A property manager is responsible for contractor selection for a major renovation project. What is a crucial step to ensure due diligence and protect the client's interests?

Question: A property manager is responsible for contractor selection for a major renovation project. What is a crucial step to ensure due diligence and protect the client's interests?

Answer options:

• Always select the contractor with the lowest bid to save costs.
• Rely solely on word-of-mouth recommendations without further investigation. ✅ Obtain multiple bids, check references, verify insurance, and review past work.
• Sign the contract immediately upon receiving a satisfactory proposal.

Correct answer: Obtain multiple bids, check references, verify insurance, and review past work.

Explanation: Proper due diligence in contractor selection involves a comprehensive process that includes comparing multiple bids, verifying credentials, checking references, ensuring proper insurance and bonding, and reviewing examples of past work to mitigate risks and ensure quality.