Common.Elements
Guide

The vendor vetting checklist boards actually need

Most board-vendor disasters trace back to four things that should've been checked in week one. Here's the short list — license, insurance, references, and scope clarity — and how to verify each in under an hour.

Harry Schoeller· Director of Client ServicesApril 18, 20264 min read

Most of the vendor disasters I've seen in twelve years of property management traced back to one of four failures, all of which a board could have caught in the first hour of vendor selection. Here's the checklist, in the order I run it.

1. License

The license matters for the trade and the geography. A roofer needs a Florida certified roofing contractor (CCC) license; a plumber needs a CFC. General handyman work has thresholds — under $2,500 doesn't require licensure in most counties, but anything structural or trade-specific does.

How to verify (5 min): Florida Department of Business and Professional Regulation runs a public license lookup at myfloridalicense.com. Enter the company name; the result tells you license type, status, expiration, and the qualifier (the licensed individual whose license the company operates under).

Red flags:

  • License status not "Current/Active"
  • The qualifier listed isn't anyone in the company you're talking to
  • The license type doesn't cover the work you're contracting for

2. Insurance

Three coverages matter for the work most associations contract: general liability ($1M minimum, $2M aggregate is the modern standard), workers' comp (legally required for most trades in Florida), and a Certificate of Insurance (COI) with your association named as an additional insured.

The "additional insured" detail is the one boards skip. Without it, a contractor's GL policy doesn't extend coverage to your association if there's a claim against you. With it, the contractor's carrier defends and indemnifies you on covered claims.

How to verify (10 min): Request the COI directly from the contractor's insurance agency, not from the contractor. Verify it shows your association as additional insured and that the limits and effective dates are current.

Red flags:

  • COI from the contractor instead of from their agency
  • "Additional insured" line missing or shows a different entity
  • Effective dates expiring within 30 days
  • Workers' comp showing as "exempt" when the work involves on-site labor

3. References

Three references on three jobs of similar size. Not testimonials; actual phone calls.

The four questions to ask each reference:

  • Were the original timeline and budget kept? If not, what changed?
  • Did anything during the project surprise you?
  • How were change orders communicated?
  • Would you hire them again — and is there anything you'd negotiate differently?

The phrase "anything you'd negotiate differently" is the unlock. People won't volunteer that the contractor was great BUT — but they'll answer that question honestly.

Red flags:

  • References can't be reached or never call back
  • Every reference works for the same management company (suggests captive client base, not market-tested)
  • References describe scope creep, surprise charges, or the project running 2x the timeline

4. Scope clarity in the proposal

The single most expensive mistake in vendor selection is awarding a job on a scope that's not actually defined. "Replace roof — $187,500" tells you nothing about what's included. Underlayment? Drip edge? Disposal? Permits? Warranty?

A real proposal specifies:

  • Exact materials (manufacturer, product line, color/spec)
  • Exact quantities (square footage, count, linear feet)
  • What's included in the price (permits, disposal, equipment, cleanup)
  • What's not included (anything found behind the existing roof, structural repairs, code upgrades)
  • Change order process (how surprises are priced and approved)
  • Payment schedule (deposit, milestones, final retainage)
  • Warranty (manufacturer's, contractor's labor, length)

If the proposal doesn't specify all of those, the gap is where every change order will come from. Push back before you sign.

Red flags:

  • Round-number lump sum with no itemization
  • Materials specified as "or equivalent" without naming brand
  • Change orders priced "T&M" (time and materials) without rate caps
  • Warranty mentioned but not in writing

How to do this faster

Common Elements built the Vendor Directory so the license + insurance + reference layer is already a matter of record by the time you're considering a vendor. Verified vendors have their license and insurance on file with the platform. The forum's Vendor Talk room is where boards and vendors talk about scope norms.

The checklist still applies. The directory just shortens the time you spend chasing paperwork.

Florida-specific. License types, COI requirements, and worker's comp rules vary by state.