Commercial Bid Question

Discussion in 'Lawn Mowing' started by dgreen67, Sep 17, 2007.

  1. dgreen67

    dgreen67 LawnSite Member
    Posts: 97

    I have an opportunity to bid on a pretty large commercial property. The contract specifies many maintenance responsibilities, such as; mowing, mulching, hedge trimming, irrigation responsibilities, leaf removal, etc. I have several smaller commercial properties, but none that are this involved. My question is, how do you go about bidding on something like this? Do you take each individual responsibility, price it, and then add them all up together?

    And, do any of you use others to do specific things on your accounts? For example, I do not have any experience adjusting an irrigation system, closing it up for the winter, etc. I would appreciate any guidance offered. Thanks
     
  2. mvp services

    mvp services LawnSite Member
    from Avon,CT
    Posts: 30

    Are they offering you a two to three year contract? I price out each individual item, add them up and then add the profit margin I would like. I usually give them an annual lump sum and only break down a price per yard for mulch.
     
  3. dgreen67

    dgreen67 LawnSite Member
    Posts: 97

    Thanks for the response. Yes, they are looking for a 3 year contract.
     
  4. dgreen67

    dgreen67 LawnSite Member
    Posts: 97

    Could you give me an example of the profit margin you use? Do you have a different one for commercial vs. residential, or are they both the same?

    thanks
     
  5. mvp services

    mvp services LawnSite Member
    from Avon,CT
    Posts: 30

    generally I try to get a 30% profit. The only pain about some commercial accounts is getting paid. With the annual accounts I get a check every month. If they pay within 14 days of invoice I give them a 2% discount.
     
  6. Fairway Land & Lawn

    Fairway Land & Lawn LawnSite Member
    Posts: 128

    Is there really that much of a problem with your customers paying? Why should you give them a discount for doing what they are supposed to do? You do the work when you say you will, so they should pay when they say they will......
     
  7. mvp services

    mvp services LawnSite Member
    from Avon,CT
    Posts: 30

    I hate waiting that thirty days which most companys do. It gives them a little incentive to pay quicker and eases my cash flow. I build the % into the bid anyway, so its not like I'm losing.
     
  8. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,320

    Sometimes upscale properties will provide you with the previous contract and you can use it as a starter. If they are ethical they should blank out the bid amounts but it ensures that everybody is bidding the same thing. For example irriigation check are usually done monthly, as is bush trimming. The total number of mows per year needs to be set between bidders. In our area there is less profit on commericial compared to residential, but more potential for extra work. Mulch and flowers are not included in the monthly price but rather you bid by flat of flowers and by the bag for mulch. Weed control is assumed so don't forget about that.....and fertilize? You can sub out stuff but .......then you are responsible for results. A few years ago we subed out fertilize/weeds/bug stuff on lawn to TruGreen and they couldn't keep the lawn to the standard required so we had to take over.
     
  9. dgreen67

    dgreen67 LawnSite Member
    Posts: 97

    Thanks for your detailed reply. I will use your advice as I proceed.

    Dan
     
  10. dgreen67

    dgreen67 LawnSite Member
    Posts: 97

    I forgot to ask, when you sub out stuff like that (TruGreen, etc.), do you contact them with the details of the responsibilities BEFORE you submit your bid? I would assume that is the case so that you know how much money to put in for the bid. And do you mark-up (how much?) that price as you assemble your bid?

    thanks for your knowledgeable help
     

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