Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #1  
Old 12-13-2002, 12:31 AM
RwADesigner RwADesigner is offline
LawnSite Member
 
Join Date: Mar 2002
Location: Mississippi
Posts: 107
Lawn Maintenance Bid?

Hey guys..

We are a Landscape Design/build company and this year will be our first to go into landscape maintenance full blown.

We had a Business about an hour away from us, who asked us to give them a bid on year contract of landscape maintenance. He wants a bid for both of his buildings....about 15 min apart from each other.

They are amongst the biggest area of the city, tons of buildings, businesses, everybody drives by there businesses, and they are on main stretch of streets.

My question is....how would you bid this. there is 18k sq ft of Lawn to be cut. No shrubs. 2-3 older oaks in back. and about 30k sq ft of pavement to be blowed and edged. Easy access in and out of site. These measurements are for each building not both combined.

Would you bid this according to the amount of true time it would take you to do the job, or bid it according to the amount of time it would take to actually cut the job... like any other job. Because the possibility of landing other jobs is really great.

Because i figure 1.5hr for load up and travel time. Actual cutting time is probably around 30 min or so for each building.

If anybody can help, please feel free to post.

thanks guys
Reply With Quote
  #2  
Old 12-13-2002, 12:41 AM
MacLawnCo's Avatar
MacLawnCo MacLawnCo is offline
LawnSite Bronze Member
 
Join Date: Feb 2002
Posts: 1,847
It all depends on how you budget as to how you will bid this. Say, that you budget your time and therefore your expenses, based on only MOWING 30 hrs per week. That means that you will be only bidding on how long you are actually there since in your budget, you factor in your "window time". This will give you a higher hourly cost versus the next possibility. On the other hand, if you figure your budget on say 55 hrs per week, then you need to bid it including drive time. Your rates per hour should be different depending on how you set up your budget so in the long run, your estimate ought to be real close to the same. Hope i was not too confusing.
Reply With Quote
  #3  
Old 12-13-2002, 01:41 AM
J&R J&R is offline
LawnSite Senior Member
 
Join Date: Nov 2002
Location: North Georgia-Chattanooga
Posts: 835
I have one account 80 miles from shop it's about 3 hours drive time round trip.and 45 min cut time total 3.75 hours my rate is 60.oo per hour 2 man crew. so i charge 225.00 per cut when i gave 25 cut yearly contract. Point is i stay in town making 60.00 per hour or drive and make 60.00 per hour. and making less when you take into account. wear and tair. and price of gas.
Reply With Quote
  #4  
Old 12-13-2002, 06:53 AM
devildog devildog is offline
LawnSite Senior Member
 
Join Date: Dec 2002
Location: sc
Posts: 270
Re: Lawn Maintenance Bid?

Quote:
Originally posted by RwADesigner
Hey guys..

We are a Landscape Design/build company and this year will be our first to go into landscape maintenance full blown.

Can you add detail; are you already into maint? Com/Res? Do you have staff & equip onboard to take this on? Are you currently using const staff to do maint? etc. With Regards... devildog
Reply With Quote
  #5  
Old 12-13-2002, 11:03 AM
RwADesigner RwADesigner is offline
LawnSite Member
 
Join Date: Mar 2002
Location: Mississippi
Posts: 107
No. We currently do not have the maintenance staff as of yet. We are looking to start hiring in early 2003 once we get some contracts under our belt.

If you only had like 2-3 small residential jobs within a 20 min drive
of your place, but were wanting to grow a maintenance business in a area that is hr away, would you even take on a maintenance job like this. Assuming you didnt have the maintenance employees of as yet, and didnt have any other jobs on the table in that area.

It is a small business job....but probably over 40k people/per day drive by it.
Reply With Quote
  #6  
Old 12-13-2002, 12:27 PM
devildog devildog is offline
LawnSite Senior Member
 
