How should an HOA board run a major capital project?
Board members are volunteers with fiduciary duty and no construction staff. That gap is where communities get hurt.
Run capital projects on a documented process: an independent condition assessment, a reserve-funded budget, a competitive bid with identical scope for every bidder, an owner-side representative to manage construction, and written updates to members at every milestone.
The sequence that protects the board
- Independent condition assessment before scope is written — not the contractor's free inspection
- Reserve study alignment so funding source and assessment strategy are decided up front
- One written scope issued to every bidder, so bids are actually comparable
- Legal review of the contract, including insurance, bonding, and lien protections
- Owner-side representation during construction and documented member communication throughout
Where boards get into trouble
- Accepting the lowest number without confirming the scope matches
- Letting one board member manage the contractor informally
- Approving change orders by email without recorded votes
- Skipping special assessment communication until after the contract is signed
Coastal specifics
In the Lowcountry, envelope, roofing, and dock projects carry wind, flood, and coastal permitting requirements that change both cost and schedule. Confirm insurance carrier requirements early — the carrier's specification, not the contractor's proposal, often dictates the assembly you must build.
Common questions
- Can we hire a consultant with reserve funds?
- In most cases owner-side project management for a reserve-funded project is a legitimate project cost, but the answer depends on your governing documents and state law. Confirm with association counsel before budgeting it.
Start with a conversation.
Tell us where the project stands. We'll respond within one business day — with next steps, or a candid reason it isn't the right fit.
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