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biddng snow removal

Discussion in 'Bidding & Estimating' started by lucky4511, Apr 22, 2008.

  1. lucky4511

    lucky4511 Member
    Messages: 40

    So, we are new to snow removal and are preparing a bid for 11 small commercial properties and the mgt. company wants a maintenance service agreement package, for two years, with 24 equal monthly payments. To do this for their landscaping - no problem - but for snow.....i am concerned. Does anyone else write contracts in this manner and would you have any insight??
  2. salopez

    salopez Senior Member
    Messages: 876

    its hard to help you with the lack of information you have provided, such as:
    size of lots
    design of lots
    type of equipment you will use/required
  3. lucky4511

    lucky4511 Member
    Messages: 40

    the thing is - i know my costs/prices per push, i am questioning the idea of bidding for 2 snow seasons when i don't know how much it is going to snow. i considered bidding relatively high and offering a rebate if we don't have as many events as i bid - funny now that i write that...i am sure they won't offer me a check should we go over pushes!
    i think mainly my question is, how common of a practice is this?
  4. T-MAN

    T-MAN PlowSite.com Addict
    Messages: 1,363

    Its very common. Many contractors lost there ass this winter here in the midwest, Canada . Alot of companys folded. We had over double our seasonal average here in IL just north of chicago. Wi got hammered too. Our average is 42" we got 96" :eek: I took a beating, but my per push stuff kept me in the black.
    You take the 10 year average of pushes and saltings and there ya go. Pad the crap out of it and you will have zero work. Work in a cap, I used to have them on my seasonals but last seasons contracts did not have them. NEVER AGAIN !
    Do some reading here, plenty of talk about seasonal contracts.
  5. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    If your new & don't know, don't bid it. Mgmt. co's no there numbers & ussally want awesome service but lowest possible bid. If your not sure how many pushes, etc. you will lose your shirt or not get the property in the first place. Put in your time, eventually you will know where your numbers need to be. Its better than growing to fast giving crappy service & having a bad reputation with them for future work.
  6. Camden

    Camden PlowSite Fanatic
    Messages: 6,604

    What poor advice. It's April and this guy is getting his ducks in a row for next season. So what if he doesn't know the average snow fall totals? He sure has time to find that information out. So what if he's never done it before, there was a time when I had to say "I'm new to this". Everyone starts somewhere.

    If the two posts he's made in this thread are any indication of how he conducts his business he's more than capable of getting the job done.
  7. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    How is that poor advise ? They want a bid on 11 properties, if your wrong with your numbers you may not get a second shot. I've been there & done that after listening to advise on pricing for this very site. About 6 years ago, we quoted over 2 million in jobs for one season, were high on every single one. Still have yet to see another bid packet from a number of the property managers. What I learned is pricing in very regional, they ALWAYS want awesome service for LOWEST PRICE at least it must appear that way durring bid opening, there is little to no loyalty so make your money hope for the best next season, don't trust what the bid packet says "trust your conversations with them". I would have been much further ahead if I had listened to the advise I gave him 6 years ago. As the saying goes theres never a second chance to make a first impression.
  8. powerjoke

    powerjoke PlowSite.com Addict
    Messages: 1,341

    to answeer youre Q' as simply as possable YES it can be done this way

  9. Plowin in VT

    Plowin in VT Senior Member
    Messages: 233

    It can be done that way, but do NOT include salting/sanding in the quote. Keep that portion seperate
  10. plowman4life

    plowman4life Senior Member
    Messages: 557

    figure what each parking lot or whatever they are will cost per push. multiply it by X ammount of storms (higher than the average) and add all eleven prices together. that will be the basis for your snowplowing bill. do not add sanding/salting into the bill b/c it will kill you if your wrong. also factor in a fuel charge so that you can pay for the gas you burn.

    so basically youll come out with 1 price for all 11 places. then you add that to your landscaping price for all 11 places and divide by 12 months. that will give you the monthly bill price. not inclding the sanding and salting.

    if you have any questions about anything i said just PM me.