More on Contracts and Executive Session
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We recently received a question regarding a community association board’s consideration of contracts in executive session. A contractor's bid can come in many forms, e.g. a formal written contract, a written proposal, or even an oral statement. Regardless of the form, a contractor's "bid" is ordinarily the contractor's "offer" to perform a designated scope of work for a specified price. An enforceable contract is formed when an offer is accepted. The manner in which the offer is accepted will vary and may depend on the form of the contractor's bid or the level of formality required in light of the nature or scope of the work to be performed.
When a property owners’ association or condominium association requires the services of a contractor, bids will typically be solicited by its board of directors from several contractors. The purpose of soliciting bids is to obtain "offers" to perform the required services - which offers, if accepted by the board, will form a contract between the association and the contractor. The Condominium Act, at Virginia Code Sec. 55-79.75, and the Property Owners’ Association Act, at Virginia Code Sec. 55-510.1, each provide that the respective association's board may convene in executive session to "discuss and consider contracts." It is therefore appropriate for an association's board to convene in executive session to discuss the terms of various bids received by contractors, in the course of considering whether to enter into a contract with any of the bidding contractors on the terms proposed in their bids.
