A Guide to Vendor Contracts: Best Practices for HOAs and Property Managers

By: Burt R. Willie - Smith | Knowles

Vendor contracts are essential in managing and operating homeowner associations (HOAs). They help ensure smooth operations for services like landscaping, snow removal, maintenance, insurance, accounting, legal services, and other necessary operations. However, poorly drafted contracts (or no written contract at all) can lead to costly disputes and inefficiencies. Here’s a guide to forming, managing, and enforcing vendor contracts effectively.
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What Is a Contract?
At its core, a contract is an agreement or a "meeting of the minds" between two parties. It consists of three key elements:

• Offer – A proposal to provide goods or services.
• Acceptance – Agreement to the terms of the offer.
• Consideration – The value exchanged by both parties.

​Does a Contract Have to Be in Writing?
While verbal agreements are enforceable in some cases, certain contracts must be in writing under Idaho law. However, it is always recommended to reduce agreements to writing.

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