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One Single Hourly Rate

Discussion in 'Commercial Snow Removal' started by salopez, Aug 24, 2005.

  1. salopez

    salopez Senior Member
    Messages: 876

    Alright guys this is a new one for me.

    I have been asked to provide a client offering a nice gov. contract wants a single hourly rate for snow removal. The requirments are a truck with plow and spreader, a dump truck to haul snow, and sidewalk equimpment.

    The rate is for whatever you use. same rate for 1 in snow and I salt everything, and same rate for 10" and I have to have 3 peices of equipment. The rate will also include the cost of salt, and hauling off snow is required, and its in the city so I am assuming at some point it will.

    I know what I charge for each of these peices individually, but not for everything, know that I will not be using all of the pieces all of the time.

    Anyway any input would be great.

    Oh one last think I have to have my bid ready in three weeks.
  2. karl klein

    karl klein Senior Member
    Messages: 557

    i think what the mean is they want a price to haul snow a price to plow snow and a price to clear the walks all per hour not one hourly price for everything
  3. salopez

    salopez Senior Member
    Messages: 876

    Actually they do one one single price. They are taking the hourly fees for each of the 4 pieces adding them together and that is your hourly rate. no matter what work you do, you get that hourly rate. can be good, can be bad. the trick is to bid it so you make some money most of the time, and only loose money alittle bit of the time. I am going to the site this weekend to see exactly how much salt I am going to need.
  4. kl0an

    kl0an Senior Member
    Messages: 215

    Sounds to me like he wants a monthly or annual cost. You can look at the average annual snowfall in your area for the past 10 years or so and base your bidding on moving that amount of snow. I would lean a bit towards the higher costs if he only wants to do it for say 4 months of Winter. If he's talking about grounds maintenance for the rest of the year, you can make up the difference during the Summer months.

    You also might take a look at the site and figure every say 12 inches, you're gonna have to haul it off.. Now, if you get 3 events that are only 4" each, you'll be just plowing and sanding for all three and then hauling for the 3rd. Still falls back to the historical snowfall records though to give an accurate estimate.

    Good luck.
  5. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,394

    I work for the Gov. and they want the absolute cheapest rate. They hired a mentally challanged institute to mow our buildings you should see them, I feel bad but come on.
  6. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    They might be wanting seperate rates for each function as Karl says, but you may also be dealing with a government manager who has no clue what he wants. He has some guidelines to go by and wants to arrange for snow removal so he can move on the next item with the least amount of effort or thought to such an annoyance as a snow contract. So your job is to give him what he wants but at the same time get what you need.

    If you have a Request For Proposal, read it carefully and address each and every item on it. On your proposal, point out the "this" pertains to "that requirement". Keep it as simple as possible. Don't leave anything to chance or open to interpretation. But above all, show that you have addressed everything on the Proposal.

    Now since he/she wants a single hourly rate for "snow removal" but you know it's not all that simple - you are going to have to get a good handle on "averages". So, let's say the average snowfall in your area is 4". To clear this area, it will take an 8' plow and one person shoveling the walks. It will take the plow 1/2 hour and the sidewalk person one hour. The truck is billed at $125/hr and the shoveler is billed at $50/hr. So you're billing $62.50 + $50 = $112.50 for "plowing". Salting costs are next. Let's say this place uses one ton of salt which you would bill at $150 but only takes 15 minutes to spread. You spread salt every time you plow. So the salting works out to $600/hr. You can't charge anywhere near $600/hr. But if you added 1/4 hr of the "plowing" rate to the existing rate, you bring the overall rate up to $140.63/hr. Now, they also want removal, so you'll be hiring dump trucks and paying dump fees. You estimate it will take one hour to load, haul and return one 14 yd dump load. The truck rents for $150/hr and there is a $100 dump fee. So this will cost you $250/hr. You expect to use this every third time you plow, so divide the $250 by 3 = $83.33 and that is what it will cost each time you plow. Add the $83.33 to the $140.63 and you give them a rate of $223.63.

    So, in your proposal you are showing that you will be charging each hour for plowing, shoveling, salting and snow removal. Clearly stipulate that each service may not be performed each time; this is rate is based on averages. Also point out that this includes the material cost (salt - one ton each time it snows) and dump fees ($100 about every three times you plow).

    Now plug in your own realistic numbers for your area and equipment. See how it works out.

    (I see there have been other responses since I started. Karl's was the last one at that time).
    Last edited: Aug 24, 2005
  7. MickiRig1

    MickiRig1 PlowSite Veteran
    Messages: 3,617

    More cost's not mentioned:
    What if you have no Loader or Skid Steer or Operator to load the snow?
    If your going to rent a Skid Steer be quick about it, because the whole area around you reaches critical snow pile amounts at near the same time.
    How far do you have to go to dump the snow?
    Does the local area demand you have permit's etc?
  8. itsgottobegreen

    itsgottobegreen PlowSite.com Addict
    Messages: 1,351

    Well between lopez and I we have two skid loaders, and two kubota tractors with snow blowers and loaders. So thats not a problem :drinkup:

    I have the dump truck and lopez has the pick up. I also was at a complete lost when lopez told me about this one. :dizzy: :confused: Steve I hope you can figure this one out. :help: