HOA boards approve contractor bids on behalf of all homeowners. When bids are unreasonably high — or when only one bid is collected — every homeowner pays the difference. This tool helps you evaluate whether the numbers make sense before the vote.
A bid more than 40% above the expected high end deserves a detailed breakdown and at least two competing bids. An unusually low bid also needs scrutiny — below-market bids sometimes indicate scope gaps or a contractor who will change-order their way to a normal fee later.
The three-bid rule: Most well-managed HOAs require at least three bids for projects above a threshold (often $5,000-$10,000). If your board received only one bid for a major project, that is a process question worth raising at the next meeting.
Most HOA governing documents require a minimum of three bids for major projects, typically above $5,000-$25,000 depending on the association budget. Check your bylaws for your specific threshold.
A complete bid should specify: detailed scope of work, materials to be used (brand, grade, specifications), start and completion dates, payment schedule, warranty terms, and insurance certificates.
In most states, HOA financial records including contractor bids are available to members on request. Ohio HOA law (ORC 5312) requires associations to provide members access to financial records within a reasonable time.
Typical contractor markup on materials runs 15-35%. Overhead and profit is typically 10-20% on top of subcontractor costs. These are included in the ranges this tool uses.
This may constitute a conflict of interest and could expose the board member to personal liability. Review your state HOA law and governing documents. Document your concerns in writing to the board.
Squares of roofing (1 square = 100 sq ft)
Estimates only