A Simple Solution to the Condo Service Industry’s Problem
One of the biggest problems in Ontario’s condo management industry is favoritism in contractor selection. In most cases, the pre-selection process is controlled by condo managers who may have conflicts of interest, as many condo management companies own their own condo service companies. This places condo managers in a difficult position, torn between their company’s interests and those of condo owners.
As a result, condo owners’ interests are often diminished, leading to subpar service quality and higher costs.
Many condo service contractors are unable to access information about condo needs and therefore cannot offer their services.
“Condo Business Intelligence” (CondoBI) has embarked on a mission to create a Pool of United Vetted Condo Service Providers to mitigate favoritism in the condominium industry and stimulate fair competition. Favoritism often arises when a property manager or board member introduces and supports a condo contractor with undisclosed ties for a contract or project. This leads to biased decisions and undermines fair competition, as many highly qualified condo service providers, eager to prove their excellence and offer better services at competitive prices, do not get the opportunity to learn about condo needs or offer their services.
What have been done previously
CondoBI Canada has created a Pool of Condo Service Providers to offer Condo Directors:
- A Price Comparison Tool:
- Objective: Allow Condo Directors to compare prices and relate those prices to the parameters of buildings and their amenities.
- Method: Condo owners and directors submitted their list of contractors along with prices through our analytical tool, which allowed them to compare their condo service prices against other condo buildings. To ensure an unbiased initial comparison, the names of the service providers were not disclosed.
- Deficiency: The tool lacked information about the quality of the job.
2. Feedback Request Tool:
- Objective: Enable condo directors to request feedback from other condo directors who have dealt with those condo contractors to compare the quality of their work.
- Method: Condo directors could click the “Request a Feedback” button, prompting us to reach out to the appropriate condo director and send feedback.
- Deficiency: The time between the request for feedback and the receipt of the feedback was not immediate.
3. RFQ & Tender Invitation Tool:
Objective: Enable condo directors to request quotes from their chosen condo contractors and invite them to a tender.
Method: Condo directors can click the “Get in Touch” button, prompting them to reach out to the appropriate condo contractor to invite them to a tender or request a quote.
Deficiency: Condo directors had to check external resources before contacting condo service providers.
Challenges Identified:
The absence of immediate information about job quality decreased the interest of Condo Directors in comparing prices and quality. This allowed condo managers ample opportunities to present their favored contractors’ information to directors, influencing their decision-making and often excluding independent contractors. Considering that many condo management companies have their own affiliated service providers and long-term partners. While independent contractors are occasionally invited, it is frequently done merely for statistical purposes.
So, independent contractors rarely had a chance to be heard or
seriously considered.
CondoBI’s Next Step to Improve the Solution
To address these issues, CondoBI, an independent party with no conflicts of interest, began verifying service providers’ prices and reputations using feedback from Condo Directors who have worked with particular contractors. By collecting information based on the same criteria and verifying price and quality, we are creating a
United Pool of Verified Condo Service Providers
These service providers will be evaluated back-to-back with management companies’ preferred contractors based on the same criteria—quality and price of services—rather than on human factors and personal relationships. This will give them more opportunities to be invited for tenders and receive RFQs.
If you have any questions please call us 647-977-1440 or support@condo-fairtender.ca
Thank you!
Let’s work together to transform the condo industry, ensuring fair competition, transparency, and high-quality service for all condo owners. Join CondoBI in creating a better future for the condominium sector!