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Anyone ever had this happen on a bid

Discussion in 'Lawn Mowing' started by BOTURF, Feb 19, 2004.


    BOTURF LawnSite Senior Member
    Messages: 316

    I been bidding a piece of property owned by vectren energy ( pka... Indiana Gas ) a natural gas supplier . When i first bid this lot nothing was ever said about having more insurance than normal but as things wore on they told me and sent another spec sheet that stated i needed 5 million dollars worth of general liabilty and 1 million on my truck and trailer . I can handle or do have 1 million on the truck and trailer and i have 1 million worth of general liabilty but there is no way i am getting 5 million to mow a 35.00 a week cut that takes less than 10 min to cut and blow , it just insnt worth it plus my insurance company almost laughed when i told them what they were wanting . I have alot of commercial accounts and 1 million is all they want . As time has wore on with this bid i have decided to pull it and not look back plus vectren wont even consider me if i dont have 5 million on liabilty , to many hoops to jump thru plus to many butts to kiss to get this accounts maybe they can just go back to cutting it them selfs like last year , and to think they contacted or pursued me for this job ? Has anyone else had this happen or anything even close to this ?
  2. mow2nd

    mow2nd LawnSite Senior Member
    Messages: 603

    Thats why I stay away from commericals. Residental customers are more loyal and can build a LTR with them. Commercials look at the bottom line and don't care that you have a wife and kid at home.
  3. indmowing

    indmowing LawnSite Member
    Messages: 74

    If a company requires you to have a higher public liability cover make them pay for it. If this bid is becoming to time consuming and costing you money and you don't think you can win the bid once you have placed a levy on for the excess insurance then forget it as you said. It seems you have invested a lot of time into this so far.

    We usually don't have to many problems with companies or real-estate here, the people who generally want the higher public liability are usually the government jobs and council work.

    Anyways, our public liability here in Australia is by default usually around $5 million, that's usually the minimum we have. If there is a requirement of Public Liability $1 Million would never be suffice here. Government contracts require $10 million and once in awhile you will get a dreamer who wants you to have $20 Million. Most of the time contractors here will tell the $20 Million people to take a walk lol, don't even bother with it. It's just such a pathetic request and like with your story the insurance brokers laugh at it.

    Take care all

  4. Norm Al

    Norm Al LawnSite Bronze Member
    Messages: 1,227

    there is no reason to pull your bid! double all the costs including the trouble and add those costs to your bid as an ADD ON,,,,,,,they wont care!
  5. pcnservices

    pcnservices LawnSite Senior Member
    Messages: 614

    Boturf you did the right thing. There are many extremes I'll go through getting a job and keeping it, but kissing butt is not my style and my reaction is usually to go kiss your own.
    Like you said don't look back, a $35 account is easy to land.
    Good Luck
  6. terracare

    terracare LawnSite Senior Member
    Messages: 353

    Know how much this costs you and pass the cost on to your customers. Think logical.

  7. J Hisch

    J Hisch LawnSite Senior Member
    Messages: 952

    Your lucky, down here Vectren wants 8 million... but the work is well worth it. multiple sub stations. huge offices..

    BOTURF LawnSite Senior Member
    Messages: 316

    8 million liabilty is just udderly ridiculious to mow grass i dont care what it is , i guess vectren wants people to worship them like a king or GOD , there is noway there going to pay me 85 bucks for 10 min or less mowing per week. That what the increase in premiium passed along to them would equal as i wouldnt add it on to anyone else , pcn your right a 35 buck account is a easy add on once season starts , matter of fact i just added 2 new res accounts for more money while i was wasting my time with vectren for nothing
  9. Yup, Had the same thing with Dayton Power & Light (Their gas division is now Vectrin also).
    I mowed the local office for them for 3 years. It was six acres of lawn. Not a bad contract. I got on their list of approved contractors.
    But every year there would be additional conditions AFTER the agreement was finalized.
    Drug test program for employees, no smoking on the property, bla, bla, bla!
    Then they decided they wanted one lawn contractor for their whole company. "Run all over half of the state." Not for me. Never made any money on the road.
    They send me a contract to bid EVERY YEAR. Thick as a book. I throw it in the trash unopened.
    Bid every year! I'm glad it's working out so well for them!

  10. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Messages: 8,745

    yup, that is why 80% of my customers are residential. The bids that commerical accounts want today are ridiculous.

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