Operations, Human Resources, and Contracting
Board and manager roles
Boards set policy; managers implement it. A management agreement should define scope, authority, reporting, fees, insurance, and termination. Trap: scenarios where a manager makes a policy decision or signs a contract without delegated authority - the manager's signature binds the association only within that authority.
Employment
Know the difference between employees and independent contractors using behavioral control, financial control, and the nature of the relationship. Misclassifying a worker to avoid payroll taxes and workers' compensation is a common and expensive error. Job descriptions, hiring, evaluation, and consistent discipline protect the association; employment laws on discrimination, accommodation, leave, and wages apply to associations as employers.
Contracting
Contracts need offer, acceptance, consideration, capacity, and legality, and must be in writing where the statute of frauds applies. Read scope of work, price, term, renewal, termination, indemnification, insurance, and warranty clauses. Use an RFP or bid comparison that weighs scope, references, licensing, and insurance against price.
Rule of thumb: the lowest bid is not the best bid; compare itemized scope, not bottom-line price.
Worked example: Three landscapers bid $4,000, $4,800, and $5,200 per month. The $4,000 bid excludes irrigation repair and spring cleanup. Totaled honestly, it costs more than the $4,800 bid. The board documents the scope comparison and awards to the middle bid - defensible because the reasoning is written down.