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HOA wants cap on bid

Discussion in 'Bidding & Estimating' started by flykelley, Sep 14, 2010.

  1. flykelley

    flykelley 2000 Club Member
    Messages: 2,127

    Hi Guys
    Just was called to bid a small sub about 70 homes, salt and plowing. He tells me he wants a per push bid with a cap on the total dollar amount. I asked him if he wanted a seasonal price or a per push price. He goes on to tell me they want a per push price in case we have a winter like last year (not a lot of snow in lower michigan last winter) but they want to set a cap on total cost in case we have a busy winter. Also told me he didn't want snow piled up at the end of the driveways so the home owners don't have a lot of heavy wet snow to shovel? I had to laugh and ask him how that was going to work out? Have you ever been asked to bid a per push with a cap??? Seem's like they want it both ways with all of the risk on the plow contractor.

    Regards Mike
  2. JDiepstra

    JDiepstra PlowSite.com Addict
    Messages: 1,780

    Typical HOA BS. That's why I don't work for them. Definitely wants to screw you so set the cap high!
  3. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,993

    Go for it, but set your own cap. Something along the lines of "price based on removal of up to 6 inches of snow per event." :D
  4. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,394

    Thats exactly what he's doing! I have never heard of a per time with a cap. Like others have said set a very high cap. People are getting to be a real PITA!

    MIDTOWNPC PlowSite Veteran
    Messages: 4,555

    so go per push price but make the cap something that is way higher then you would ever expect to plow.

    say you normally plow 23 times a season.
    make your cap for 40 times.

    its a custom snow package tailored to their needs.
    dont give them a seasonal price or they will want it to be perpush with the cap being the seasonal price. you cant suck and blow at the same time.

    they get these ideas from their leases that they probably have... eg I have a few leases that say I can increase the rent so much per year and the common costs may increase as it is a proportion share of the work done onsite but it cannot exceed a certain amount per month.
  6. Grn Mtn

    Grn Mtn PlowSite.com Addict
    Messages: 1,644

    holy smokes thats funny, he actually said this with a straight face? ok, lets think of some other examples:

    I live in the HOA and pay my monthly service fee of $100, so I want the lawn mowed, the driveway plowed, new windows, roof, siding and the deck re-stained, but I'm not going to pay anymore than the $100:dizzy:

    or you can say okay its X per push and if we hit XXX then I'll just stop plowing, there is your cap.:laughing:
  7. Grn Mtn

    Grn Mtn PlowSite.com Addict
    Messages: 1,644

    :laughing::laughing::laughing: i'm on the floor.
  8. deicepro

    deicepro PlowSite.com Addict
    Messages: 1,124

    I think thats gonna be my new slogan on the tailgate of my truck:laughing:
  9. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760


  10. flykelley

    flykelley 2000 Club Member
    Messages: 2,127

    Hi Guys
    I couldn't belive it when this guy told me he wanted a per push with a cap. I told him what he really wanted then was a seasonal, but NO he wants per push with a cap. I have never heard of this crap before.

    Regards Mike
  11. salopez

    salopez Senior Member
    Messages: 876


    say sure...so long as he gives you a cap on snow! idiots.
  12. Pristine PM ltd

    Pristine PM ltd PlowSite Veteran
    Messages: 3,891

    have a minimum then...
  13. speedy

    speedy Senior Member
    Messages: 104

    When they stop paying, (reach the designated cap) you stop plowing, contract fulfilled - see you next year!!....WIN, WIN.

    What's the problem?
  14. cold_and_tired

    cold_and_tired PlowSite.com Addict
    Messages: 1,247

    That's how I would do it!
  15. merrimacmill

    merrimacmill PlowSite.com Addict
    from MA
    Messages: 1,823

    The hell with that guy. I wouldn't touch the place. People are just unbelievable sometimes, esp the crazy politics that goes on with some of those HOA's.

    MIDTOWNPC PlowSite Veteran
    Messages: 4,555

    they want "custom snow plowing" that costs more.
    remember alot of other snow plowers wont put up with that bs. I actually like to try and get those places. If you can help them, do what they want, educate them a bit, and make money then they will eventually back out of it and just let you do it for ohh say 3 years.

    this person is trying to minimize all risk... they are one that wants nothing but security. they would be one that would bet $50 on black and $50 on red and be excited they won a bet. pitch them on the security that you can provide... no worries about the snow, a custom package, cap it high, sell it like an insurance policy. multi year so they "dont have to worry or renegotiate"
  17. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    couple of ways to do this:

    A sell him on that new snow insurance that we are all talking about on here

    B. tell him then there has to be a minimum payment per month as well

    c. sell him the "sams club memebrship" he pays XXXXX at the begining of the season, then he pays X per plowing (which is discounted some) if he gets a heavy year, he pays a little more, but not as much as a full per push would have costed him. this amount goes to retain your services and equiptment

    where he wants the snow.... figure out a new place to put it, then tell him, i can put it here with a truck for X or if you want it over there, i need to use a skidsteer and it will be XX its up to...price it 3 different ways, let him choose. one thing i learned, this industry is like compairing apples to oranges. per ton, or per application, per push , or seasonal, per inch, per hour....its almost crazy , i give them as many different options as possible so that they can always compair me to other bidders
  18. flykelley

    flykelley 2000 Club Member
    Messages: 2,127

    Hi Elite
    Thanks for the input, some good ideas to think about. Im going to be meeting him in the next day or two.

    Regards Mike
  19. chaos270

    chaos270 Junior Member
    from CT
    Messages: 22

    Definitly amazing what people will ask for.