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Large Commercial Bid $78K-$575K

Discussion in 'Lawn Mowing' started by Lombardi, Feb 25, 2004.

  1. Lombardi

    Lombardi LawnSite Senior Member
    Posts: 538

    Since there are a lot of conversations here that deal with pricing I thought I would like to share some information regarding how prices vary when several people bid on the same jobs.
    This bid was for a large metropolitan area that outsources all of its' mowing services for all city owned property. We did a site tour of the 65 areas to be mowed. It took 8 hrs. to see all areas. They ranged from very small lots to 25 acre parks.
    There were 12 companies that bid on the jobs and they ranged in price from a low of $78,295 all the way to $575,650 for all 65 areas. That is a difference of $497,355. This amazes me. How could one company have that much of a difference in what they feel they need to charge?
    Another example is with a large cemetery. The prices ranged from $900.00 to $3100.00. The supervisor even told us that it takes an average of 60 man hours to complete this site. So one company is satisfied with $15/hr. and another wants to make $51.67/hr.
    I am glad that I had the opportunity to bid on this because it really shows how people look at jobs differently and what they expect to be paid.
  2. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    So who got the job?
  3. Lombardi

    Lombardi LawnSite Senior Member
    Posts: 538

    We don't know yet. The bids were opened last Friday.
  4. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    I would have to bet that the company that meet the bid specs and had the required equipment, and subsequently the lowest bidder with those qualifications, will win the bid. Pretty much how most municipalities work. If in fact that is the situation here. It is the cities property correct?
  5. Jason Pallas

    Jason Pallas LawnSite Bronze Member
    Posts: 1,325

    If it's not too intrusive - where did your bid come in? Just curious.
  6. thelawnkid

    thelawnkid LawnSite Member
    Posts: 139

    Just curious, how do you become one of the companies that gets to bid on all of the city work.
  7. mower power

    mower power LawnSite Member
    Posts: 3

    Just curious, what company had the low bid on all those properties ? Thanks for the info !
  8. GrassBustersLawn

    GrassBustersLawn LawnSite Senior Member
    Posts: 983

    WOW. 60 man hours at $15 per hour??? Either the bidder must be planning on lowering the hours drastically with more efficient equipment (that didn't cost him anything) OR he is using (highly trained) PRISON LABOR at $2 per hour. MAYBE they don't have insurance and the cemetery own isn't concerned BECAUSE EVERYONE THERE IS ALREADY DEAD (and therefore can't suit him)???

    I pay $8 to $10 per hour for my workers, with Work Comp & taxes they cost me $12 to $14 per hour. At $15 per hour he is leaving $1 for his gas/mower/trimmer/blower/truck/advertising expenses, AND WHAT IS LEFT FROM THAT IS HIS PROFIT!!!

  9. J&R

    J&R LawnSite Senior Member
    Posts: 835

    I had the same thing happen to me. Last month out of 8 bids on a hospital the bid range was 161,000.00 to a low of 20.342.00. I came in with next to high bid of 119,964.00.
  10. upsondown

    upsondown LawnSite Senior Member
    Posts: 251

    Mike: You can actually get people to work for $8-$10 an hour?? Man that's amazing. Not around here you wouldn't.

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