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Discussion Starter · #1 ·
Today I made a presentation to a condo association. 117 squares of shingles. I spent about 5 hours this morning making out presentation folders for all the attendees.

To make a long story short, I arrived introduced myself did the small talk thing for a couple minutes and went into my presentation. Everybody was thrilled at the detail of my proposal the fancy presentation folders etc... then someone set a match to gasoline (not literally).

Someone said "But how are we going to get out of the other contract?"

As it turns out one of the association members signed a contract to do the work with a company that has no license, has been in business less than one year, and is offering no warranty. There price was 3x higher than everyone elses for wood replacement. These are the facts I gathered by sitting listening to arguments bya ssociation members for the next 20 minutes.

The person who signed the contract kept trying to find out how to discredit me and my proposal. "He didn't include..." My reply: "Yes I did, line number 7 on page 2." The other board members were really upset with this woman, and were alleging she consipered with this contractor to defraud the association.

I got a call from this woman later on when I am driving to another stop asking if I included this or than and the other... All of which was included and plainly written clear as day. My estimates are very detailed leaving nothing to question and written so a non-roofer can understand.

By the time I left I was told "If we can get out of our contract, we plan to use your company." I'm not so sure I want to get involved.
 

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Not unless you clear things up.
I would make sure your thoughts are out on the table.

"gee, I would love to earn your business, but I am concerned by this....blah blah blah.."

Put the ball in their court to answer back with their opinion on the matter.
 

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Discussion Starter · #3 ·
I'm sending a letter to the two board members I met with and are on my side so to speak. I'm kinda going to sum up my feelings about the situation. I'd like to do the job but not unless I have total control.
 

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Custom Builder
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Grump I've built a lot of condos. I've delt with thier investors, banks, creditors, supliers and even thier apraisers. Try to juggle all that with the Union in the fold. They all seem to have one thing in comon.

The magic word "Kickbacks"

I'll bet the roofing contractor gave the braud some doe from the deal. It happens more than ya think. They slap a lable on it like "finders fee".

I could tell you some kickback stories that would curl your teeth.

Bob
 

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Discussion Starter · #5 ·
Yes there is no doubt in my mind this is a kick back situation. But this is not new construction. This is a re-roof. This is a self managed board of residents.

I've said many many times Chicago was built on bribes and kickbacks.
 

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Usually with the association of home owners there are one or two that sit at treasure.
They will make the financial decisions for all the assoc fees.
I knew a guy that had never carpet steam cleaned in his life. He got an annual contract for monthly carpet cleaning with retirement condo association. He inflated his bid by 10%, then payed a monthly 10% finders fee to the treasurer's wife.
He actaully was awarded this contract before he ever had a van or mounted steam unit. Now hes on the 5th annual contract for 1 phase of condos every month. (18 phases in all)
Aint that a kick in the jeans.
 

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Discussion Starter · #7 ·
Large purchases have to be voted on by the association, or at least the board members. I am a member of my board and I know that at least 3 people have to vote yes for us to spend more than $1000. I can approve minor minor stuff alone. So can the other board members... but a $50,000 job can't be approved by the board alone. We need the input of the other owners. This board I posted about happens to work very much the same.


What you described is a way of life. I have repair guys offer me kick backs from time to time when we are seeking estimates for something. I've never accepted any.
 

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Did a condo project 6 years ago. The investors where local to you grump. (no names)

Appraiser was only licensed for under 100K, nobody even checked. His figures where jacked all to hell.

First day the title co. opened the accounts the investers pulled 180K, no explanation.

Developer interbridged thousands of credits from suplier's all over the state, from fixing his swimming pool to completeing other projects.

Everybody had thier hand in the cookie jar except the contractor. (me) I had to work for my money.

Then the bank and title company start calling me, wanting to be buddies.

Man what a mess. Then the investoers sit down in my office and ask me "How do we fix this?" Without out a second to think I snapped "Try putting the stinking money back"

Bob
 

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I think you let the genie out of the bottle for them, they are convinced now that staying with their current roofer would be a mistake, so I think that if it isn't your company that gets the work it will just end up being someone else.

The good thing is you have valuable inside information now and can watch out for any red flags if things get weird.
 
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