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Rough estimate for contract bid

Discussion in 'Introduce Yourself to the Community' started by maddwraph, Mar 10, 2015.

  1. maddwraph

    maddwraph Junior Member
    Messages: 7

    Hi I am planning to go to some commercial places this month in order to offer contracts for next winters snow storms. Form what i researched, people tend to go around the spring.

    I want to draft a contract but I am confused on how much to charge because I hear so many different things. I am told many people will have a contract with a place (lets say building that has doctor offices) and they charge a certain amount for the winter.

    My friend and I would both be doing it.

    I was thinking about a couple places by us that has parking lots of a considerable size, like a school type and charge 30,000 from the winter. that would be from dec 15th- march 15th. this is new york by the way.

    So whenever there is at least a an inch of snow, we will be there plowing.
    That does not include the prize of salting, which i still have not figured out, but I figured the 30k would cover our insurance, truck, plow costs and have some money left over.

    Does this sound fair or too much? I do not want to rip the guy off, but I dont want to break even as well. As soon as I get some rough numbers down that I want to charge I will make a contract draft and post it.

    thank you for your time!! :)
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Doubt the school thing.Your in NY so that means schools are usually done in house with union workers.
  3. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 12,174

    Sounds like a winning plan.

    Research more and then some more.
  4. Defcon 5

    Defcon 5 2000 Club Member
    Messages: 2,923

    Have you ever plowed before?????

    What equipment do you plan on using????

    Where does this $30k figure come from????

    Some money left over?????
  5. maddwraph

    maddwraph Junior Member
    Messages: 7

    My partner plowed before and he has a truck with a plow. Im currently shopping for a truck and plow and found a truck with plow for about 13k.

    I have not plowed but work masonry and have expierence with bobcats and such. the plowing will not be a problem.

    I know these are vague and noob questions but its hard to research because people in my area will not tell me anything because the guys who know are trying to get the jobs themselves. they feel threatened when you ask.
  6. Defcon 5

    Defcon 5 2000 Club Member
    Messages: 2,923

    You need to start with the basics.....You need to educate yourself on the business.....

    Production rates....Your costs for doing the work...Costs for running your business...Have you shopped for Liability insurance?
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Small steps grasshopper.
  8. maddwraph

    maddwraph Junior Member
    Messages: 7

    I have insurance thorough the masonry company in which I can use for snow plowing.

    the number I ran are for the truck and plow, lets say 13k. then the other 2k would be for gas etc.

    By next year I would then have everything and only gas woudl e an issue.

    the other 15k would be for my partner
  9. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 12,174

    No money for salt?
  10. ponyboy

    ponyboy PlowSite.com Addict
    Messages: 1,104

    By us it's cheaper for the schools to sub them out
    They can't guys to work in snow so they only do the salting and machine work and people work here so cheap
  11. Randall Ave

    Randall Ave PlowSite Veteran
    Messages: 3,598

    You better see your insurance agent. Tell him the scope of work your going to perform. Your masonry insurance isn't going to cover snow plowing liability.
  12. maddwraph

    maddwraph Junior Member
    Messages: 7

    I already checked, it covers it unless it goes a certain amount. If I theoretically got a three accounts in one winter that would be a no no.

    also the school thing, i am not planning to go to schools. it was just an example. there are plenty of lots by me where business' depend on parking lots being plowed.

    so by the answers I am getting, 30k for the winter actually sounds like a little bit (I was going for conservative)
  13. ponyboy

    ponyboy PlowSite.com Addict
    Messages: 1,104

    Can't snow plowing work unless it is listed in your insurance
    If you get a commercial contract and you get sued your are seriously up a river
  14. maddwraph

    maddwraph Junior Member
    Messages: 7

    Its listed under the insurance.
  15. ponyboy

    ponyboy PlowSite.com Addict
    Messages: 1,104

    Then you are good now just check limits
  16. maddwraph

    maddwraph Junior Member
    Messages: 7

    Ok, so what would a limit be?

    I wanted to send out bids next week. But I want to have a contract drafted out first to check if its ok. Is there a sample contract somewhere i can look? I cant find one online and most guys I know who do this are your "rougher no internet" type guys
  17. On a Call

    On a Call PlowSite.com Addict
    Messages: 1,077

    Just jump in with both feet and hold on. You will either sink or swim.

    If you are a hard worker, have money to back you , know the ins and outs, are a mechanic or your dad is one, like long long long hours and then start early very early, know the difference between transmission fluid color and pump fluid, understand what short chaining means, like to be cold, like to take risks, understand what slip and falls mean, know how to change a flat in 0 degrees in the dark, and well do not plan on being rich.

    You should go for it.
  18. ponyboy

    ponyboy PlowSite.com Addict
    Messages: 1,104

    Doubt you will pull a job like that for first contract
    Honestly might be better off doing houses in a tight area less risk easier money no need for salter or machine to load
    Biger complexes needs salters a way to load them and most of them need side walk shovled and calcium applied
    So just starting out look for smaller lots of I will say it give group discounts and do houses

    Either way good luck and enjoy the ride it gets old fast

    Or even try subbing for a year or two
  19. ServiceOnSite

    ServiceOnSite Senior Member
    Messages: 950

    Everyone is going to say be a sub for a while or start small. If you dont have the equipment or the money then this is your onlyroute to start. If you have the money to back you then why not start bigger. If they dont need salt ( rare ) then you are that much further ahead.
    If you wanna see someones contract learn how to lie.
    No one here is gonna admit to it, or say they did it,but there are other ways to get jump started in this business. If you dont have the machines to back you ( loaders for a blizzard, and dump truck ) find a sub who does.
    My first years in this business i was honest and i told customers i didnt have the equipment. I seen other who i knew didnt have squat plowing bigger things with less than me.
    When i talked to them they explained the gamble. You work your ass off with what you have so that hopefully you never need a loader to come in. Some times you win sometimes you lose.
    Roll the dice and have a good insurance policy.
  20. ponyboy

    ponyboy PlowSite.com Addict
    Messages: 1,104

    I use my machines to help a friend out when he needs snow moved