HOA Management Company Vendor Procurement and Conflict-of-Interest Questionnaire

An HOA management company may help a board find landscapers, roofers, plumbers, insurance professionals, reserve specialists, lawyers, accountants, security providers, and emergency contractors. That assistance can save directors time and improve consistency. It can also create hidden risk when the board does not understand how vendors enter the manager's network, whether related parties or referral payments exist, who evaluates bids, or who makes the final decision.

The goal is not to assume that every affiliation, rebate, volume arrangement, or preferred-vendor program is improper. The goal is to obtain written disclosure, compare the value and risk, preserve independent board judgment, and put the actual process in the management agreement and association records.

Professional standards can help frame the review. The Community Association Managers International Certification Board publishes standards for Certified Managers of Community Associations, including prompt written disclosure of actual or potential conflicts before a client selects or retains a related service. CAI materials also describe management as preparing proposals and screening applicants while the board retains final authority to hire and terminate vendors. Those standards apply only within their stated credential and disciplinary scope; they are not a substitute for the association's governing documents, contract, state law, or legal advice.

This questionnaire is general board education, not legal, accounting, tax, procurement, insurance, engineering, cybersecurity, construction, employment, or fiduciary advice. Requirements and duties vary by jurisdiction, governing documents, credentials, contracts, funding source, and project. Have association counsel and qualified professionals review material procurements, conflicts, and contract terms.

1. Ask who owns the procurement policy

Begin with governance rather than a vendor list.

1. Does the management company maintain a written vendor-procurement policy?
2. Does the association also have an adopted policy, and which document controls if they differ?
3. Which purchases require bids, board approval, owner approval, legal review, engineering specifications, or reserve-study consultation?
4. Which routine expenses may management approve within the adopted budget?
5. Which emergency expenses may management authorize, under what threshold, and with what later report?
6. Who may waive a bidding rule, and what written finding is required?
7. How are conflicts, related parties, compensation, and vendor incentives disclosed?
8. Who keeps the complete procurement file?

Request the policy, delegation matrix, approval thresholds, emergency procedure, and a redacted completed procurement file. A general promise to obtain "three bids" is not a complete policy.

2. Confirm the board's final authority

The management company may identify vendors, prepare a scope, solicit proposals, check documents, summarize options, and administer the contract. The board should still understand which decisions remain its own.

Ask the candidate to mark each step as manager, board, committee, professional adviser, or shared responsibility:

• define the need;
• write the scope;
• select the invitation list;
• answer bidder questions;
• open and log proposals;
• check licenses and insurance;
• evaluate technical compliance;
• compare price and exclusions;
• negotiate terms;
• select the vendor;
• sign the contract;
• authorize change orders;
• approve invoices;
• evaluate performance; and
• terminate or renew the relationship.

CAI's current ethics materials say community managers may prepare proposals and screen applicants, while the board has final authority in hiring and terminating vendors. Ask how the company preserves that distinction in practice and how it records the board's decision.

3. Require a written relationship map

Ask the management company to disclose every relationship that could reasonably affect, or appear to affect, a recommendation. The map should cover:

• common ownership or control;
• parent, subsidiary, affiliate, franchise, or joint-venture relationships;
• owners, officers, employees, or family members with a vendor interest;
• referral fees, commissions, rebates, credits, gifts, trips, meals, sponsorships, or marketing payments;
• national-account or volume-pricing arrangements;
• insurance, banking, payment, resale, collections, legal, maintenance, or technology partners;
• vendors required by the management company's platform or operating model;
• shared personnel, addresses, systems, or data;
• financial interests held by the assigned manager or decision maker; and
• compensation that changes based on which vendor, product, or payment method the association selects.

Do not accept "we use preferred vendors" as the complete answer. Ask who benefits, what the association receives, what alternatives exist, and where the arrangement is disclosed before selection.

4. Test the timing and quality of conflict disclosures

A disclosure that arrives after the contract is signed cannot support an informed decision. Ask:

1. At what point is a conflict disclosed?
2. Is it delivered in writing to the full board or only mentioned to one officer?
3. Does it identify the people and companies involved, the nature of the relationship, and the compensation or benefit?
4. Does it explain whether the association may select an unaffiliated alternative?
5. Is the disclosure renewed when ownership, compensation, or scope changes?
6. Does the interested person leave the evaluation or decision where appropriate?
7. Is the disclosure and board response retained with the procurement record?

