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Subed out for a commercial property, what to charge?

Discussion in 'Bidding & Estimating' started by rbmarvin77, Dec 30, 2011.

  1. Recently I was contacted buy another local small business, met with the owner and he turned over responsibility of a decent size commercial lot for my to maintain this winter. Plowing only after 2 inches. There was no flat rate discussion he just advised me to send him the bill for the work and he would pay it. He did advise me of what he charges for the place and I'm pretty sure he will be salting it after I am done plowing it. I would like more business from him and want to insure that I am not taking a loss. Any suggestions on what I should charge him in return? Should I just base it on a flat rate per hour? Per Push? how much should he make versus my company? Is there a percentage that people use that's fair to both sub and company that has the contract?
     
  2. BossPlow2010

    BossPlow2010 PlowSite.com Addict
    Messages: 1,033

    How large is the lot?
     
  3. Lot Size

    I have not measured it out yet. We just did a drive around the property yesterday. I know there are some websites that can assist with that. If you have recommendations on one I can look it up and get that info.
     
  4. McG_Landscaping

    McG_Landscaping Senior Member
    Messages: 191

    findlotsize.com
     
  5. BossPlow2010

    BossPlow2010 PlowSite.com Addict
    Messages: 1,033

    Measurefromspace.com

    There's one that was in the sima snow magazine last season, I can't recall what the site is maybe someone else knows.
     
  6. The part in bold is really important! I assume you are new to the industry so I will give you a piece of advice......NEVER do any work as a sub without a signed contract which clearly states your scope of required work, price, payment terms etc, as well as liability disclaimers( if hes the one salting will you be liable for slip/falls etc),etc! Also how can you be sure he didnt just make up some low number that he says he charges just to get you to do it cheaper? Go out, determine YOUR bid and have him sign a contract with you for that amount!
     
  7. Ref Lot size

    Just under 60,000 Sq Feet. Thanks for that referral on the website. It worked well.
     
  8. McG_Landscaping

    McG_Landscaping Senior Member
    Messages: 191

    no problem. i used that site and then measured a few places in person and its almost dead on
     
  9. Your are correct I am new to the industry. Alot of plow experience for a municipality that I worked for several years for. It is my intent to do paperwork. I will be meeting with an attorney in the near future to have them create a couple different contract templates for me for both sub work and business I get on my own. It is also my intention to sign up for SIMA.org in the very near future as well. I hear they have alot of excellent resources for the new small business including a mentoring program. Thanks I will surely take your advice and apply it.
     
  10. BossPlow2010

    BossPlow2010 PlowSite.com Addict
    Messages: 1,033

    So 60k= 1.3 acres which will take you X amount of time to do for Y amount of snow and Z type of vehicle you have.
    X,Y, & Z being the variables.

    That's how you figure a good price.
     
  11. LOL...I appreciate that input but x,y, and z. is an issue for me to evaluate to put into a calculation as I am new to the business end of things. I guess I was kinda hoping for a percentage of whats fair for me and a percentage for the company that has the contract. Is that a bad way to look at it?
     
  12. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,046

    Personally I'd ask him what he thinks is fair and go from there. Your better off to have your number in mind before you ask him this so you know where you stand, Not every contractor is out to screw a sub. I tell my subs what I want to pay and what is expected of them and they can choose to do the work or not.
     
  13. Yea that's kinda what I was trying to figure out was my number. Thanks to Andy at A& L Site Services he has helped me figure out that number. And you have confirmed what I was thinking about. Going to him with a number and making sure we were both on the same page and good with that number so we can have a good working relationship that may produce more work!