View Full Version : HOA bid

08-11-2002, 06:26 PM
I was approached by a board member of a local subdivision. He is interested in having the entire subdivision done by one contractor.

Here are some of the high points

1. They want all houses in a given area done at one time, completely then move on to another area. 300 single family homes.

2. They want all if the irrigation systems inspected and maintained.

3. They want trash and trash cans picked up and cans placed up by garage doors.

4 They want weeds in cracks sprayed with round up.

5. They want the shrubs trimmed.

6. They want the shrub beds sprayed with round up.

7. They want fertilizer applied 3 times per year ( they will supply the fert.)

And here is the kicker . Do you know what they would be willing to pay for this service. They can go as HIGH as $40 per month.
I gave him my card and said when he gets a spec sheet together give me a call. I am not holding my breath. The sad part is that he will find someone to try to give this much service for this price.

Bob Minney
08-11-2002, 07:24 PM
As seen in #4 I knew weed and crack had to enter the equation:dizzy: :dizzy: :dizzy:

I think the snow removal would be worth the 40 month, as long as its a year round contract;)

Potomac Lawns Inc.
08-11-2002, 07:26 PM
you did mean $ 40.00 per month right, you are not leaving any zeros off are you?:confused:

08-11-2002, 07:27 PM
So is that up to $1200 a month at $40 a place or $40 for the whole thing?

08-11-2002, 07:29 PM
Originally posted by Bob Minney
I think the snow removal would be worth the 40 month, as long as its a year round contract;)

That would be about the right price there Bob. $480 a year and if it snows once in 50 years you made some bank.

08-11-2002, 08:21 PM
Forty as in four zero per month for all the work described? If so I wouldn't touch one unit in the place for that much less the entie area. I'd have him add a few zeros after I got done laughing. :p


08-11-2002, 08:39 PM
Originally posted by LAWNGODFATHER
So is that up to $1200 a month at $40 a place or $40 for the whole thing?

$40 (a place or month) x 300 total houses = $12000 on my calculator.

But even so, now you know why he wants only 1 contractor. Maybe the total will dazzle their eyes and someone will jump at it without looking it through. Or maybe looking at the actual property will cause you to jump at it. Let us know what is going on, or if this guy is crazy....:dizzy:

08-11-2002, 08:46 PM
OOps missed a zero:rolleyes:

Fantasy Lawns
08-11-2002, 08:47 PM
Our lots are usually less than .25 acre .....Cost of living is much cheaper ...we have no state income tax ....so don't think prices found in NY, VA, PA or much N or FL will compare

What size lots ?? .... Common grounds is extra ?? Lots of extra's to sell?? ....

$40 a month's not too bad for 300 units ....more than likely under 4k turf (fert n hedging as part I don't like ....I'd like that seperate as some homes may be more detailed than others ...we also charge extra for back yards ) ...we do a similiar job with 125 units ....average 16 mins per home n or just under 40 total man hours per cut ...or under 1700 hrs labor yearly(this is just the homes) ....say you pay out $12 per hr (all said n done...taxes, wc etc.) thas under $25k for labor ....if we got $ 30 per home per month ...that's $45k income ....or almost $20K
granted other #'s gonna eat in the bottom line ... but we get lots of extra's $$$ ....n charge seperate for fert, hedging etc. ....300 units is a lot of headache ... lots of cash flow needs ...don't forget each individual that sprays will need a "blue card" ... W/C if more than 3 employees

Don't jump into something of this size with out thinking it well out ... that is a huge job ....good luck

08-12-2002, 12:43 AM
I think I'm confused about the numbers too. Are you talking about weekly service? If so, that doesn't sound good to me. I hope it works out for you.

08-12-2002, 08:39 AM
Okay, some additional clarification.

Yes it is $40 per month. Yes they want back yards done as well. 4k in turf is about average, some have fences most have additional plantings after builder package was installed. All have pools with screen rooms(responsible for screen damage) There may be some additional sales opportunities but 90% are short term rental (most additions have been made if at all) owners are located out of state if not out of the country (another headache).
I dont think that it will be a problem because I can't see how they will get a majority of owners to pass the ammendment to go to community mowing anyway.