The CAMICB standards provide a useful due-diligence benchmark for CMCAs: prompt written disclosure of actual or potential conflicts before the client selects or retains the related service. Ask a credentialed manager to explain how that standard is implemented. Do not assume the credential makes an undisclosed relationship impossible.

5. Separate compensation from association savings

A rebate or volume arrangement may reduce association cost, compensate the management company, or do both. The board needs enough information to tell.

Ask the company to identify:

• who pays the compensation;
• how it is calculated;
• whether it is tied to revenue, transactions, units, contracts, deposits, premiums, or renewals;
• whether the association receives a credit or lower price;
• whether the benefit appears on the invoice or management statement;
• whether the manager receives the benefit even if another vendor is available;
• whether staff incentives depend on adoption; and
• whether the arrangement survives termination of the management agreement.

Ask counsel and the association's accountant how the arrangement should be approved, documented, reported, and treated under the applicable contract and law. Avoid reducing the question to whether the payment is called a rebate, fee, discount, or marketing allowance.

6. Examine how vendors enter and leave the network

A preferred-vendor list can be useful only if it is maintained. Ask:

1. What minimum qualifications apply by trade?
2. Who verifies the legal entity, tax information, licenses, registrations, insurance, and geographic coverage?
3. How often are documents refreshed?
4. Are references or complaint histories checked?
5. How are sanctions, litigation, safety incidents, data breaches, financial distress, or ownership changes handled?
6. Who can add a vendor, and can an assigned manager add one alone?
7. What performance or compliance failure causes suspension or removal?
8. Can the association nominate a qualified local vendor?

Request a redacted vendor-onboarding checklist and the current review cadence. A certificate uploaded years ago is not current qualification evidence.

7. Test scope development

Poor bids often begin with a poor scope. Ask who will inspect the property, identify assumptions, quantify the work, distinguish mandatory from optional items, and define acceptance.

For material construction or technical work, ask when the company recommends an independent engineer, architect, reserve professional, insurance adviser, lawyer, or other specialist. A manager can coordinate professionals but should not invent specifications outside the manager's qualifications.

The scope should address locations, quantities, drawings, existing conditions, access, resident coordination, protection, permits, testing, closeout, warranties, alternates, schedule, insurance, safety, payment milestones, retainage when appropriate, and change-order rules. Require every bidder to identify exclusions and proposed substitutions.

8. Compare the bid process, not only the bid count

Three numbers are not necessarily three comparable proposals. Ask:

• how vendors are invited;
• whether every bidder receives the same scope and addenda;
• whether site visits and questions are shared fairly;
• how deadlines and late proposals are handled;
• who opens and logs submissions;
• whether related or affiliated bidders are identified;
• how incomplete bids are treated;
• whether the incumbent receives an unfair information advantage;
• how alternatives and exclusions are normalized; and
• when negotiation begins.

Request the bid log, question log, addenda, proposals, compliance review, comparison, recommendation, minutes, and contract. The board should be able to reconstruct what was compared and why the selected proposal fit the association.

9. Use an evidence-based evaluation matrix

Price matters, but the cheapest incomplete proposal may be the most expensive selection. Score the same criteria for every finalist:

• scope compliance;
• qualifications and relevant experience;
• licenses and registrations;
• insurance and bonding where appropriate;
• safety and claims history;
• staffing and supervision;
• schedule and capacity;
• warranty and closeout;
• resident and property protection;
• communication and reporting;
• cybersecurity and payment controls;
• references and prior performance;
• exclusions and change-order exposure;
• total evaluated cost; and
• disclosed conflicts or compensation.

Require a citation to the proposal or evidence for each score. A recommendation should distinguish facts, judgment, exceptions, and unresolved questions.

10. Verify licenses, insurance, and entity identity

Ask how the management company confirms that the contracting entity matches the proposal, tax form, insurance, license, bank account, and person signing. Check the relevant government or licensing source directly when the work requires a license.

