Large Spend Process

This process is required for all projects over $1000 unless written approval is received from Management. Large projects may not be broken down into sub-$1000 chunks to avoid being subject to this process.

You must work with at least one other community member to manage large projects

1. Study: 2-3 days

Three trusted vendors survey the project and give guidance. We survey past project, talk with the team leaders, review invoices, learn from mistakes. We then have a good idea of a budget range and project approach. We have an idea of the budget, which allows us to define the project scope and specs.

2. Write the specification: 5 days

1. Scope of work to be performed
2. Specific standards for the work and materials
3. Alternatives (lower cost options)
4. Clean up
5. Manufacturer's warranty
6. Installer's warranty
7. Insurance
8. Workers comp
9. Own equipment
10. Start date/completion date
11. copy of vendors contract for management review/approval
12. Disclose relationship to vendor(s), if any (friend, have we used them before, etc.)
13. Payment terms/ approval of completed job process
    • Payment terms should be informed by the vendors, but no more than 50% before completion, balance at completion (5 days), 10% holdback if punchlist (list of things that need to be corrected)
14. Proposal due date/time: submitted to the Management Committee via email at wasatchcommons@gmail.com by 5:00 pm SLC time on a management meeting day.

3. Send specs to all three vendors for feedback in writing: 2-3 days

Adjust as necessary, or review with member of management committee for solutions (when vendors can't meet requirements)

4. Prepare Request for Proposal (RFP) with management, get PO preliminary sign-off: 1 day

Send proposal to vendors via email with response due by email to the Management Committee via email at wasatchcommons@gmail.com by 5:00 pm SLC time on the specified management meeting day.

5. Attend the management meeting: 1 day

• Project manager(s) should advocate for any preferred vendor
• Get PO number
• Management will then choose a vendor for the project based on the bids, while considering project manager's opinions. In general, the lowest bid should be chosen.

6. Inform vendors of selection: 2-3 days

• Inform vendors only after terms are finalized/signed, insurance and other required documents are received
• Do not disclose the amount charged by other vendors. Get documents from selected vendor (insurance, etc.), execute contract.
• Inform all vendors if they were chosen or not by phone and email
• Vendors MAY NOT adjust pricing after bid submittal
• Bids should be sealed/not revealed to other contractors under any circumstances

8. Obtain a contract from the chosen vendor and have it signed by the President

• A contract should be obtained for any project with a large spend amount
• The contract must be signed by the President of the management committee. Only the President has the authority to sign on behalf of the association (see section 4.2 of the Bylaws)
• The President should obtain approval from the rest of the management committee before signing any contract on behalf of the association.

7. Oversee the project, approve for payment: 15 days

• Notify the community over email so everyone knows when the vendor will be on site and what work is being done.
• Supervise vendors when they are on-site

8. Debriefing:

1. How did the project go?
2. What did we learn?
3. What went well?
4. What should we do differently next time?

9. Submit to project folder online

Questions/Additions: WIP

1. How does this work for vendors that require a dispatch fee to assess the problem (plumbers, HVAC, etc)
   
   1. Use list of trusted providers. Handle exceptions on a case by case basis.
2. Where is the project folder where all project documents should be stored?
   1. In wiki in a Projects folder for the respective committee
3. What should the process be if the person who has agreed to be the project manager cannot continue working on the project?