Hospital bidding

Discussion in 'Business Operations' started by Schrock Lawns, Oct 2, 2012.

  1. Schrock Lawns

    Schrock Lawns LawnSite Senior Member
    Posts: 944

    I have the equip to cover it infact the same equip the run a 60 g3 36 gstand a foreman doing nothing and someone weed eating /blowing the do in in around 4-5 hours I can get reliable employees if I need more also equip if I was to even be. Close to getting the contract yea I can handle 90 day pay stuff being its me my dad and at max 2 other people but does anyone know aculty what dept of such to contact to get the info? Ps valley crest does it now
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  2. gcbailey

    gcbailey LawnSite Silver Member
    from WV
    Posts: 2,570

    plant/materials management or house/grounds.... all depends, sometimes you just have to pick up the phone and call...
     
  3. TriCountyLawn

    TriCountyLawn LawnSite Bronze Member
    Posts: 1,517

    I would rather have 4 places that equal the hospital and not put all my eggs in one basket. I would also do some other small commercial stuff first cause no large corp is going to look at a 14yo and his dad. Not to mention they wont want anyone under the age of 18 working on their property.
     
  4. C Jovingo Landscaping

    C Jovingo Landscaping LawnSite Senior Member
    Posts: 436

    Not tryin to be mean... but if the hospital sees a contract like this paragraph, it would probably go straight into the trash. I can't make sense of some of the stuff above..."infact the same equip the run a 60 g3 36 gstand!?!?!?. Huh? Why would foreman be doing nothing? Do you have enough work to keep new employees busy 40hrs a week? Not gonna find employees that will be fine with 4-5hrs a week that you estimate for the job.

    I like your attitude toward growing the business but need to work your way up to the big stuff. Is this really your dads company & you think you are taking over when 18? I am solo part time with fulltime job & hired my son (20 yrs old) with hopes I could send him out by himself & grow the clients, then quit my fulltime job at some point when there was to much work for him to handle in a week. Right off the bat he was telling friends we were partners & told a friend he would hire him when I quit going out to mow! I had to tell him he was not a partner & I would not hire if there was not enough work that would even keep him busy a full week & once he had a full week I would be quiting my job to grow it to keep both of us busy for a full week. I came to realize I'd prob never be able to send him out on his own & ended up letting him go when drought hit. When I did have my son working, I would not even have thought about going after a hospital. What is your dads opinion of going after the hospital contract? Does he even know your getting advice on getting hospital contract? I could see my son doing this when he thought we were partners, without even consulting me first about what I thought about a contract like a hospital.

    Like mentioned in other posts, the hospital would prob not want a 14 yr old working on the property for liability reasons, your company doesn't have the expierience maintaining something this size, you do not already have employees on staff & may be under equipped. I had a friend email me info for bidding Stark Metro Housing Authority properties in my area. She worked there & knew I was doing lawn care, I did not request the info. They wanted to know how long in business, list of equipment, # of employees & amount of time employees have been employeed at the company. They want to see employee stability, not "Oh, I have none & will hire if I get the contract"

    You say the company can handle payroll & financed equip for 90 days at start of season. What about materials, like mulch & chemicals. Probably thousands of dollars in mulch & $100's in chemical before first check rolls in. Lets just say 4 man crew... 4X40hrsX$10=$1600 a week, $1600X12 weeks=$19,200(90 days) + $1000's for mulch + $100 for chemicals + $100's for fuel & maybe $100's for financed equip. Do you have that kind of money rolling in from current accts in 90 days to cover these expenses? Does not make good business sense for a father/son LCO, IMHO!
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    Last edited: Oct 3, 2012
  5. TriCountyLawn

    TriCountyLawn LawnSite Bronze Member
    Posts: 1,517

    Oh and I will add that I have done Hospitals from the employee end and they are a PITA. ..lol
     
  6. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,708

    Lots of luck getting it away from Valley Crest. You won't underbid them unless your guys work for free.
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  7. KrayzKajun

    KrayzKajun LawnSite Fanatic
    Posts: 10,742

    Bingo!
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  8. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,716

    This is the answer to ALL questions. Companies like this have bidding down to a science, have the manpower and capital to make it work, and work off of slim margins. Like someone else posted, I admire the enthusiasm but botching a contract like this could be the end of your business. We just took over a contract from someone who cut our price by 60%, in 2 years his business went bust and the contract holder was suing him for breach of contract and applicable damages.
     
  9. Mark Oomkes

    Mark Oomkes LawnSite Fanatic
    Posts: 12,165

    Ditto

    Excellent advice all the way around. Listen to it Schrock.

    And you beat me to this one.

    Chances of underbidding a company like VC or Brickman are slim to none. If you want to stay in business anyways.
     
  10. Schrock Lawns

    Schrock Lawns LawnSite Senior Member
    Posts: 944

    I don't care about proper grammar an fall that crap when I'm on my phone once again yea I can handle all the equip expenses and that crap my real question for this thread was do you know who to contact in the hospital chain or whoevere
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