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Contract Questions

Discussion in 'Commercial Snow Removal' started by greenfeet, Sep 24, 2002.

  1. greenfeet

    greenfeet Junior Member
    from pa
    Messages: 8

    I am currently bidding on a small condo developement and was wondering if anyone would give me their two cents on what you think it's worth? And by the way - i have joined SIMA but haven't been able to access it yet - hopefully tomorrow.

    Anyway - there are two small roads and adjoining parking lots (about 250' x 40' and 150' x 40' including parking) and there is also about 1200' of sidewalk.

    I will be using an 8' plow and 2 snowblowers.

    I am new to the bidding process and want to make sure that I am going about it the right way. As far as contracts go - i.e. how does the contract work in snow removal? How many time am I expected to plow? What if there is no snow? What if it snows 50 times? And then there is the ice management end of the bid?

    OK - sorry that this is so long but I would really like to get started with this and just want to get some opinions from some of you who know the biz.

  2. Lawn Lad

    Lawn Lad Senior Member
    Messages: 407

    You have a lot of questions that can't necessisarily be answered in two sentences effectively here. You'll find a sample contract on SIMA's site... begin with this. Read the terms and conditions and you'll begin to get some ideas on how you want to price and run your service.

    A condo may want per push or seasonal pricing, most likely seasonal. You'll want to figure out how much you need to make per hour with your truck. Figure out how long it will take to plow the condo (is it .75 hrs, 1.0 hrs, etc) and then multiply your hourly rate against the amount of time you figure. Give yourself a little fudge factor for the bigger snows. Multiply this per push number by the number of snowfalls in your area for the season and that's your seasonal number. You'll need some weather history to figure this out.

    As for de-icing, once you know your square footage you can figure out how much product you'll need on an average. When it's colder and you have snow pack you'll need more salt. Warmer or warming temps you may not need as much. Do a search for application rates on salt. You may want to price it by the bag at first until you're comfortable with how much you're going to use and then as you get more experience you can price per application.

    My recommendation is that you keep your salting separate from the plowing. So whether your customer signs up for per push or seasonal on the contract, keep your salting priced at per application. This will generate some cash flow in the winter and will allow you to have some dialogue with the customer. They may ask you to salt more than you are - and you don't want that to come out of your pocket if they want a more proative or agrresive salting program.

    Good luck with the bid.
  3. greenfeet

    greenfeet Junior Member
    from pa
    Messages: 8


    Lawn Lad - Thanks for the info - as I had said - my SIMA membership wasn't active until today - I am going to start there and see how things pan out - Thanks for taking the time to help me out - I appreciate it. I am ooking forward to accessing the SIMA site and learning all I can about this end of the business.
  4. greenfeet

    greenfeet Junior Member
    from pa
    Messages: 8

    Just curious - anyone willing to give me a ballpark on what they would charge for this prop - either per push or general contract pricing? Any little bit of help would be great. Thanks - Ken