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fuel insurance prices and long term contracts

Discussion in 'Lawn Mowing' started by cantoo, Feb 27, 2000.

  1. cantoo

    cantoo LawnSite Silver Member
    Posts: 2,910

    I am bidding a job that has a 3 year term, I am bidding a little higher because of the rising fuel prices and some other insurance costs that I am sure are going to increase in the near future. Here in Ontario everyone has to be licenced and now insured to buy pesticides so my thinking is that the insurance companies are going to start to gouge us very soon. Has anyone gotten any quotes for this year pestices insurance yet? How much are you adding to long term contracts for fuel increases? Companies over here are wanting long term contracts more and more.
  2. CA Enterprises

    CA Enterprises LawnSite Member
    Posts: 82

    I just recently won a contract with Wal-Mart here in New Mexico. They wanted a 24mo contract so I bid 1.5 times higher than normal just for the rise in gas prices. By the way I am paying 1.40/gallon right now. I wouldn't expect gas to increase more than .20 over the next year with talk of interest rates rising again. That would slow it down some. Also the insurance I couldn't tell you about on the pesticides. The insurance that I have is pretty well a catch all. I got $1m liability that covers all workers comp poperty damage and equipment. As far as I now that should fall under property damage? The cost was $527/year through Ohio Casualty. Hope that this helps.
  3. kermit

    kermit LawnSite Member
    Posts: 138

    I'd worry more about rising labour costs which are heating up in Ontario. If you attended Landscape Ontario Congress in Jan.(you did attend didn't you?) then you saw all the jobs which were on the job board, more than I've seen in a decade. The challenges of the next few years will be in labour and in getting all the work done. I'd make sure your prices are high so you don't regret taking a low paying job six moths down the road when you realize you could be doing the high profit jobs if only you hadn't locked yourself into long term small profit work.
  4. cantoo

    cantoo LawnSite Silver Member
    Posts: 2,910

    I was at the show and I did take a look at the board to see what some of the jobs where. Many seemed to be looking for supervisor type guys which I am sure there will always be a demand for because of seasonal work we do. Most of the labourer positions are likely done thru newspapers and employment agencies. <br> My wife and I are our only employees so we know what our help will be. I have my Father as back up and two boys who are getting old enough to help. We aren't planning on expanding so much that we have to hire anyone so labour shouldn't be much of a concern. This isn't that big of a job but some of the other jobs coming up are also asking for long terms so it might drive the job prices up. One of the reasons we are expanding is because I work in a factory and I am not looking forward to the large number of new hires that we will be hiring very soon. It's hard to believe the what some of the &quot;kids&quot; are expecting to do and get away with. I wanna get out, I'm tired of babysitting.
  5. GroundKprs

    GroundKprs LawnSite Bronze Member
    Posts: 1,969

    Cantoo, from what I have seen in the industry, multi-year contracts are usually written for a 3% to 6% increase yearly. Some are higher in first years, less in later years.<p>Good to use multi-year contract if job requires special or new equipment. That way, you're paying for equipment with that job, and have chance to try to market it elsewhere during the two to five years of the original contract.<p>----------<br>Jim<br>North central Indiana<p>

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