Insurance review should consider current dates, named insured, carrier, limits, applicable coverage, exclusions, additional-insured or waiver requirements when appropriate, and contract consistency. A certificate by itself may not amend coverage or prove that every project risk is insured. Use the association's insurance adviser and counsel for material work.

Record who performs the verification, when it occurs, what evidence is retained, and what happens if coverage expires during the job.

11. Protect vendor setup and payment instructions

Vendor procurement is also a payment-fraud risk. Ask the management company to demonstrate:

1. Who can create a vendor record?
2. Who can change the address or bank instructions?
3. How is a change independently verified using a trusted phone number or known contact?
4. Can one person create the vendor, approve the invoice, release payment, and reconcile the bank?
5. What multifactor authentication and approval controls apply?
6. How are duplicate invoices detected?
7. How are emergency payments reviewed after the event?
8. How are failed, returned, or redirected payments handled?

The answer should not rely only on an email thread. Require segregation of incompatible duties and an audit trail that the board or independent reviewer can examine.

12. Review contract authority and terms

Ask who drafts, reviews, signs, stores, and calendars each contract. The board should understand:

• exact parties and scope;
• term and renewal;
• pricing and escalation;
• deposits, milestones, retainage, and final payment;
• insurance and indemnity;
• licensing and compliance;
• subcontractors;
• resident and property protection;
• data security and confidentiality;
• ownership of records, work product, keys, credentials, and materials;
• warranties and correction obligations;
• change orders;
• dispute procedures;
• termination and transition; and
• closeout documents.

Avoid allowing proposal language, online terms, work orders, and the signed contract to conflict without a stated order of precedence. Use qualified legal review for material or high-risk agreements.

13. Control change orders

Change orders can defeat an otherwise competitive procurement. Ask:

• who may identify a change;
• what documentation is required;
• who verifies quantity, cause, price, schedule, and scope impact;
• what emergency exception applies;
• who may approve at each threshold;
• whether work can proceed before written authorization;
• how cumulative changes are reported; and
• how the original budget and reserve plan are updated.

Require the original condition, requested change, reason, alternatives, labor and material detail, schedule effect, funding source, approval, and revised contract value. Track patterns by vendor and project manager.

14. Monitor performance after selection

Procurement does not end at contract signature. Ask the management company how it records:

• start and completion dates;
• milestones and inspections;
• resident complaints and property damage;
• safety or access incidents;
• missed service;
• photographs and field reports;
• change orders;
• invoice accuracy;
• permit and testing status;
• warranties and closeout documents; and
• unresolved corrections.

For recurring vendors, request a quarterly or annual scorecard. For projects, require a closeout checklist before final payment. Use qualified professionals to verify technical acceptance when the manager is not qualified to do so.

15. Examine emergency procurement

An emergency may justify immediate action, but it should not erase control. Ask:

1. What qualifies as an emergency?
2. Who may dispatch and spend at each threshold?
3. Which prequalified vendors and alternates are available after hours?
4. How are surge pricing and unavailable capacity handled?
5. What evidence is captured during mitigation?
6. When must the board be notified?
7. When is a written contract, ratification, or competitive follow-on scope required?
8. How are insurance, permits, professional design, and permanent repair separated from initial stabilization?

The manager should preserve the time, condition, authority, vendor, work, photographs, cost, communications, and next decision. Emergency dispatch should not silently become an unlimited reconstruction contract.

16. Test board and manager conflicts separately

Vendor conflicts do not arise only from management. Ask how the process handles a director, committee member, employee, owner, or family member with a vendor relationship.

The procedure should identify the relationship, obtain current legal guidance, document disclosure, restrict access to confidential bids where appropriate, address participation in discussion and voting, and preserve the minutes and decision. Do not assume that a management-company policy resolves the board's own obligations.

17. Preserve the association's records

The association should receive a complete procurement record in a usable format. Ask for:

1. Need statement and approved budget.
2. Scope, drawings, and professional reports.
3. Invitation list and relationship disclosures.
4. Bidder questions and addenda.
5. Proposals and qualification evidence.
6. Evaluation matrix and recommendation.
7. Board materials, minutes, and approval.
8. Signed contract and amendments.
9. Insurance, licenses, permits, and tax forms.
10. Field reports, invoices, approvals, and payments.
11. Change orders and dispute records.
12. Testing, warranties, manuals, as-builts, and final acceptance.

