Does Florida law require competitive bids for HOA or condo projects?

For condominiums, yes. F.S. § 718.3026 requires a condominium association to obtain competitive bids for any contract that exceeds the greater of $2,500 or 5% of the total annual budget, with limited exceptions for professional services and declared emergencies. HOAs under Chapter 720 are not subject to the same statutory threshold, but the board has a fiduciary duty to act prudently, and obtaining competitive bids is considered best practice.

How is the competitive-bid threshold calculated?

The threshold is the greater of $2,500 or 5% of the association's total annual budget, including reserves. So for a condominium with a larger budget, the 5% figure controls once it exceeds $2,500; for a smaller budget, the $2,500 floor applies. This tool computes both arms of the test and shows which one sets your threshold.

How many bids should an association get?

F.S. § 718.3026 requires a competitive bidding process but does not set a minimum number of bids. Best practice for both condominiums and HOAs is to solicit at least 3 bids for any significant project. Fewer bids mean less competitive pricing and weaker documentation of the board's fiduciary process.

What do I do after I know bidding is required?

This tool is the pre-RFP decision step. Once you know whether bids are required, build a complete Request for Proposals so every vendor bids on the same scope, or start with a clean scope of work. The RFP Builder and Scope of Work Generator on Common Elements pick up where this aid leaves off.

Tool · Florida §718.3026: Competitive Bids

Do I need to competitively bid this?

A pre-RFP decision step for Florida boards. Enter a contract amount and your annual budget to find out whether F.S. § 718.3026 requires a competitive-bid process, whether an exception applies, and what to do next. The threshold is the greater of $2,500 or 5% of the total annual budget.

Statute citations reviewed by the Common Elements editorial team, which includes a Florida-licensed community association manager (LCAM) and insurance broker, Florida Licensed Community Association Manager, 2-20 & 6-20.

Association

Association type

The statutory bid threshold is a Florida condominium rule (F.S. § 718.3026). HOAs under Chapter 720 are not bound by it, but the board’s fiduciary duty makes competitive bids best practice.

Contract and budget

Contract amount ($) *

Total annual budget ($), including reserves *

Exceptions

The competitive-bid requirement does not apply, even above the threshold, in these cases.

Professional services: Contracts for services provided by attorneys, accountants, architects, community association managers, engineers, and landscape architects are exempt from the competitive-bid requirement.Declared emergency: Contracts entered into to address an emergency that threatens an imminent danger to the health, safety, or welfare of the community are exempt from the competitive-bid requirement.

Enter a contract amount and total annual budget to check the requirement.

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Florida competitive-bid FAQ

Does Florida law require competitive bids for HOA or condo projects?: For condominiums, yes. F.S. § 718.3026 requires a condominium association to obtain competitive bids for any contract that exceeds the greater of $2,500 or 5% of the total annual budget, with limited exceptions for professional services and declared emergencies. HOAs under Chapter 720 are not subject to the same statutory threshold, but the board has a fiduciary duty to act prudently, and obtaining competitive bids is considered best practice.
How is the competitive-bid threshold calculated?: The threshold is the greater of $2,500 or 5% of the association's total annual budget, including reserves. So for a condominium with a larger budget, the 5% figure controls once it exceeds $2,500; for a smaller budget, the $2,500 floor applies. This tool computes both arms of the test and shows which one sets your threshold.
What contracts are exempt from the competitive-bid requirement?: F.S. § 718.3026 exempts contracts for professional services (such as those provided by attorneys, accountants, architects, community association managers, engineers, and landscape architects) and contracts entered into to address an emergency that threatens imminent danger to the health, safety, or welfare of the community. Even where an exception applies, documenting the basis and gathering a comparison quote protects the board's fiduciary record.
How many bids should an association get?: F.S. § 718.3026 requires a competitive bidding process but does not set a minimum number of bids. Best practice for both condominiums and HOAs is to solicit at least 3 bids for any significant project. Fewer bids mean less competitive pricing and weaker documentation of the board's fiduciary process.
What do I do after I know bidding is required?: This tool is the pre-RFP decision step. Once you know whether bids are required, build a complete Request for Proposals so every vendor bids on the same scope, or start with a clean scope of work. The RFP Builder and Scope of Work Generator on Common Elements pick up where this aid leaves off.