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Vendor Management is More Than Writing Checks
Sentry Management is aware of the dangers of hiring contractors and utilizing vendors without taking reasonable precautions to protect the homeowners association. Simply stated, vendors can trigger fines, suits, penalties and damage claims unless simple procedures are rigorously followed.
It is standard practice to require W-9’s from homeowners association vendors to prevent potential fines. Proof of insurance is also consistently enforced to protect against lawsuits. Insurance information is entered into the CommunityPro® system and the vendor is notified upon expiration. Of course, a Board of Directors may waive these insurance requirements. But the Sentry software has built-in safeguards to prevent checks from being issued without double checking for compliance.
For certain major projects in some states, “notices of commencement” are required. These notices make certain that payments to contractors are properly released. Without this detailed procedure, the association could pay twice for the work which was contracted.
Sentry safeguards from adverse vendor actions:
- Require Form W-9
- Issue Form 1099
- Obtain insurance certificate
- File notices of commencement