cohen, Esq.
  • Emergency Preparedness by Rich Bouvier
  • A Recipe for Financial Troubles by Marsha Elliott & Sam Tomasetti, CPA
  • The Checklist: Do Your Homework by Joel W. Meskin, Esq., CIRMS
  • The Importance of Proper Association Insurance Coverage
  • Technology is Renovation the Management Industry by Allen Borza
  • Building Codes, The Transition Period and Construction Defects by Timothy Wentzell, P.E.
  • Aging Trusses and Structural Repair Projects by Scott Wilton, P.E.
     
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Common Interest is the official magazine of CAI-CT

Published 8 times per year, Common Interest keeps you current with important issues and interesting topics concerning community associations in Connecticut. Guest authors, frequent contributors, and news fill the pages with information you need to get the most out of your community association.

  • Personal Power - Generator Policies by Adam J. Cohen, Esq.

  • The Treasurer and the Management Company by Marsha Elliott and Sam Tomasetti, CPA

  • Telling the Story of Construction Defects by Bob Gourley

  • A Matter of Time: How Property Managers Can Better Manage Their Time in the Demanding World of Homeowner Associations by Reg Babcock & Rich Wechter

  • Ice Dams Return by Tim Wentzell, P.E.

  • Pet Waste Management by Michael Laskowski

  • Is It Time to Replace Your Aging Decks? by Eric Churchill

  • Solar Panels in Condo Associations

  • Minutes Based on Robert's Rules

  • Condo Unit Financing Almost Killed Due to Reserve Contribution by Eric Boucher

  • more Upcoming Events

    8/3/2017
    Business Partner Ed (EDUCATED BUSINESS PARTNER DISTINCTION)

    8/3/2017
    CAM Ed - Legal Panel (Education for Community Association Managers)

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