Major capital projects (roof replacement, road repaving, clubhouse renovation, pool resurfacing, fence replacement) are the largest single discretionary decisions most Florida HOA boards make. A well-scoped + well-bid + well-contracted project comes in within 10% of budget. A poorly-handled one blows through reserves, generates change orders, and triggers special assessments that damage member relations for years.

This post is the CAM + board playbook.

Beat 1: project triggering + reserve alignment

Project candidates come from:

• Reserve study recommending replacement (per reserve study + funding plan playbook)
• Emergency (hurricane damage, equipment failure)
• Regulatory mandate (ADA compliance, new fire code)
• Board-initiated improvement (amenity expansion)

Each requires different approval threshold + timing discipline.

Beat 2: scope definition

Before bidding:

• Clear description of work to be done
• Exclusions (what's NOT in scope)
• Performance specifications (materials, standards, warranties)
• Schedule expectations
• Payment terms expectations
• Insurance + licensing requirements

Vague scope = vague bid = expensive change orders. Spend time here; it saves 10x on the back end.

Beat 3: declaration bid-threshold check

Per vendor contract annual-review playbook, most declarations set dollar thresholds triggering:

• Competitive bidding (e.g., 3 bids for contracts > $10k)
• Member approval (e.g., contracts > $100k or > 10% of annual budget)
• Multi-year limits (e.g., contracts > 1 year require member vote)

Confirm the declaration's specific thresholds before issuing the RFP. Skipping required member approval voids the contract.

Statutory anchor. Reserve funding and the board's authority to spend reserve balances are governed by F.S. 720.303(6). Member approval thresholds for material alterations and substantial additions to the common areas live primarily in the declaration itself; Ch. 720 does not carry a single section naming those thresholds, with F.S. 720.303(1) as the fiduciary backbone. Capital projects sitting above declaration thresholds without the required vote are challengeable under F.S. 720.303 governance-breach principles.

Beat 4: RFP distribution

Distribution options (per project size):

• Narrow (pre-vetted contractors): for smaller projects where board has existing relationships
• Mid (5-10 contractors via industry listings): typical for $50-500k projects
• Wide (public RFP + trade publications): for $500k+ projects + first-time categories

Include in the RFP:

• Scope document
• Site visit requirement + dates
• Bid submission deadline + format
• Contact for questions
• Selection criteria + weighting

Beat 5: site visit + Q&A

Mandatory site visit for major projects:

• All bidders attend on the same day
• Board or CAM walks through scope on-site
• Questions captured + distributed to all bidders
• No private side-communications with individual bidders

Fair + uniform information prevents post-award challenges from losing bidders.

Beat 6: bid evaluation rubric

Explicit scoring:

• Price (30-40%): total including any expected change orders
• Experience (20%): years in business, similar projects, FL HOA experience
• References (15%): 2-3 recent board-client references
• Insurance + bonding (10%): coverage levels, bonding capacity
• Schedule (10%): realistic completion + mobilization timing
• Communication (5%): responsiveness to RFP, proposal quality

Document the scoring for each bid. Unscored selection = no paper trail = vulnerable to post-award challenge.

Beat 7: reference checks + verification

Call 2-3 references for top-scoring bidders:

• Did the project come in on budget?
• Were change orders reasonable?
• Did they meet schedule?
• How did they handle problems?
• Would you hire them again?

Check:

• Florida contractor license (current, no discipline)
• Insurance certificates (GL + workers comp)
• Bonding capacity if project requires
• BBB or state complaint filings

Beat 8: contract negotiation

Final contract covers:

• Scope per the RFP (any deviations documented)
• Payment schedule (deposit + milestones + hold-back)
• Change order procedure (rate + approval threshold)
• Schedule with specific milestones
• Termination rights (both sides, specific conditions)
• Warranty (minimum 1 year, extended where appropriate)
• Liquidated damages for delay (if appropriate)
• Insurance + indemnification

Florida Construction Lien Law applies: file proper notices to protect the association from sub-contractor or supplier liens.

Beat 9: project management during construction

• Single board representative OR CAM as primary point of contact
• Weekly progress meetings + documentation
• Change orders in writing, approved before work begins
• Photo documentation of completed milestones
• Invoice review against contract + change orders

Payment discipline: don't pay ahead of actual work. Don't release hold-back until punch list complete.

Beat 10: project close-out

Completion:

• Punch list walk-through
• Final inspection
• Warranty documentation received
• Certificate of completion
• Final payment released (or hold-back released per contract)
• Lessons learned documented for next project

Five capital-project failure modes

Observed in HOA construction disputes:

1. Contract signed without member vote when declaration required one. Vendor partway through work; member sues; contract voidable; association exposed to vendor's partial-completion claim.
2. Change orders accumulate 40% over original. Vague scope + weak change-order discipline; actual cost 40% above bid; special assessment triggered.
3. Reference checks skipped. Low-bid contractor awarded; turns out to have pattern of abandoning projects; walks away at 60% complete; association pays another contractor to finish.
4. No lien-law notice filed. Sub-contractor files lien on common property for unpaid invoice from GC; association pays twice to clear.
5. Hold-back released too early. Punch list incomplete; GC pocket hold-back + never finishes; association sues + wins but recovery is minimal.

Bottom line

Capital projects are the highest-cost discretionary decisions an HOA board makes. A board + CAM that run procurement with discipline + documentation + construction management produce projects that come in on budget + enhance community value. A board + CAM that improvise procurement generate the cost overruns + contractor disputes that damage community finances + board reputation simultaneously.

The declaration is the procurement floor. The statute adds construction-lien + insurance requirements. The playbook is how the association stays on budget.

This post is an operational walkthrough, not legal advice. For specific capital-project contract or construction-dispute questions, consult a licensed Florida attorney familiar with construction + HOA practice.