From the President
Board of Directors
By Michael Klemm | CAI-MN President
Contracts In July 2014, the Minnesota Twins will host the Major League Baseball All-Star Game. We picture Target Field, the players and the fans, but behind the scenes, professional baseball is built on a framework of contracts for goods and services. For example, the MLB website displays the 2012-2016 Basic Agreement between the Major League Clubs and the Major League Baseball Players Association regarding scheduling, salaries, expenses, revenue sharing, spring training, postseason, safety, grievances, discipline, assignment of player contracts and termination. Similarly, when we consider common interest communities, we think of tidy homes and manicured lawns, but the maintenance and operation of common interest communities depends on contracts. This article highlights some common issues in contracts for goods or services.
Parties The parties to the contract should be identified by legal name, home state and type of entity (for example, The Acme Corporation, a Minnesota corporation). Most businesses that operate in Minnesota are required to register with the Minnesota Secretary of State, and information about them is available on the Minnesota Secretary of State website at http:// mblsportal.sos.state.mn.us.
President Michael Klemm, Esq. Phone 952.953.8832 klemmm@dmshb.com
Purpose The contract should include a detailed description of the goods or services to be provided, to ensure that the parties have the same thing in mind, and to provide a basis for enforcement of the agreement.
Vice President Gene Sullivan Phone 952.922.2500 gene@ncmgi.com Treasurer Halo Stafford, CMCA, AMS, PCAM Phone 952.944.2237 edenplacemgr@pinnaclefamily.com
Time for Performance The contract should describe the time for delivery of the goods or services. The association may wish to specify that “time is of the essence.” The vendor may wish to include a “force majeure” provision that excuses delay caused by circumstances outside its control.
Secretary Nancy Polomis, Esq. Phone 952.941.4005 npolomis@hjlawfirm.com Directors Tom Engblom, AMS, ARM, CMCA, CPM, PCAM Phone 866.800.4656 tengblom@cabanc.com
Price The contract should state the price for the goods or services. The contract should identify any equipment or materials that the association must provide, and any expenses that will be passed on to the association.
Steve Hoogenakker Phone 763.213.2410 steve@landscape.pro Joseph Fadell Phone 952.392.9208 fadell.joseph@gmail.com
Billing and Payment Terms The contract should establish a process for billing and payment. The association may wish to require detailed invoices. Any late payment fees or interest charges must be described in the contract.
Russ Lis, CMCA, AMS Phone 612.805.6111 rlis@reconstructionsolutionsgroup.com Jim Rezek Phone 763-424-9984 jimrezek@comcast.net
Insurance and Indemnification
Michelle Stephans, RS Phone 763.754.5500 michelle@reserveadvisors.com
The contract should specify the types and amounts of insurance that are required. Many contracts include indemnification provisions regarding personal injury or property damage caused by negligence.
Term
Warranties
The dates that the contract will start and end should be listed in the contract.
Many contracts provide warranties for goods or services. Minnesota Statutes may establish
Crystal Pingel, CMCA, AMS, PCAM Phone 612.381.8626 crystalp@citiesmanagement.com Joel Starks, CMCA Phone 952.698.2053 joel@sharpermanagement.com
Contracts continued on page 24
Committee Chairs CAVL
Lynn Boergerhoff Phone 651.308.1461 lynnab7@gmail.com
Communications Chair Janice Pyka Phone 612.801.1229 janicepyka@gmail.com
Charitable Outreach Committee Chair
Golf Tournament Chair
Membership Chair
Trade Show Committee Chair
Education Committee Chair
Legislative Action Chair
Social Committee
Vision Awards Chair
Cliff Kurth Phone 763.248.1047 cliff@aemn.co
Nigel Mendez Phone 651.287.8640 nmendez@carlsonassoc.com
Kris Birch Phone 651.481.9180 krisbirch@birchlawn.net
Greg Pettersen Phone 612.616.4817 gregp@RDAmidwest.com
Jared Lawrence Phone 763.449.9100 jlawrence@omega-mgt.com
Tracey Bernier Phone 952.277.2780 Tracey.Bernier@fsresidential.com
Jon Edin Phone 651.222.2155 jedin@mncondodefects.com
Jane Bristow, CMCA, AMS Phone 952.277.2722 jane.bristow@fsresidential.com
January | February 2014
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