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Expert Opinions please

Discussion in 'Bidding & Estimating' started by Plow Nuts, Oct 5, 2011.

  1. Plow Nuts

    Plow Nuts Senior Member
    Messages: 214

    Here is our dilemma

    We are bidding a contract for a 6 acre lot with little to no obstructions--very clear easy lot to plow. It also has alot of sidewalks to the building plus sidewalks around a second building (warehousing facility). Basically a 6 acre facility ( 6 acres is the lot to be plowed --the property is 15 acres total--9 acres grass) with 1 large building and 1 small building on the property. Neither of which will impede us from plowing. The night operations manager gave us a copy of his last years invoices. The company spent a total of 13k on 9 storms with snow totaling 54 inches and 2 salt only events. I have this nagging feeling that this is lowwwwww!!! I don't want to overbid or get played. It is the Philadelphia/Southern NJ area. going rate is about 100-125$ per hour for a 3/4 ton or larger truck with an 8ft+ plow. Doing the calculations we were thinking 3-4 hours to plow (some speed bumps in the lot and maybe a few cars/big rigs at times) and clear sidewalks. At 100$ per hr per truck and $125 for the 3 man crew with blowers/small truck with 6ft blade totaling $325 per hour times 4 hours equals 1300 plus salting at 3+ tons per storm. Bulk salt at 60$ per ton billed at 150$ spread on the lot is $1750 for an average 6 inch storm. 6 average storms puts us at 10500. Salt only events would be 450-600$. So for 6 average snow falls and 3 salt only events you are talking 12300$. If there is a 12 inch plus storm the 3-4 hours could turn into 7-8 hours at 2600$. How the hell did the guy last year do it so cheap??? Although I will admit he waited on an 18 inch storm to finish before plowing and another contractor was brought in with a loader to clear the property--too much snow for 2 trucks and that was 5500$. So knowing last year they spent 13k on snow/ice service at 54 inches with 9 events plus 1 event they could not do which cost an additional 5500$, where would YOU bid this at for a seasonal contract??

    We have a few proposals that we are mulling over, but we would like to hear from the seasoned veterans out there knowing the information I provided above including our hourly rate for full crew with equipment.
     
  2. Plow Nuts

    Plow Nuts Senior Member
    Messages: 214

    09-10 snowfall was 86 inches and 11 events
     
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I think your basing your price on using trucks,right? You go in with a loader push box you can cut the time in half. Just because you don't think you can make money the other might of made money. Or he failed and they are looking for someone else to go cheap.
     
  4. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    Grandview brings up a good point, something else to consider, you are going on billed hours, but if you have no wasted travel time going to a bunch of smaller jobs you can afford to do a job a little cheaper on the hour. And not trying to burst your bubble, but at $100/hour there is some movement on margins. I bill out my loader at $100/hour and make great money at that rate
     
  5. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    What buckwheat said. No travel time means bigger lots and your not paying someone to drive around.
     
  6. Plow Nuts

    Plow Nuts Senior Member
    Messages: 214

    That is what I was thinking--thanks guys for the input--it was very helpful :)