Guides
What should a property management repair vendor prove first?
Property management repair vendor checklist: what a vendor proves before the first job, what the panel agreement says, and the scorecard that keeps him on it.
What to take away
- A vendor is on the panel or not. There is no "we use him sometimes." A vendor without a complete file is a vendor the company cannot defend if the work fails or the technician is hurt.
- The file has three partswhat the vendor proves before the first job, what the vendor agrees to in writing, and what the company records about every job afterward.
- The scorecard is what keeps the panel honest. Response, first-time fix, invoice accuracy, and tenant conduct are scored on every job, and a vendor who slips is told, then replaced.
- No rate or fee is stated here. The schedule of rates is the vendor's proposal against the company's volume, and it belongs in the agreement, not in an article.
Before the first job
- Trade license verified directly with the state or local contractor licensing board, not from a photocopy, with the license number, expiration date, and verification date recorded. The licensing and compliance guide explains which trades the board covers locally.
- Certificate of general liability insurance received from the vendor's insurer, naming the company and, where the management agreement requires it, the owner as additional insured, with the expiration date in the calendar.
- Workers' compensation certificate, or the written exemption the state allows for a sole operator, confirmed with the state's requirements.
- Auto insurance certificate where the vendor drives to the company's buildings.
- Tax identification form completed so that year-end reporting is possible; the company's accountant confirms which form applies.
- Written confirmation of the vendor's safety practice for the tasks he will do. For anything involving equipment that can energize, OSHA's control of hazardous energy standard is the reference, and the vendor should be able to describe his lockout practice without prompting.
- Two references from other management companies or owners, called, with notes.
- Background check policy agreed for any vendor staff who will enter occupied units, consistent with what the company's own hiring standard requires of its employees.
The panel agreement
- Schedule of rateshourly, call-out, after-hours, and any flat rates for common tasks, with the date the schedule expires.
- Response commitment by classwhat the vendor promises for emergency, urgent, and routine work, in the same classes the company uses in its maintenance system.
- Authorization limitthe amount above which the vendor must stop and get written approval before proceeding.
- Entry conductidentification, notice, tenant interaction, photographs before and after, and no side arrangements with tenants or owners.
- Invoicing terms: work order number on every invoice, parts itemized, labor hours stated, photographs attached, and the period within which invoices are submitted.
- Warranty on workmanship, stated in months, and the process for a return visit at no charge within it.
- Terminationeither side, on notice, with open work orders completed or handed over.
- Confidentialitytenant and owner details go nowhere.
After every job
- Work order closed with the vendor's invoice, photographs, and the tenant's confirmation attached.
- Invoice checked against the schedule of rates and the authorization limit before payment.
- Scorecard updated. The IRS guidance on what records a business should keep is the retention floor for the invoice; the scorecard is the company's own record and is kept as long as the vendor is on the panel.
The scorecard
| Measure | How it is scored | What a poor score means |
|---|---|---|
| Response | On time against the class commitment, or not | The vendor is on the panel for a class he cannot serve |
| First-time fix | Closed without a return visit within thirty days, or not | Diagnosis, parts, or skill problem; ask which |
| Invoice accuracy | Matches the schedule and the authorization, or not | Either the schedule is unclear or the vendor is testing it |
| Tenant conduct | No complaint, or a complaint recorded | The vendor is representing the company badly in the tenant's home |
| Safety | Control followed on energized equipment, or not | Remove from the panel; do not wait for the second time |
Score every job. Review the panel quarterly. A vendor who fails a measure twice in a quarter gets a conversation with the record in front of him; a vendor who fails safety once does not.
Vendor Scorecard Measures
Measure
- Response
- On time vs commitment
- First-time fix
- No return visit in 30 days
- Invoice accuracy
- Matches schedule and limit
- Tenant conduct
- No complaint recorded
- Safety
- Control followed
Scoring
- Response
- Cannot serve class
- First-time fix
- Diagnosis or skill issue
- Invoice accuracy
- Schedule unclear or testing
- Tenant conduct
- Represents company badly
- Safety
- Remove from panel
Poor Score Meaning
- Response
- First-time fix
- Invoice accuracy
- Tenant conduct
- Safety
Building the panel for the territory
The panel follows the map. Vendors based inside the territory the company serves can meet the emergency commitment. Vendors an hour away cannot, whatever they promise.
The building's maintenance plan sets the trades. Minimum coverage: plumbing, electrical, HVAC, appliance, and locksmith, plus general repair. Roofing and pest control stay on call. Two vendors per trade means one is available when the other is not.
The company's own safety program governs the vendor on site as well. OSHA's safety and health program guidance expects the host employer to know what hazards a contractor is exposed to in its buildings, and to tell him.
Common questions
Can a vendor start work while his insurance certificate is pending?
He can start when the certificate is in the file, and not before. A job done the day before the certificate arrives is a job with no coverage if something goes wrong.
What if the only vendor for a trade in the territory will not sign the agreement?
Then the company has a supply problem, not a paperwork problem. Look further afield for a second vendor, and consider whether an in-house technician can be trained and licensed for the trade.
Is a handyman without a license acceptable for small jobs?
The contractor licensing board decides what a license covers and what does not need one. Ask the board for the local threshold, and record the answer in the file. Unlicensed work on licensed tasks is the company's liability.
Are typical vendor rates stated here?
No. Rates depend on the trade, the territory, and the volume the company can offer. The schedule in the agreement is the only figure that applies.
