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alpine692003
02-16-2005, 11:41 AM
Welp,

I had the opportunity to bid on a government maintenance contract, it was strictly lawn mowing, grass trimming, edging and blowing.. After looking at this 50+ page document, I find that this is ridiculous..

They want a 15% performance bond if you get accepted for the contract, ie) if you quote 100,000k you must put down 15% before you begin the work.

2. If they find any damage to the turf areas, ANY you will be held liable and the city will deduct from you invoice when they send out their city crew to repair it.

3. I would of gotten some of the govt bids since there is only 3 companies bidding on it, me being one of them..

For some of you that are in my area, it's the CITY OF LANGLEY/TOWNSHIP OF LANGLEY..

So I said screw IT!, since it will go with the lowest bidder anyways..

:dizzy: :dizzy:

MMLawn
02-16-2005, 11:47 AM
They want a 15% performance bond if you get accepted for the contract, ie) if you quote 100,000k you must put down 15% before you begin the work. :dizzy:


NO you don't, not if it is a "bond" they are asking for. You "buy" a performance bond same as insurance that pays if you default. WIth good credit a bond for $100K would only cost $100-$200 in the US.

alpine692003
02-16-2005, 11:47 AM
Yah, they require 15% of the total quote..

cantoo
02-16-2005, 07:37 PM
That's pretty typical and sounds the same as the one we have for Town work here. We have never had to pay for any damages of course we have never had any damages either. As for the performance bond we suggested they just holdback one month's invoice instead. They agreed to that and everything goes smoothly, this is the fifth year for us doing it this way. Every year they give us a little more work and we are all happy.

jaybird
02-16-2005, 07:56 PM
m and m have you ever had a performance bond. you are way off.

wmsland
02-16-2005, 08:22 PM
MMLawn is on the right track. Two of the cities that I plow in require a $ 2,500.00 performance bond. I get them from my insurance agent and they only cost me $ 50.00 each.

valley boy
02-16-2005, 09:01 PM
Alpine its designed for Companys with big pockets , most likely the same company gets it year after year or last years guy wants to stay far far away .

alpine692003
02-16-2005, 09:04 PM
Yah, its okay.

MMLawn
02-16-2005, 11:17 PM
m and m have you ever had a performance bond. you are way off.


Why, YES I do jaychick....as I matter of fact I have had one on file for $250K for 6 years now........

Shadetree Ltd
02-16-2005, 11:18 PM
Alpine its designed for Companys with big pockets , most likely the same company gets it year after year or last years guy wants to stay far far away .

Wrong. It is because they go with the low bidder who is usually so low that their work is atrocious. The bond is basically so that if they stop showing up they have the funds to finish the work. This particular contract has been done by at least 5 companies that I know of in the last 5 years. Two were larger companies that always underprice and almost lost everything because they don't know actual costs and a third was nothing more than a clown show. To do the actual work at the contract price would be about $10/hour. The guys doing these contracts simply do as little as possible until there is a complaint, address the complaint and wait for the next one. At least once a month I get to hold a training session with my crew because a contract we have is surrounded by city boulevards. I have had the entire crew sit and watch them cut and trim, rarely if ever do they blow. No shirts, no socks in shorts and runners, running a JD tractor in circles until most of the grass was cut, side discharging against cars & pedestrians. The list goes on but it is a great display of everything I never want to see any of my guys doing.

Scott

MMLawn
02-16-2005, 11:19 PM
MMLawn is on the right track. Two of the cities that I plow in require a $ 2,500.00 performance bond. I get them from my insurance agent and they only cost me $ 50.00 each.

Thank you. My very first one was for $5K and was $100 per year.

alpine692003
02-16-2005, 11:40 PM
Yes, Shadetree..

I know the company that is bidding as well, Orca Property Services and Ralph's Landscaping, I was going to be the 3rd company but I said to myself, screw this..

Wrong. It is because they go with the low bidder who is usually so low that their work is atrocious. The bond is basically so that if they stop showing up they have the funds to finish the work. This particular contract has been done by at least 5 companies that I know of in the last 5 years. Two were larger companies that always underprice and almost lost everything because they don't know actual costs and a third was nothing more than a clown show. To do the actual work at the contract price would be about $10/hour. The guys doing these contracts simply do as little as possible until there is a complaint, address the complaint and wait for the next one. At least once a month I get to hold a training session with my crew because a contract we have is surrounded by city boulevards. I have had the entire crew sit and watch them cut and trim, rarely if ever do they blow. No shirts, no socks in shorts and runners, running a JD tractor in circles until most of the grass was cut, side discharging against cars & pedestrians. The list goes on but it is a great display of everything I never want to see any of my guys doing.

Scott

Shadetree Ltd
02-17-2005, 12:26 PM
It says something when none of the 5 companies that I know of are there to quote it again.

Scott

alpine692003
02-17-2005, 08:06 PM
LOL, company losing money eh?

:cool2:

jaybird
02-17-2005, 08:37 PM
the same 250,000.00 job for six years. i think we are talking about different type of bonds.