Associations with 10 or fewer units may opt out of the provisions of this section if two-thirds of the unit owners vote to do so, which opt-out may be accomplished by a proxy specifically setting forth the exception from this section.

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   (1) All contracts as further described herein or any contract that is not to be fully performed within 1 year after the making thereof, for the purchase, lease, or renting of materials or equipment to be used by the association in accomplishing its purposes under this chapter, and all contracts for the provision of services, shall be in writing. If a contract for the purchase, lease, or renting of materials or equipment, or for the provision of services, requires payment by the association on behalf of any condominium operated by the association in the aggregate that exceeds 5 percent of the total annual budget of the association, including reserves, the association shall obtain competitive bids for the materials, equipment, or services. Nothing contained herein shall be construed to require the association to accept the lowest bid.

   (2)(a) Notwithstanding the foregoing, contracts with employees of the association, and contracts for attorney, accountant, architect, community association manager, timeshare management firm, engineering, and landscape architect services are not subject to the provisions of this section.

   (b) Nothing contained herein is intended to limit the ability of an association to obtain needed products and services in an emergency.

   (c) This section shall not apply if the business entity with which the association desires to enter into a contract is the only source of supply within the county serving the association.

   (d) Nothing contained herein shall excuse a party contracting to provide maintenance or management services from compliance with s. 718.3025.

   (3) As to any contract or other transaction between an association and one or more of its directors or any other corporation, firm, association, or entity in which one or more of its directors are directors or officers or are financially interested:

   (a) The association shall comply with the requirements of s. 617.0832.

   (b) The disclosures required by s. 617.0832 shall be entered into the written minutes of the meeting.

   (c) Approval of the contract or other transaction shall require an affirmative vote of two-thirds of the directors present.

   (d) At the next regular or special meeting of the members, the existence of the contract or other transaction shall be disclosed to the members. Upon motion of any member, the contract or transaction shall be brought up for a vote and may be canceled by a majority vote of the members present. Should the members cancel the contract, the association shall only be liable for the reasonable value of goods and services provided up to the time of cancellation and shall not be liable for any termination fee, liquidated damages, or other form of penalty for such cancellation.

s. 13, ch. 91-103; s. 5, ch. 91-426; s. 10, ch. 92-49; s