It’s been a long time since we put out an episode of The Property Management Show and today we’re excited to talk with RoDevia Brigham, the founder and CEO of Proposabid. The vendor bidding process is an entire industry on its own, and this is a topic we have not covered before on the podcast. Introducing RoDevia and Proposabid Proposabid does bids and estimations for properties and repairs across US. Their niche client base is property management companies, real estate investors, and mom-and-pop investors. They work with people who do not know how to go about sourcing bids for work. The idea for this company came from a shower moment. RoDevia’s background is in computer science and IT, specifically cyber security. She has an approach to her work that follows an “if this, then that” process. She’s always thinking about how to automate things. While in the shower, she asked her partner an important question: What could she automate if she could automate anything in her day as a property manager? The answer was: bidding. She said if she could just get good bids that reflected apples for apples, and those bids came in on time, and vendors would pick up the phone and submit things relevant to the work that needs to be done, then she could submit those to her property owners who could make financially responsible decisions. That, she said, would be great. RoDevia took all of that seriously, knowing it was an everyday problem for her partner’s clients. Four years later, Proposabid is doing the work that needs to be done. Property Management’s Vendor Bidding Problem The vendor bidding process in property management is essentially broken RoDevia believes. While it seems like most property managers know their vendors and have good relationships in place, why would bidding be necessary at all? RoDevia and her company focus on projects that need three bids, minimum. The process at a high level looks like this: A property manager has to contact the three companiesThree different prices are submittedProposals have to be gatheredThe lowest bidder is selected But in that process, there are some key items that a property management company’s staff might not be familiar with or cannot do. The phone calls and the emails go back and forth. Then, there’s the hurry up and wait while those bids come in. This can be immediate, but usually it takes a couple of weeks. Sometimes, you won’t get the bids in at all. When those do bids come in, you have to compare them: Are they apples for apples?Do they come with the right warranty?Are they offering considerations or concessions?Is scope of work correct for the price?Are the vendors even qualified?Are they in a database for licensing and insurance? Then, you may need to make corrections to the bid, and that could include going back to the phone calls and the emails. Bids are re-submitted and reconsidered. Once you have something everyone agrees on, a property manager will go ahead and submit those bids to your property owner or the landlord, and together you might decide on the vendor. That process alone can take a couple of weeks or months or in some cases, it may not even get done. Someone has to be responsible for this process. It could be a director or an asset manager or an office manager. Maybe you have in-house maintenance folks who are taking all of these bids and working on the information. This can add up to 10 hours a week, which might cost 400 to 520 hours per year. All of that labor comes with no guarantee that those bids are even getting done, and those are hours that can be utilized elsewhere in your business. Financially, the costs of a broken bidding process can be $30,000 to $40,000 lost purely on bid management. When you’re considering the roofers, the asphalt, the mold remediation, building codes, and things like that, you have to consider how the vendor bidding process looks across multiple owners. Property management staff is busy collecting rent and going to court and dealing with residents. They may not have the time to deal with this process across all the properties you manage. Standardization is necessary but not always present when it comes to RFPs and bidding. If you don’t have a consistent and standard Request for Proposal (RFP), how do you attract the right vendors? You need to understand project requirements and have direct comparables, otherwise staff will have trouble closing on those bids. There’s also the problem of limited reach. Vendors may not be responding to calls or emails, and time is wasted. Owners might find themselves facing fines and penalties because inspections and permits are expiring. You might choose the first bid that comes along out of desperation, which might not be the right one. There’s sometimes a lack of transparency. If you don’t have the right vendors in place and the right RFPs in place, you don’t have the transparency you need. You’re getting the only bids that you ...
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29 min