The Condominium Manager’s Role as an Advisor to the Board
A condominium manager acts as an advisor to the board but does not have decision-making authority unless explicitly granted by the condominium board or outlined in the management agreement. Their key responsibilities include:
Providing recommendations on service providers based on experience and due diligence.
Ensuring compliance with the Condominium Property Act (CPA) and board policies.
Coordinating the procurement process, obtaining bids, and managing contracts on behalf of the board.
Under the Real Estate Act Rules, a condominium manager must always act in the best interests of the condominium corporation, ensuring that their actions comply with governance requirements.
Following Board-Directed Processes in Procurement
Understanding the Board’s Procurement Policies
Each condominium corporation may have specific procurement procedures outlined in its bylaws or governance policies. The condominium manager must:
Follow written procurement guidelines for contractor selection.
Ensure competitive bidding when required.
Document all financial transactions related to hiring service providers.
Steps in the Procurement Process
To ensure transparency and fairness, the following process should be followed:
Identify the service needed and gather project details (scope, budget, timeline).
Solicit bids or proposals from qualified contractors.
Present recommendations to the board for approval.
Ensure proper documentation is maintained, including board resolutions.
Monitor contract performance and report updates to the board.
When Board Approval is Required for Contracts and Expenditures
Condominium managers must obtain board approval for most financial transactions related to hiring contractors and service providers. Board approval is generally required for:
Major repairs and capital expenditures, such as roof replacements or elevator maintenance.
Long-term contracts, including janitorial services, security, and landscaping.
Legal and financial services, such as hiring accountants, auditors, or legal counsel.
Contracts exceeding a specified dollar amount, as outlined in the corporation’s bylaws.
Exceptions Where Managers Can Act Independently
In some cases, a condominium manager may be permitted to authorize minor expenses without board approval, particularly if:
The management contract allows for discretionary spending up to a certain limit.
The expense is for day-to-day operational costs (e.g., emergency plumbing repairs).
The board has pre-approved a standing contract for routine maintenance.
Ensuring the Board is Informed About Contractor Selection and Performance
Condominium managers must provide regular updates to the board regarding:
The status of ongoing contracts and service agreements.
Performance evaluations of hired contractors.
Budget and financial impact of service provider costs.
Any disputes, complaints, or contract breaches.
To maintain transparency, all hiring decisions and contract discussions should be recorded in board meeting minutes, ensuring compliance with CPA requirements.
