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Florida guide

Your competitive bid threshold, computed from your budget

Florida's bidding duty is a percentage of your own budget, so no two associations have the same threshold. The butler computes yours and shows it in dollars.

The percentage that applies to you

Under s.720.3055 for homeowners associations, and Chapter 718 for condominiums and cooperatives:

Condominiums and cooperatives use 5% of the total annual budget, including reserves.

Homeowners' associations use 10% of the total annual budget, including reserves.

The figure moves when the budget is adopted, so the butler recomputes it on adoption rather than leaving last year's number on the screen.

What the statute exempts

Under s.720.3055 and the Chapter 718 equivalent, the following are outside the requirement:

Attorneys, accountants, architects, engineers, community association managers and landscape architects.

Employees of the association.

Where an exemption applies, the butler records which one, so the file explains itself later.

A worked figure

Palm Harbor Villas adopts a total annual budget of $504,000 including reserves. At the 10% threshold for a homeowners' association, any contract above $50,400 must go through the competitive process.

The butler puts that number on the procurement screen, applies it to every request, and posts the bids-received list where the statute requires it.

How procurement works

Authority

What the statute says

Each sentence carries the section it comes from.

Homeowners associations obtain competitive bids for contracts above 10% of the total annual budget, including reserves, and the statute names the professions it exempts. s.720.3055

Condominiums and cooperatives use a 5% threshold of the total annual budget including reserves, with at least two bids where it applies and a written contract. Chapter 718, competitive bidding provisions

The threshold is computed from your own adopted budget in the product, not entered by hand, so it cannot go stale after an adoption. Florida rules pack, procurement module

This page explains the rules in plain language and is not legal advice.

Board questions

Questions boards ask

Does the threshold include reserves?

The percentage is applied to the total annual budget including reserves, so a large reserve contribution raises the threshold.

What if only one vendor will quote?

Record the attempts. The butler keeps the invitations, the responses and the non-responses, so the file shows what was tried.

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Put your own dates in

Florida's bidding duty is a percentage of your own budget, so no two associations have the same threshold. The butler computes yours and shows it in dollars.