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Bidding help!!!

Discussion in 'Bidding & Estimating' started by Par-Bob, Feb 22, 2017.

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  1. emisygrl731

    emisygrl731 Junior Member
    Messages: 1

    First of all, I see that none of the replies so far have been one bit helpful. If you're in the market for sarcasm, this is the place to go. And if you want a bunch of commentary on what-if scenarios for which you weren't even seeking advice this is also the place to go. No one can judge your preparedness to take on a job of this size, and certainly not based on the limited info you've shared. Obviously you've got solid experience and a good reputation considering they're coming to you asking for your participation in the bid process.

    I don't know where you got those prices (and that is a wild difference), but without a formula no pricing advice is valid. So, here are some questions to help you formulate a formula!

    1) get all measurements for areas to be cleared: parking lots, streets and loading docks (where loaders and plows will be used) plus sidewalks etc.
    2) what equipment is sufficient to do the job in a reasonable amount of time (wheel loaders, plow trucks, salt trucks, sidewalk plows/brushes, loader for salt, etc)? make an equipment list
    3) based on the equipment list, how many operators do you need (including sidewalk crews with hand tools and machine/truck operators)? make a crew list
    4) how much of the equipment do you already own? what is cost of leasing any needed equipment that you don't own? get pricing on that
    5) based on crew list, how many hours do you estimate it will take to clear an average snow? make a list broken down by type of equipment/service (snow boxes, plow trucks, salt trucks, sidewalk crew with blowers/shovels or machines?) you can factor how much area they're clearing and how long it should take. tally your payroll for an average storm and for a light storm (salt only)
    6) how much salt will you be applying (considering all scenarios: presalting, a light snow, average snow, heavy snow with multiple applications). you can calculate this using coverage per ton and comparing that to the area you're salting. don't forget to cover yourself in event of price changes. in 2014 we had salt trucked to Michigan from PA when we couldn't get it in Detroit and that was triple our usual cost, so a clause about salt pricing is a good idea "if salt prices go above $____ per ton then our price goes up" (like a price differential)
    7) what other ice melt products are involved? like CaCl. what does the contract say about ice-melt products? what is cost for CaCl if using and how much do you need based on coverage? calculate cost of this for average storm
    8) how much fuel will you use per snow event?
    9) finally, what are the snow averages for your city/area for the past several years? this is pretty important and maybe you've tracked the info yourself, but this info is also available online. look for historical/archived weather data (not by state but by city) and use this info combined with your own data to draw conclusions on averages

    Your factors: average number of plows per season, average number of saltings (salt-only and post plow saltings), how much salt per application (including pre-salt), how much CaCl per application, cost of equipment (rentals), how much payroll, how much fuel, etc. Be careful not to miss anything! After calculating your actual costs, decide what your overhead recuperation should be (%) (insurances, rent, and other expenses that keep your business running) and what your profit should be - decide on a % markup.

    You can utilize information from some of your smaller jobs by answering the same questions about the jobs for which you do have experience, compare size, and consider how that can help you to calculate a property of this size.

    Wrote this out in a hurry, so hopefully it's helpful and without too many errors/typos.

    Best of luck. Confidence always wins.
    Collision likes this.
  2. Michael J. Donovan

    Michael J. Donovan Head Moderator, Online Communities Staff Member
    Messages: 1,269

    We can close this one down
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