In sequential order, here are the steps that should be followed while conducting a search:

1. Create a search committee. Committee members should consist of individuals who are already familiar with the Association. If you have members with particular expertise in any given area (such as finance, law, construction, maintenance, etc.), make use of those individuals on this committee. Don’t let them fall into the trap of getting bogged down with minutia. Committee members need to be “big picture” thinkers. Some board members should be included on the search committee, both to act as a liaison between the committee and the Board, as well as to make sure that the process is being conducted in the manner set forth by the Board.
2. Develop bidding specifications. You need to consider what your budget is for management services, as well as what level of service you require and what services the management company will be required to supply. As an example, some associations outsource administrative services, such as financial services like assessment collections, while retaining all other management functions within the Board. Other associations require full-service management, with the Board adopting a more passive role.
3. Develop a request for proposal based upon your bidding specifications. Do not be afraid to ask some potential bidders what they believe the most important criteria might be, so you can include those in the bid specifications. Make sure that all bidders receive the same information so that you receive a fair comparison. It is important that the Association control the request for proposal process. If you allow the management companies to control the process, you will not be able to compare bids received, as each management company will emphasize those matters they deem to be important rather than responding to your specific criteria.
4. Prepare evaluation criteria. It is important that this be an unbiased evaluation. Some associations adopt the position of separating the evaluation process by breaking down proposals into two components: the services component and a fee proposal. The services proposals are then evaluated without knowledge of what the related fee proposal might be, and potential finalists are selected based on services alone. Only then are fee proposals evaluated to determine the overall service. You might also assign a point system, wherein points are awarded based upon how the bidders respond to each of the criteria you have set out. An example is that the fee may only represent 25% of the entire points.
5. Narrow the field. - Based upon the evaluation process above, determine the leading candidates.
6. Conduct interviews. Leading candidates should be invited to an interview by the search committee. It is from this process that the final approved bidder is determined. Even after you have approved and evaluated all of the criteria above, it is very important to be able to establish a good working relationship with the management company. Questions that you should ask the management company are:

• How long has the company been in business?
• How many associations does the company manage?
• Does the company manage similar properties?
• How does the company handle emergency response situations?
• What level of interaction does the manager have with the Board of Directors?
• Does the management company use segregated bank accounts for each Association?
• What is included in the fee structure?
• Is the company a member of CAI?
• Does the management company have financial controls in place to protect Association funds?
• Is the management company bonded?

1. Review the contract - Meet with the Association's attorney to review the management company’s proposed contract. . Offer guidance in making sure that the contract is in accordance with the specifications set forth by the Board and search committee. A little money spent here can save lots of money later.
2. Monitor performance. - Establish a means of monitoring the management company’s performance going forward.

The above are general guidelines only. There are likely a number of additional matters that could easily be considered in this process. The purpose of this article is simply to get an Association started in the selection of the management company.