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Bidding Contracted Jobs

Discussion in 'Bidding & Estimating' started by millsaps118, Dec 18, 2006.

  1. millsaps118

    millsaps118 Senior Member
    Messages: 694

    How many of you bid annually contracted jobs with a cap? i.e. customer pays "X" amount per month for plowing and ice control until snow amounts and or tonnage exceeds "X" amount of inches/tons.

    EXAMPLE MONTHLY PRICE - $500.00
    Includes plowing and salt up to 40" annually.

    Then once this number is met you charge "X" amount for every inch there after and "X" amount per ton for salt for the remainder of that season.

    I thought of maybe structuring my accounts like this for next year but wondered how well it would work.
     
  2. Superior L & L

    Superior L & L PlowSite Veteran
    from MI
    Messages: 3,039

    Sounds like it would be a PITA to manage the billing and contract managment.
     
  3. MStine315

    MStine315 Senior Member
    Messages: 144

    I agree with PA, and I don't think you'll get many accounts that way. I can see all services included, or all but hauling, but not up to an inch level. Kind of defeats the purpose of a seasonal contract, which is predictable monthly payments. The way I like, and I think is standard, is a three year contract, which usually averages out in all parties' favor. i.e. a lot of snow one year, no snow one year, and average snow the third year. AND, you're locked in for multiple years so you can manage equipment purchases, etc...
     
  4. alscape

    alscape Junior Member
    Messages: 1

    I have contracts set up like that but there are two things if the season is over say 5feet then there is a bill for every inch over that. But on the other hand if there is under 5ft I owe the customer money back. Its a tricky contract but they do work. You are getting money no matter what even if say you only have 2ft. Some like it some dont