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View Full Version : Large Commercial Bid $78K-$575K


Lombardi
02-25-2004, 02:42 PM
Since there are a lot of conversations here that deal with pricing I thought I would like to share some information regarding how prices vary when several people bid on the same jobs.
This bid was for a large metropolitan area that outsources all of its' mowing services for all city owned property. We did a site tour of the 65 areas to be mowed. It took 8 hrs. to see all areas. They ranged from very small lots to 25 acre parks.
There were 12 companies that bid on the jobs and they ranged in price from a low of $78,295 all the way to $575,650 for all 65 areas. That is a difference of $497,355. This amazes me. How could one company have that much of a difference in what they feel they need to charge?
Another example is with a large cemetery. The prices ranged from $900.00 to $3100.00. The supervisor even told us that it takes an average of 60 man hours to complete this site. So one company is satisfied with $15/hr. and another wants to make $51.67/hr.
I am glad that I had the opportunity to bid on this because it really shows how people look at jobs differently and what they expect to be paid.

65hoss
02-25-2004, 02:51 PM
So who got the job?

Lombardi
02-25-2004, 09:42 PM
We don't know yet. The bids were opened last Friday.

Randy Scott
02-25-2004, 10:10 PM
I would have to bet that the company that meet the bid specs and had the required equipment, and subsequently the lowest bidder with those qualifications, will win the bid. Pretty much how most municipalities work. If in fact that is the situation here. It is the cities property correct?

Jason Pallas
02-25-2004, 10:21 PM
If it's not too intrusive - where did your bid come in? Just curious.

thelawnkid
02-25-2004, 10:35 PM
Just curious, how do you become one of the companies that gets to bid on all of the city work.

mower power
02-25-2004, 11:04 PM
Just curious, what company had the low bid on all those properties ? Thanks for the info !

GrassBustersLawn
02-25-2004, 11:38 PM
WOW. 60 man hours at $15 per hour??? Either the bidder must be planning on lowering the hours drastically with more efficient equipment (that didn't cost him anything) OR he is using (highly trained) PRISON LABOR at $2 per hour. MAYBE they don't have insurance and the cemetery own isn't concerned BECAUSE EVERYONE THERE IS ALREADY DEAD (and therefore can't suit him)???

I pay $8 to $10 per hour for my workers, with Work Comp & taxes they cost me $12 to $14 per hour. At $15 per hour he is leaving $1 for his gas/mower/trimmer/blower/truck/advertising expenses, AND WHAT IS LEFT FROM THAT IS HIS PROFIT!!!

MIKE

J&R
02-26-2004, 07:51 AM
I had the same thing happen to me. Last month out of 8 bids on a hospital the bid range was 161,000.00 to a low of 20.342.00. I came in with next to high bid of 119,964.00.

upsondown
02-26-2004, 08:33 AM
Mike: You can actually get people to work for $8-$10 an hour?? Man that's amazing. Not around here you wouldn't.

Lombardi
02-26-2004, 09:17 AM
Randy: Yes, it is all city property including the cemetery. You are right, it will go to the lowest, most qualified bidder. The city has been very open about what they expect to pay. They gave us the prices from the past 3 years and it was always $85k-$100K for all properties

Jason: My bid came in at the 4th lowest out of 12. $90k.

lawnkid: Bids like these are open to anyone. In fact one of the bidders is a home builder and one is dry cleaner. Gov't agencies and municipalities are required to post their bid notices publicly. You have to read the papers or go online to a city or business you are interested in.

MP: The low bid came from a small company about 40 miles from this city.

AintNoFun
02-26-2004, 09:31 AM
I bid on a local municipality last year, if was enough for a crew of 4 guys 5 days a week... The guy that got the contract was 1 1/2 hours away, and $35,000 than the 2nd lowest bidder.. Went to the bid meeting yesterday again for the same township, the guy that got the contract wasn't there this year, they said he was outta biz.......

Lombardi
03-19-2004, 12:09 PM
Here is an update on this bid. The 2 lowest bidders were named as primary and secondary contractors. The winning contractor bid the lowest on a very large cemetery. They will be averaging about $20/hr. on the cemetery. I wonder if they will make it through the whole season.

Mike Fronczak
03-19-2004, 12:56 PM
Preimary/secondary contractor, how does that work? If the cheapest guy doesn't work out.....we'll call you? Please enlighten me.

timinkc
03-19-2004, 01:20 PM
Lost a bid on some parks earlier this week 65 acres worth...lost to a guy doing it for about $15/acre...you gotta see these parks to understand this though...lots of trimming, very hilly (ozark hilly)...crazy

Lombardi
03-23-2004, 11:50 AM
Mike,
Yes, that is correct. The primary has the majority of the properties and the secondary has very few. If these contractors fail they keep going down the list until they have someone that can do the job.

cutnitclose
03-23-2004, 12:48 PM
Timinkc are you sure you meant to put that as your avatar.....