I just want to get some thoughts from some of you that have been there. I will bid it if he gets back with me but it will not be at $40 per month, unless they will agree to an additional 20 k for snow removal also:D

I'll let you know how it goes. Thanks again

08-12-2002, 08:50 AM
what is snow lol actually ive seen it 2x here in 37 yrs and it melted before it hit the ground

08-12-2002, 10:54 AM
I have never had a job anywhere near this many homes, but I have had a large commercial account which was a high percentage of my monthly / yearly income. I recently lost that account and it hurt pretty bad.

I know this is a community of homes and they are all in the same area, but wouldn't it be better to find a couple hundred homes, and charge $40.00 per week (instead of $40.00 per month)?
If you do it this way you will be making more $$ and you wont have to close up shop when you lose that one large account.

Just my opinion.


08-12-2002, 11:43 AM
Good point. You are putting alot of eggs in one basket for a modest profit. Not sure if it would be worth the risk. What would happen if they decide to go with someone else after 2 months? Not alot of loyalty in this biz. Good luck.

08-12-2002, 05:05 PM
I'd feel more comfortable taking on that size job if it was a commercial account. With residential I think the risk of being mis-treated is higher, risk of being dumped when the HOA president quits is pretty real...that's a lot of eggs to have in a risky basket...I'd have to charge a little extra,

08-12-2002, 07:16 PM
A Hoopty truck 2 mowers, 2 trimmer, 2 blowers, 2 pushmowers, 3 guys, and a trailer. Don't put all you eggs in one basket so start another basket.

Can 3 guys do all that mowing in 2 days?

08-12-2002, 07:44 PM
Usually HOA are worth about 3 years worth of work, before the board or President change over and have friends that can do the work for cheaper.

it also seems real cheap, but FL may be that way. And with 300 clients, your daily headaches are just going to multiply.

08-12-2002, 07:59 PM
If its a 12 month contract that comes out to $144,000 annually.

08-12-2002, 08:05 PM
Originally posted by 65hoss
If its a 12 month contract that comes out to $144,000 annually.

We've got a mathamitision here, I may have missed that zero before but I came up with this number and that propagated my post 2 posts up.

$3,000 a week for 3 guys working 2-3 maybe sometimes 4 days a week there.

Actualy looks like it could be a profitable account.

Like I posted above, start a new basket of eggs.

Fantasy Lawns
08-12-2002, 08:13 PM

Down here normal billing it Monthly ..... Year Round .....42 visits ....we get paid regardless of drought, rain, sun, heat, cool, or bugs ....Weekly or "per cuts" is just not heard of (if you want to stay in business ....sure it's done ...they come ....they go)

These are the size yards in our "group" of 125 .... as a whole it takes 40 hrs to complete or 3 guys 2 days ....with the common grounds ==> (common grounds, hedgin,fert n backs are extra)

These types of jobs are typical down here ....gated communities, town homes, retirement complexes ....n the competition is fierce …the $$ is tight …for me a $12k monthly (+140k yearly) …..I’d have to bid on it ….but I'd have to charge extra for hedging, fert n pest .... I always like these job tasked billed seperate when completed

HOA's can be a pain ...n it does have it's head-aches ....as well as rewards .... the communication must be open n honest ....expectations must be written out then followed ....issues must be addressed from both sides n monthly or bi monthly walk thru's (at first than quartely later) are a MUST ....if you want to Keep em (this is key ....walk the job .....point out issues you've notice ....let them do the same)

08-12-2002, 08:53 PM
Steve where is Kissimme Fl?

BTW I am referring to all this on the yearly contract and no other way.

08-12-2002, 09:53 PM
ill sub a days worth if the price is right

08-13-2002, 08:50 AM
Thank all of you. I needed some additional input. It gives me some more to think about. To answer some questions in the thread. Yes I believe that 3 guys could mow in 2 days with the right equipment. My hesitation is the "extras" that need to be done. The idea of another basket is a good one (scary but good).
Kissimmee is south of Orlando FL about 20 miles. This particular subdivision is near Disney World, in eastern Osceola County.
Promo I'll let you know if I need your assistance.:dizzy: