Procurement Policies

Purchasing policies, sometimes referred to as procurement policies, provide a roadmap for purchasing items and services.

Policies include information about:

• Who is authorized to make purchases

• How much a staff member, such as a manager, can spend before seeking permission from the board

• When bids must be solicited

• What happens if the services or items cost more than expected

• Purchasing ethics

• Policies are informed by existing state or county laws, as well as the individual association.

• For example, some states may actually require associations to request bids if the total cost of the product or service is more than 5% of the total annual budget of the association. In other states, it might be a 3% threshold.

• Similarly, some HOAs might require a minimum of 3 bids, even though it is not a state law. Others may only say that multiple bids are necessary. Purchasing policies may and should be revised from time to time.