Property owners association job bid?

Discussion in 'Starting a Lawn Care Business' started by mowing4rlife, Dec 20, 2011.

  1. mowing4rlife

    mowing4rlife LawnSite Member
    Posts: 240

    You want me to take the $10,000 offer? I am going to wait to see what the actual contract says before i bid.
     
  2. ReddensLawnCare

    ReddensLawnCare LawnSite Bronze Member
    Posts: 1,652

    Sarcasm
    Posted via Mobile Device
     
  3. FoghornLeghorn

    FoghornLeghorn LawnSite Senior Member
    from Texas
    Posts: 752

    So, for 4 months, no one will be mowing or performing ANY service to this property? Are you sure about that? It doesn't sound right at all.

    Bid what you want to bid to make your desired profit. Chances are, they wouldn't be letting this project go out to bid if their current company was doing a good job for $10,000/year.

    If you're over their budget, who cares? You don't have the job to begin with, so if you don't get it, then at least you won't be stuck on a site for a year in a contract with no profit.

    Lowballing hurts you and the industry. Bid fair, but firm. Don't lock yourself into a bad project just so that you're staying busy. You can do it, man.
     
  4. mowing4rlife

    mowing4rlife LawnSite Member
    Posts: 240

    Thank you for the great advice and being honest about things!
     
  5. mowing4rlife

    mowing4rlife LawnSite Member
    Posts: 240

    They don't want anything done at the beginning and end of the year. The community is really small. Previous team was not reliable, didn't do all they committed to, not consistent. Even though there was a contract these companies or people took advantage of this POA from the start. They told me that they don't want to sue people, because then they have to put out more money.
     
  6. ralph02813

    ralph02813 LawnSite Bronze Member
    Male, from Charlestown, RI
    Posts: 1,041

    I am trying to figure out who is confused, am I right in thinking your are calculating the lawn at between 1/2-1 acre and you will be doing the gardens in just the common areas, if this is the case start smiling and sign the contract.
    The grass looks pretty straight forward so say $100 a week or 400 a month, that gives you $850.00 a month to take care of the gardens. Unless I am missing something.
     
  7. clydebusa

    clydebusa LawnSite Bronze Member
    Posts: 1,660

    Most POA's are POS. If you notice they have a different LCO everyyear. It is always that LCO didn't do want was asked and blah, blah, blah.. Most of the time they have a person that wants to be a CEO type as the president, that doens't have a clue on running a business, and will say I have 10,000 dollars for the budget. When you bid it it is more like 20,000 dollars of
    work and you will get so many jobs, blah, blah, blah. You do get LCOS driving by doing their jobs saying look at those suckers.

    Not always true, but be so careful!
     
  8. KeystoneLawn&Landscaping

    KeystoneLawn&Landscaping LawnSite Senior Member
    Posts: 774

    I don't even bother quoting those anymore. After a couple quotes I realized their budget never fit my cost. They usually want gold for the price of tin. That's just me.
     
  9. RigglePLC

    RigglePLC LawnSite Fanatic
    Posts: 12,108

    IMHO:
    Figure out a standard rate for each machine and operator. (This covers payments, depreciation, gas oil, repairs, blades, and the cost of the man operating the equip (pay plus taxes and benefits)). Add a charge per hour for a share of the overhead, rent and utilities. Estimate the time needed to complete the mowing and routine tasks.

    The big questions here are the beds, weeding and seasonal color flowers. You need to specify or get specifications on exactly what they want. How often the weeds are pulled ,so forth. Try to get them to talk about the last guy--it will give you an idea of what they expect and how easy they are to work with. Say it in big print ...ANYTHING...extra is at time and materials, such change orders in writing only.

    Say your overhead at the office was $10,000 and last year your crews worked an average of 10,000 man hours. You should charge a dollar an hour to cover your overhead.
     
  10. ralph02813

    ralph02813 LawnSite Bronze Member
    Male, from Charlestown, RI
    Posts: 1,041


    I think the big question is what is your cost of doing the job and how does that compare with your busniess. Generally, your base overhead runs somewhere between 1.25% and 5% of your entire business so it is important to know what it really is. That is why it is very important to know your cost of doing business, and what kind of margin you need to work on to make money which allows you to show how much profit you can take.
    If it is possible to seperate different types of long term jobs, you can turn them into individual profits centers and come to different decesions on where you want to make money - equally as important is to know when you are not making money.
    That is also why it is important to know what your margin needs to be because your base overhead is part of that.
    Short story, you cannot assign an overhead number based on dividing hours in sales.
     

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