ADVICE.

When managing a major roofing or exterior project, contract negotiation can be one of the most challenging responsibilities for a Licensed Community Association Manager (LCAM) or Property Manager. To help simplify this process, Phoenix Roofing Services developed a Contract Negotiation Guide that was presented as a CEU-accredited educational session for LCAMs.

Below is a quick overview of the most important points covered in the guide — the “cliff notes” version — to help you navigate your next project with confidence.

1. Define the Scope of Work Clearly

Insist on a well-defined installation process, materials list, and performance standards. Ask contractors what items are not included in their proposal and request a price list for common potential change orders (like wood replacement or flashing upgrades) before signing. This ensures you’re comparing apples to apples when reviewing bids. 

2. Understand Contract Amounts and Payment Terms

Set clear payment milestones and know how deposits are handled. Be cautious of contractors using funds from one project to pay for another. Ideally, contracts should include a reasonable deposit (20–40%) with progress payments tied to measurable milestones.

3. Confirm Insurance and Licensing

Always request a current Certificate of Insurance (COI) for general liability, workers comp, auto and umbrella coverage. Verify coverage by calling the carrier listed. Make sure your association is added as “Additional Insured” and that the contractor’s policy covers your specific type of project — especially important for multifamily or torch-applied systems. Many general liability insurance policies have exclusions for very common roofing practices such as roofing over 2 stories, using a torch on the roof, or even exclude flooding damage due to open roofs during a storm.

Further, request a list of the primary subcontractors being used and a copy of insurance records as well. Most large projects will have sub contracted labor of some sort, material delivery, dumpsters, and heavy equipment — all of which present there own risk for property damage or personal injury.

4. Plan for Delays and Termination

Establish a realistic schedule and discuss contingency plans for unavoidable delays such as afternoon thunderstorms or hurricanes which are very common in Central Florida. Hard deadlines can be risky, but excessive delays or vague timelines are red flags. Clarify termination terms upfront to prevent disputes later .

5. Know Your Warranty

Understand the difference between manufacturer, workmanship and no-dollar limit (“NDL”) warranties. Many “lifetime” or “50-year” warranties don’t apply to multi-family properties or in Florida at all. Most manufacturer warranties include lots of terms and that are incredibly limiting in nature and even when warranty claims are made, the pay out is often just for material which is a fraction of the cost of the needed repair. The warranty that truly matters is the workmanship warranty — the one held by the contractor. Contractors with in-house service teams (like Phoenix Roofing Services) and brick-and-mortar locations are best positioned to respond quickly and honor these warranties.

6. Document Everything

Take time-stamped photos of your property before work begins — roofs, landscaping, sidewalks, and building exteriors. Keep detailed records of communications, meeting notes, and approved change orders. Proper documentation helps protect your association from future disputes and will build the foundation for any claims needed to be made against general liability policies if needed.

7. Use Third-Party Oversight When Needed

For complex or large-scale projects, consider hiring an independent project manager or engineer contracted by the community. This ensures unbiased oversight and accountability throughout the process.

Work Smarter, Not Harder

The Contract Negotiation Guide is designed to help community managers manage risk, improve transparency, and ensure fair outcomes for the communities they serve.

To receive the full guide or schedule a presentation for your management team, contact Phoenix Roofing Services. We’re happy to share our expertise, assist with contract reviews, and help you plan your next project with confidence.