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10 Vendor Contracts You Need to Review Right Now

Contracts, hands, and building schematics sitting on a work table.

During budget season, reviewing vendor contracts should be at the top of your board’s priorities list. Without regular review, a homeowners’ association (HOA) risks price hikes, service gaps, and even legal issues. Read on to learn the 10 vendor contracts that have the biggest impact on your budget and discover best practices for reviewing, renewing, and renegotiating them.

What Is a Vendor Contract?

A vendor contract is a written agreement between an organization and a service provider that defines exactly what services will be delivered, how they’ll be delivered, and how much they’ll cost.

What is the difference between a contract and an SLA?

A vendor contract provides the overarching rules, while the service-level agreement (SLA) digs into measurable performance standards for vendors. For example, an SLA might detail how quickly a vendor must respond to a broken gate or complete a landscaping task. In contrast, a vendor contract outlines the overall terms and conditions of the relationship between the vendor and an association, including:

  • Renewal terms

  • Termination clauses

  • Liability protections

  • Dispute resolution procedures

  • Penalties for non-performance

How to Review a Vendor Contract

A vendor contract audit takes time and a keen eye for detail. The fine print can unveil hidden costs, limit your options, or open the door to disputes. Paying close attention may save your association money, prevent misunderstandings, and give you leverage if issues arise.

Here are five things to check while reviewing vendor contracts:

  1. Scope of service. Are all tasks clearly listed? Vagueness can lead to trouble.

  2. Performance standards. Are deadlines or benchmarks spelled out? The contract should define the type of service and the quality you expect.

  3. Contract term lengths. Are renewals automatic? Do they align with your HOA’s needs? Also, check the start and end dates and renewal terms.

  4. Termination conditions. How can you exit the contract if unresolved issues continue? Ensure you’re not locked in with a bad vendor.

  5. Price increase language. Is there a cap on annual increases? Additionally, you need to know if, when, and how prices might rise during the contract period.

RELATED: “9 Questions to Ask Before Signing a Service Contract”

Construction workbench with laptop, hardhat, and workers in the background.

The 10 Types of Vendor Contracts You Need to Review Now

There are 10 vendor contracts that have the biggest impact on your bottom line. Crucial to community operations, it’s important to understand what to look for in each agreement. The 10 contracts you need to review now include:

1. Landscaping, Grounds Maintenance, and Snow Removal

Homes with excellent curb appeal can sell for 7% more than similar homes with poor curb appeal. Because an HOA’s grounds affect property values, landscaping vendors need to be vetted regularly. Look for seasonal prep and snow removal clauses in your landscaping contract and confirm year-round coverage, so you’re adequately protected for the entire year.

2. General Maintenance and Repair Services

General maintenance and repair services may cover pools, HVAC systems, and other tasks. Make sure emergency repair response times and protocols are in writing. A maintenance contract should also clarify who pays for parts versus labor and list specific equipment and features that need ongoing attention.

Free Download: “Seasonal HOA Maintenance Tips”

3. Insurance Policies

Routinely reviewing your HOA insurance policy is a non-negotiable. A survey on HOA insurance finds that insurance premiums now account for more than a third of HOA operating budgets. Always check premium amounts, coverage levels, deductibles, and exclusions. Make sure the policy aligns with state requirements and protects both board members and the community. Verify annual renewal requirements, so everyone knows what’s protected and when.

4. Management Services

Your management company often oversees vendors on your behalf. Confirm their responsibilities and legal obligations, reporting timelines, and oversight. Look for key clauses in vendor contracts that detail dispute resolution. Also, pay attention to who’s keeping resident records and enforcing the rules. Ensure that reporting timelines, management fees, and scope are clearly marked.

5. Technology Tools

From accounting software to access control systems, technology is everywhere. Review your software vendor contracts to verify data security protocols and upgrade schedules. Don’t forget to check exit terms if you switch systems.

MUST READ: “Top Tech Solutions Every HOA Should Have”

6. Trash Removal

Confirm recycling terms, extra fees for large pickups, and holiday schedules. Missed pickups create resident frustration—and added expense.

7. Cleaning and Janitorial Services

Cleaning and janitorial services are essential for clubhouses, fitness centers, and offices. Spell out responsibilities (vendor vs. HOA). List exact spaces to be cleaned and deep cleaning schedules. Request documentation of service frequency as part of the vendor contract form.

8. Legal and Accounting

Expert support for compliance, disputes, and financial reviews is critical. Assess billing structures and request a vendor agreement example to compare options. Agreements should mention confidentiality clauses and deadlines for audits and/or tax filings.

9. Major Capital Improvement Contracts

Big-ticket projects, such as roofing, paving, and painting, can carry significant risks. Confirm warranties, completion timelines, and payment schedules are tied to milestones. Your attorney should review these before signing.

Additionally, a lien release clause may protect you from double payment, mitigate legal risks, and ensure project financing (if you’re using a loan for the project).

10. Amenities Services Contracts

Amenity service contracts, including lifeguards, gym equipment, and security agreements, directly affect resident satisfaction. Examine staffing certifications and qualifications (such as lifeguards and security staff), equipment maintenance obligations, and liability coverage. Include SLAs for response times; safety is vital in these agreements.

Best Practices for Negotiating Vendor Contracts

A contract review can prevent disputes and help you meet deadlines. It’s after a thorough review of vendor contracts that you can decide to renew or terminate the contract. At this stage, it’s best practice to:

  • Start the renewal process early. Give yourself plenty of time to negotiate and avoid any fees that may be added for last-minute renewals.

  • Adhere to the procedures outlined in each contract. Straying away from the standard process might derail your efforts and lead to legal trouble.

  • Document every step. You’ll want to be covered if something unexpected occurs.

  • Talk with your HOA attorney. Get legal advice from a trusted HOA attorney if you have questions about the accuracy of the contract or legal compliance.

8 Steps to Choosing the Right Vendors for Your Community

From the look of the lawns to the safety of the pool, vendor contracts affect every corner of your community. By reviewing your vendor contracts now, your HOA can avoid overspending, improve service quality, and safeguard the community’s future.

Want more help choosing the right vendors? Download 8 Steps to Choosing the Right Vendors for Your Community for a straightforward guide on vendor decision-making. It includes topics such as outlining the bidding process and performance tracking. This resource was written by Associa. Associa was recognized as a US Best Managed Company.