Henry Goodman – Potential Dangers for Condo Boards Hiring Contractors

Common interest communities, such as condominiums, must be careful about certain dangers when hiring contractors to work in their communities:

  1. Hiring members of the association to do work in order to save money is generally not a good idea. If a court makes a decision that the individual is an employee, even though the association considered him/her to be an independent contractor, and if that person gets injured on the job, and if the association has no worker’s comp insurance, there is no defense to a claim for injury. The sole question will be how much you have to pay.
  2. If you do not conduct a proper background check in advance, and the employee or contractor you hire (or his/her own employees) have criminal records or are sex offenders, the association may be held liable for its losses, as well as for any injury caused by negligence in bringing such a person into the community. Relying on recommendations is not enough. Due your due diligence.
  3. Hiring the lowest bidder does not necessarily guarantee the best for the community. The standard that is best is hiring the lowest responsible, qualified bidder. This means someone with good credentials and a history of quality work. This advice applies not only to hiring individuals, but also to hiring companies such as contractors, engineers, accountants, and attorneys.

About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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