This Bulletin concludes a series of three email communications to residents addressing recent questions presented to the Board. This bulletin provides information related to the Board’s bidding process.
Discretion, Fiduciary Duty, and Legal Requirements
In 2014, the Sawgrass Players Club Board of Directors adopted a policy for obtaining bids to promote transparency, fiscal responsibility, and sound decision-making. Over the years, this policy has been used to guide the Board, committees, and property management while allowing the Board to continue exercising appropriate discretion in fulfilling its fiduciary duties.
Board Discretion and Fiduciary Responsibility
Although a bidding process has been established, the Board retains discretion in how and when the process is applied, consistent with Florida law. Board members are required to:
- Act as good fiduciaries.
- Exercise reasonable business judgment.
- Make decisions in the best interest of the entire Association.
- Avoid or fully disclose actual or possible conflicts of interest.
The bidding process guides due diligence but does not replace the Board’s responsibility to evaluate circumstances, timing, quality, and overall value to the community.
When Bids Are Required by Law
Florida Statutes require competitive bidding for certain Association expenditures. Specifically:
- Any contract for repair, replacement, or maintenance that exceeds ten percent (10%) of the Association’s total annual budget must be competitively bid, in accordance with Section 720.3055, Florida Statutes.
- 10% of the Association’s current budget is approximately $400K.
- These statutory requirements apply regardless of internal policies and must always be followed.
Board-Adopted Bid Policy
In addition to the statutory requirements, the Board has promulgated an internal policy guiding committees to obtain bids for projects exceeding $25,000.
There are circumstances where committees may determine that without a new bidding process, previous experience, historical pricing, prior bids, or established vendor performance provide sufficient information to move forward with a vendor offering the best combination of quality, value, and reliability (provided the above-referenced statutory requirements are always complied with).
Committees or property management may also seek competitive bids for projects below the $25,000 threshold when doing so is deemed beneficial or prudent in particular circumstances.
Emergency and Time-Sensitive Situations
The bid policy and statutory requirements recognize that emergencies may require immediate action to protect life, property, or Association assets. In those cases:
- Necessary work may proceed without bidding.
- These expenditures are subsequently presented to the committee and Board for review and ratification.
In Summary
- In all circumstances, competitive bidding is statutorily required for projects over 10% of the total annual budget.
- The Board has also adopted a $25,000 internal bid threshold.
- Prior knowledge and historical pricing may, in appropriate situations, support vendor selection without a new bidding process.
- Neither the statutory requirements nor the Board’s bid policy are intended to limit the Association’s ability to obtain needed products or services in an emergency.
- All decisions are subject to the Board’s fiduciary duty.
This approach allows the Board to remain compliant with Florida law while responsibly managing Association resources with consistency, efficiency, and sound judgment.
As recently communicated, the Board will be increasing the monthly e Notices to residents and plans to send monthly summaries of their meetings. Please encourage your neighbors to sign up on the website to ensure they receive all e Notices.