Join Date: Dec 2002
Location: sc
Posts: 270
A lot of what your considering at this time is hypothetical. That is to say your going to get into maint, but have no people, experience and I presume no equip. Well, I’d recommend reversing the thought process before going any further. Were I you, I’d be thinking about the up front costs of this venture. A typical approach would set-up a spread sheet with all the numbers, to put the crew on the road for a year. No small task, but something that should come first, in my humble option. Secondly, I’d run these numbers against my chart of accts (income/budget statements), to find out where the cash flow problems will come in and can design/build cover them. You’ll also be revising your entire chart of accounts to reflect the start-up of this Division. There are LOTS of cost of sales issues with COMMERCIAL maint, specifically driven by the contract itself. This is typically the profit eater for the new comers (coming from the design/build into maint), their typically very oriented to the man-hour & job costing element of construction, thus will more often than not get the estimating correct on maint (or close anyway) but lose their shirt of cost of sales.
I would also suggest you strongly get some bids from company's you respect for their maintenance work (surely you must make some recommendations when you pickup the final draw on your installs). Get these bids IN DETAIL. Let them know they are bidding for you. And let them know you want labor/man-hours sheets. That way if you were put into the position of having to jump (for whatever reasons) in with your own startup crew or sub it elsewhere. Secondly, of those you know, is their someone out there you could buy out and or bring their operation into your company. They could instantly provide income, experienced employees and equipment...just a thought
In closing, a couple small res and a couple small com sites will be hard to justify a new crew and the related startup costs of equip (for a one year contract?), but again its hypothetical, you may very will have the truck/trailer combination available for a 1/2 event and absorb their remaining hours in const work. Maint can be a management time sucker (for the first year) for a design build firm with no experience, its also going to take away from your design / build prospecting. Can you afford that, this coming year? With Regards… devildog
Reply With Quote
  #7  
Old 12-13-2002, 12:38 PM
RwADesigner RwADesigner is offline
LawnSite Member
 
Join Date: Mar 2002
Location: Mississippi
Posts: 107
devil dog,

I agree with you. It isnt like we dont know how to do lawn maintenance and the many aspects of it. I guess my main concern...is where do you start. Unless you just go and buy a lawn maint company or buy accounts, you have to start from scratch. Unless you are just very lucky and land a lot of accounts all at once. And i wouldnt be hiring a crew until i got enough jobs to justify it.

Nice words of advice, though devil dog.

I want to get into maintenance

#1 there isnt much supply of quality lawn maintenance companies where i live.
#very high opportunity of making a great income here
# always looking to grow
Reply With Quote
  #8  
Old 12-13-2002, 01:08 PM
devildog devildog is offline
LawnSite Senior Member
 
Join Date: Dec 2002
Location: sc
Posts: 270
Quote:
Originally posted by RwADesigner
devil dog,

I agree with you. It isnt like we dont know how to do lawn maintenance and the many aspects of it. I guess my main concern...is where do you start............ And i wouldnt be hiring a crew until i got enough jobs to justify it..........I want to get into maintenance.......there isnt much supply of quality lawn maintenance companies where i live.
OK, now we're going somewhere, we're I you. #1 - I'd be looking for a qualified/quality-minded crew leader and get him/her on the payroll ASAP...!!!!! #2 - I would be out talking to property managers looking for bidding oportunities; #3 = I'd be driving thru up-scale neighborhoods looking at quality, those that are'nt are prime for the taking, those that are, are the source of that crew leader (no you don't hear me say stealing an employee)
That crew leader can help you bid the work, get the up-scale accounts and the new division started.......

"It isnt like we dont know how to do lawn maintenance and the many aspects of it" If in fact you already know how, why are you here or asking; "My question is....how would you bid this." My ego is as big as anyone else's, but, there is hardly a day that goes by that I'm not humbled by some biz issue, more often than not: LANDSCAPE MAINTENANCE and the "many aspects of it". With Regards... devildog
Reply With Quote
  #9  
Old 12-13-2002, 01:16 PM
RwADesigner RwADesigner is offline
LawnSite Member
 
Join Date: Mar 2002
Location: Mississippi
Posts: 107
If in fact you already know how, why are you here or asking; "My question is....how would you bid this." My ego is as big as anyone else's, but, there is hardly a day that goes by that I'm not humbled by some biz issue, more often than not: LANDSCAPE MAINTENANCE and the "many aspects of it". With Regards... devildog

Oh..no devil dog,

You misunderstood me man. I never meant to come across as egotistical or that i am know it all. I merely meant that I am not a newbie to lawn maintenance. By far, I have lots to learn about lawn care. I learn somethin new in the design/build business, it seems like everyday. I have much respect for quality Landscape Maintenance companies, and I want to offer that as a service. If anybody is humbled by day to day business issues, I am. See I have already learned alot just from your post. Thanks very much for your post.
Reply With Quote
  #10  
Old 12-13-2002, 02:58 PM
devildog devildog is offline
LawnSite Senior Member
 
Join Date: Dec 2002
Location: sc
Posts: 270
TOUCHE! and don't we all, With Regards... devildog
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.com™ - Moose River Media
All times are GMT -4. The time now is 01:26 PM.

Page generated in 0.11141 seconds with 7 queries