Bidding Multiple Rotating Jobs...

Discussion in 'Lawn Mowing' started by cahermit, Nov 26, 2007.

  1. cahermit

    cahermit LawnSite Member
    Posts: 66

    Going later today to discuss taking up a new client. This client is flipping foreclosed homes in my area. He is in need of someone to do 'low grade maintenance' (keep it from growing to the windows), 'high grade maintenance' (make it look good), and some landscaping installs here and there. As he is flipping the houses, it will be a rotating service schedule, meaning that once one sells, he'll buy another one, and so on.

    Now I have never bid a job like this, and I am not sure whether to treat each property as a new bid, or do some sort of contract with the guy.
    I'm leaning towards individual bids... or just charging him a flat hourly rate for all work in all categories.

    It would be very similar to someone bidding to maintain vacant houses for a real estate company.

    How do you guys handle these types of bids?
  2. Envy Lawn Service

    Envy Lawn Service LawnSite Fanatic
    Posts: 11,062

    Hourly rate from the time you pull out... or hourly rate + travel charge... or new bid for each new property.

    These types of things can get very frustrating and/or leave big holes in your schedule and hurt your earning potential. So schedule them accordingly and charge accordingly.

    That means that unless you are real short on work in one or both divisions, schedule them during overtime hours and charge overtime rates for the work.

    Does this line of thinking make business sense to you?
  3. cahermit

    cahermit LawnSite Member
    Posts: 66

    I was thinking to tell him that usually I bid them by property and what needs to be done... But in this case I could also drop an hourly rate, all tolled. In that case, though, I would be doing cheap labor for expensive rates and expensive labor for cheap rates... Hopefully balancing out in the end, but I don't like 'hopefullies'.
    I'm assuming that hourly rate from pull out, and hourly rate with travel charge would be 2 different hourly rates right? Also travel charge is by mile, hour or flat?

    I am kinda short on work, so this is a welcomed 'opportunity' to fill in some hours. Currently he's got 15 houses and looking to pick up more...
  4. mag360

    mag360 LawnSite Silver Member
    Posts: 2,446

    Hourly rate is a great way to go here. You'll get the same return for your time from his "low grade" and "high grade" accounts, which is as it should be.
  5. Envy Lawn Service

    Envy Lawn Service LawnSite Fanatic
    Posts: 11,062

    Well, in that case, you can sorta put aside the "overtime rates" for the CURRENT pricing scheme then.

    All you have to do is just be careful not to get yourself 'monopolized' by these jobs too much... as in do not allow them to get in the way of you taking on other work. And certainly do not allow yourself to get at all dependent on the income involved.

    I'd bid the 15 he has now, and then others as they come...
    Either that or hourly...

    This way you don't end up 'stuck' financially on any jobs as he flips houses in and out...

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