In short: In Buttonwood Bay v. Mead (2014), five Key Largo condo owners won summary judgment because the association gave about $610,000 of sewer hookup work to a contractor without competitive bids or a written construction contract. The association raised a sole-source defense too late. The Third District affirmed without opinion, so the owners kept their win.
The Facts
The Third District affirmed without an opinion, so the facts below come from the record and arguments as described in the oral argument, not from findings by the appellate court.
Buttonwood Bay is a roughly 300-unit condominium in Key Largo. When Monroe County built a central sewer line, the association had to connect its 40-year-old sewer system. According to the argument, the engineering contract was competitively bid, but the construction and plumbing work, about $610,000 and more than 5 percent of the annual budget, went to a subcontractor without competitive bids and without a written construction contract. The pretrial stipulation stated the board never voted to award a construction contract.
Five owners, led in the caption by Richard Mead, sued under the Condominium Act’s bidding statute and won summary judgment. After judgment, the association asked to amend to add a “sole source of supply” defense, saying it had called contractors up and down the Keys, received two responses, and finished the job on time and under budget. It also argued the project was covered as design-build work. The trial court denied leave to amend, and the association appealed.
The Decision
On November 19, 2014, the Third District affirmed per curiam without opinion. A per curiam affirmance without opinion (a PCA) is a one-word decision: the appellate court found no reversible error but gave no reasons, so it does not adopt any party’s argument and cannot be cited as precedent.
What the affirmance left standing: the summary judgment for the five owners and the order refusing to let the association add a sole-source defense after judgment. The panel did not say whether it rejected the design-build theory, thought the sole-source facts did not fit the exception, or simply held that a defense raised after judgment came too late.
The Law
Under section 718.3026, condominium contracts for materials, equipment or services that are not fully performed within one year must be in writing, and when a contract will cost more than 5 percent of the association’s total annual budget, including reserves, the association must obtain competitive bids. The association does not have to accept the lowest bid. The statute exempts certain professional services (including attorneys, accountants, architects, engineers, community association managers and landscape architects), contracts with employees and emergencies, and it does not apply when the contractor the association wants is the only source of supply within the county. Associations of 10 or fewer units may opt out by a two-thirds vote.
Board members owe owners a fiduciary duty under section 718.111, and owners can sue to enforce the Act under section 718.303. Affirmative defenses such as a sole-source exception generally must be pleaded before judgment; Florida Rule of Civil Procedure 1.190 governs amendments, and courts rarely allow new defenses after summary judgment.
Current law (2026): Section 718.3026 (2026) requires competitive bids for contracts exceeding 5 percent of the total annual budget including reserves; flsenate.gov history note shows last amendment by ch. 2018-96. The post describes the current statute, not necessarily the 2014 version the trial court applied.
Lessons
- Bidding the engineering contract does not satisfy the statute for the construction work; each contract over the 5 percent threshold needs its own bids.
- Big contracts should be in writing and approved by a board vote; a stipulation that the board never voted is hard to overcome.
- A good result (on time, under budget) is not a defense to failing to bid.
- Plead every exception, such as sole source or emergency, before judgment; trying to add it afterward usually fails.
Watch the Oral Argument
This is the recording of the actual oral argument, posted on the channel. What lawyers and judges say at argument is not the ruling; the decision is summarized above.
Condo Sewer Project Not Competitively Bid — Owners Win | Buttonwood Bay Condo v. Mead, 3D14-1004
Go Deeper
- Florida Condo Owners' Rights: Special Assessments, Records, and Disputes With the Association
- How Appeals Work in Florida: The 30-Day Deadline, Costs, and What a PCA Means
Frequently Asked Questions
When does a Florida condo association have to get competitive bids?
Under section 718.3026, when a contract for materials, equipment or services will cost more than 5 percent of the association’s total annual budget, including reserves. The association must solicit bids but does not have to pick the lowest one. Professional services, employee contracts and emergencies are exempt.
What is the sole-source exception to Florida condo bidding?
Section 718.3026 does not apply if the business the association wants to hire is the only source of supply within the county. In Buttonwood Bay, the association tried to raise this defense after the owners won summary judgment, and the trial court refused to let it amend. The Third District affirmed.
Can condo owners sue their association for not getting bids?
Yes. Section 718.303 lets unit owners sue to enforce the Condominium Act, including the bidding statute. In Buttonwood Bay, five owners won summary judgment over a roughly $610,000 sewer project awarded without competitive bids or a written construction contract.
Do Florida condo contracts have to be in writing?
Contracts for materials, equipment or services that will not be fully performed within one year must be in writing under section 718.3026. Large projects should also be approved by a board vote at a properly noticed meeting so the record shows who authorized the work.
Talk to a Florida condominium and real estate lawyer
Weidner Law, P.A. handles Florida condominium and real estate disputes from St. Petersburg. If you need a real estate litigation lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: every Florida statute and court rule is on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
