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Why Boards Should Never Sign a Bid Without a Defined Scope

Most HOA projects don’t fail because contractors are careless or boards are inattentive.

They fail because the scope was never truly defined before the bid was signed.

A bid without a clear scope isn’t a price — it’s a placeholder. And once work begins, that placeholder almost always turns into delays, change orders, and frustration for everyone involved.

For HOA boards managing aging communities and high-stakes capital work, signing a bid without a defined scope is one of the most expensive mistakes you can make.

A bid is not a scope (and never has been)

It’s a common misconception:

In reality, bids are written based on assumptions. When scope is vague, contractors are forced to interpret:

• What conditions are included vs excluded
• How extensive repairs actually are
• What access, staging, or phasing is expected
• What level of finish or restoration is required

Those interpretations vary — widely.

That’s why boards often receive bids that look impossible to compare and why the “winning” bid rarely reflects the final cost.

What happens when scope isn’t locked in first

When boards sign a bid without a defined scope, several predictable problems follow:

1. Change orders become inevitable

If the scope didn’t clearly define what was and wasn’t included, contractors will surface gaps once work starts. Those gaps don’t mean anyone acted in bad faith — they mean decisions were deferred instead of made upfront.

2. Bids become apples-to-oranges

Two contractors can both be “right” while pricing entirely different work. One may assume limited repairs. Another may assume full replacement. Without a shared scope, price comparisons are meaningless.

3. Boards lose decision control

When scope isn’t defined by the board, it gets defined in the field — often by whoever discovers the issue first. That shifts decision-making away from the boardroom and into reactive conversations under time pressure.

4. Timelines slip before anyone notices

Undefined scope almost always hides sequencing issues. Once permits, engineering updates, or added work enter the picture, schedules expand — sometimes past the season when work can even be performed.

What “defined scope” actually means

A defined scope is not a long document filled with technical jargon.

It’s a decision framework that answers the questions contractors need before pricing:

• What conditions are included based on current observations
• What assumptions are being made — and which are explicitly excluded
• What access constraints exist
• How work should be phased or sequenced
• What restoration standards apply
• What alternates (if any) should be priced separately

Most importantly, it reflects today’s conditions, not last year’s reserve assumptions.

Why boards often skip this step

Boards don’t skip scope definition because they don’t care. They skip it because:

• They want numbers to move planning forward
• They assume contractors will “figure it out”
• They’re under pressure to meet meeting deadlines
• They believe refining scope can happen later

Unfortunately, later is when changes get expensive.

By the time bids are signed, flexibility disappears. Once contracts are executed and work is underway, every scope clarification becomes a negotiation.

The hidden cost of “just getting bids”

Many boards believe getting bids early saves time.

In practice, it often does the opposite.

Projects issued to bid without defined scope frequently experience:

• Re-bidding once assumptions are challenged
• Engineering revisions mid-stream
• Missed construction windows
• Budget increases without any change in end result

The irony is that boards do more work — and spend more money — trying to correct issues that proper scope definition would have prevented.

How strong boards approach bids differently

Boards that consistently deliver smoother projects do one thing differently:

They separate decisions from pricing.

Before issuing an RFP or signing a bid, they ensure:

• The problem is clearly understood
• The scope reflects current conditions
• Key decisions are documented in minutes
• Contractors are pricing the same work

Only then does price become meaningful.

When outside guidance makes the biggest difference

This is where experienced construction advisory support adds real value — not by replacing engineers or contractors, but by helping boards:

• Translate technical findings into board-safe decisions
• Stress-test scope before bids go out
• Identify hidden assumptions that create risk
• Ensure bids are defensible and comparable

The goal isn’t perfection. It’s clarity before commitment.

The bottom line

A bid without a defined scope is not a shortcut. It’s a gamble.

Boards don’t need more bids — they need better decisions upstream.

When scope is clear, bids stabilize. Timelines hold. Budgets stay predictable. And boards retain control over outcomes instead of reacting to surprises.

If your board is preparing to issue an RFP or sign a bid, the most important question isn’t “Which contractor is cheapest?”

It’s “Have we clearly defined what we’re actually asking them to build?”

Want a second set of eyes before you sign?

Define scope clearly before bids go out… so pricing reflects reality, not assumptions.

Reeves Construction Advisors helps HOA boards lock scope early, clarify responsibilities, and structure RFPs so projects start on solid ground.

SCHEDULE A CALL WITH PAUL

If the stakes are high and the details matter, you gotta call Paul.