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Government Bid's

Discussion in 'Lawn Mowing' started by alpine692003, Feb 16, 2005.

  1. alpine692003

    alpine692003 LawnSite Bronze Member
    Posts: 1,502

    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:
     
  2. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569


    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.
     
  3. alpine692003

    alpine692003 LawnSite Bronze Member
    Posts: 1,502

    Yah, they require 15% of the total quote..
     
  4. cantoo

    cantoo LawnSite Silver Member
    Posts: 2,910

    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.
     
  5. jaybird

    jaybird LawnSite Senior Member
    Posts: 272

    m and m have you ever had a performance bond. you are way off.
     
  6. wmsland

    wmsland LawnSite Member
    from NE OHIO
    Posts: 127

    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.
     
  7. valley boy

    valley boy LawnSite Member
    Posts: 85

    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 .
     
  8. alpine692003

    alpine692003 LawnSite Bronze Member
    Posts: 1,502

    Yah, its okay.
     
  9. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569


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

    Shadetree Ltd LawnSite Senior Member
    Posts: 390

    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
     

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