Confirm retention, privacy, security, export, and ownership in the management agreement. Association records should not disappear when the assigned manager or management company changes.

18. Put commitments in the management agreement

The agreement should address:

• procurement duties and exclusions;
• spending and contracting authority;
• bid thresholds and exceptions;
• vendor qualification;
• affiliated and preferred vendors;
• conflict and compensation disclosure;
• board approval and contract signature;
• emergency purchasing;
• invoice and payment controls;
• change orders;
• performance monitoring;
• record ownership and access;
• management-company fees or markups;
• cooperation with independent professionals; and
• transition of open contracts, projects, credentials, and claims.

Proposal assurances should be converted into contract language, an exhibit, or an adopted procedure. A verbal promise from a salesperson may not bind the operating team.

19. Score every finalist the same way

One practical 100-point model is:

• Governance and authority - 15 points. Delegation, board control, exceptions, and records are clear.
• Conflict and compensation transparency - 20 points. Relationships and benefits are disclosed early, specifically, and in writing.
• Vendor qualification - 15 points. Entity, license, insurance, safety, capacity, and references are verified and refreshed.
• Competitive process - 15 points. Scopes, invitations, questions, bids, normalization, and recommendations are consistent.
• Contract and change control - 15 points. Terms, signing, amendments, change orders, and closeout are controlled.
• Payment and fraud controls - 10 points. Vendor setup, instruction changes, approvals, release, and reconciliation are separated.
• Performance and transition - 10 points. Work is measured, records are portable, and open obligations transfer cleanly.

For each score, record the answer, evidence requested, evidence received, exception, risk owner, and contract commitment. Do not award full credit for a narrative without current evidence.

20. Red flags to investigate

• "Preferred vendor" is used without written relationship or compensation disclosure.
• The disclosure appears only after the board selects the vendor.
• The manager says the board must use an affiliated service without showing the contract basis and alternatives.
• One person can add a vendor, change bank details, approve invoices, release payment, and reconcile cash.
• All bidders receive different scopes or private information.
• The recommendation compares price without exclusions, schedule, qualifications, or total cost.
• Vendor insurance or licenses are expired or do not match the contracting entity.
• Emergency authority has no threshold or later board review.
• Change orders proceed before documented authorization.
• Management receives a rebate, markup, commission, or volume benefit that is not clearly disclosed.
• Contracts, bids, and project records remain in personal email or a manager-owned account.
• The agreement does not require delivery of open contracts, warranties, credentials, disputes, and vendor records at transition.

21. Final evidence request

Before selecting a management company, request:

1. Procurement and conflict-of-interest policies.
2. Delegation and approval matrix.
3. Written description of affiliated and preferred-vendor programs.
4. Compensation, rebate, referral, and markup disclosure form.
5. Vendor onboarding and annual-review checklist.
6. Redacted request for proposal and bid comparison.
7. Redacted conflict disclosure and board response.
8. Vendor bank-instruction verification procedure.
9. Emergency procurement and later-review workflow.
10. Recurring-vendor scorecard or project closeout file.
11. Sample association export containing contracts and procurement records.
12. Proposed management-agreement language covering the commitments.

Give every finalist the same deadline and follow-up questions. Distinguish evidence received from evidence promised after selection.

22. The board's decision standard

The strongest management company is not necessarily the company with the longest preferred-vendor list or the most centralized purchasing. It is the company that can show how a recommendation is made, disclose interests before the decision, protect the board's authority, verify vendor qualifications, control money, document performance, and return a complete record to the association.

A transparent affiliated arrangement may be acceptable after informed review. An undisclosed arrangement is a governance problem even when the vendor performs well. The board's task is to understand the relationship, compare alternatives, document the decision, and monitor the result.

Sources

• CAMICB Standards of Professional Conduct
• CAMICB standards and clarification PDF
• CAI filing an ethics complaint
• CAI board relations: avoiding conflicts of interest
• CAI rights and responsibilities for better communities

Source pages and standards were reviewed October 24, 2026. Verify current versions, credential status, jurisdiction-specific duties, and contract language before relying on them.