Insurance question

[smithsonmi]

We are getting our subdivision common areas quoted for mowing this season and got 3 quotes of similar $. A homeowner has stepped forward and offered his nephew's 'company' as a potential bidder. This bid was dramatically less ($3k/season vs. $4.5k) BUT they could not show that they were licensed, insured etc..etc..it seemed like a side job. Now I have no problems with saving money but not at the risk of liability or conflict of interest.

Unfortunately this blew up in a pain in the a$$ because we had to raise our dues to pay for the mowing as we seeded 4 acres of common area last fall and mowing is 1/2 of our annual budget.

What would be considered the minimum requirements of a lawn contractor?

Thoughts?

Thanks!

[Avery]

I would say at least workman's comp./liability ins./and several references from commercial jobs they have.

[AltaLawnCare]

In my area 2 million liability coverage is "required" to bid on commercial props.

[lsylvain]

Workman's comp and insurance is a must. You would be surprized what one rock can do when shot out of a mower. I would be even more concerned about it if the person is a realative of one of the homeowners. One problem could cause an upheaval.

Remember that cheaper is not always better. A lot of times people bid to low on a job to get the work and try to cut corners to make a profit.

Getting liabillity insurance takes about 15 minutes over the phone and signing a few forms, and is not that expensive for a basic plan. If he doesn't have insurance tell him to get it. It will protect the both of you.

[Fantasy Lawns]

just a thought from past experience ..... I personally don't like working for friends or family if $$ is a consideration ....
Quality of service with Professional requirements, service & experience will keep the "peace" in the neighborhood ...consider the bid ONCE liability insurance & WC papers are in order & check out a few references ....good luck