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Is It Acceptable For The Board To Be In Charge Of Construction Projects?
Posted on April 8, 2019 8:00 AM by HOA Sites
Categories: HOA Website
Does your HOA board take charge of all the community’s construction projects?  Do you think they fail to provide you with key information on the progress of the projects?  You might be wondering whether or not the board is allowed to manage these projects.

The board has supreme authority when it comes to running the community and it has a legal right to run any of its projects.  The homeowner association website can be used to keep members up-to-date on the status of the projects and avoid the issues discussed below.
 
Conflict Of Interest

If a board member’s managerial choices are based on their personal interests instead of those concerning the community, a conflict of interest arises.  For instance, a board member might use their legal power to show favoritism when awarding contracts.  This equates to a breach of their fiduciary duty and it could lead to a voiding of contracts in the end, which in turn causes projects to stall.
 
Lack Of Professionalism

Board members are homeowners that are voted into their positions to oversee the development of the community.  Often, they lack the specific know-how regarding project management and accounting.  As a result, success becomes more difficult to achieve when the association is left to run without the help of an HOA manager.
 
Communication Failure

Aside from running the homeowners association, board members typically have other personal jobs.  As such, they’re extremely busy and it’s only natural that they’ll forget to post project updates on the homeowner association website or communicate thoroughly with homeowners.

So, the board has a legal right to run its construction projects.  That being said, it needs to avoid the conflict of interest, a lack of professionalism, and any communication failure.  Unfortunately, it’s impractical for most boards to overcome all these problems, and they usually turn to an HOA manager to take charge of their projects.
9761 Crosspoint Blvd
 Suite 400
 Indianapolis, IN 46256
Phone: 317.608.6533