1. Ask the Expert: Fertilization Strategies for Success: Dec. 12, 2017
    Learn how to do more with less when it comes to your fertilization services. Join the live Ask the Expert event hosted by Koch Turf & Ornamental: Dec. 12, 12-2 p.m. ET in the Fertilizer Application forum .

Dealing with HOA Contracts

Discussion in 'Business Operations' started by TurfdudeNCSU, Jan 16, 2006.

  1. TurfdudeNCSU

    TurfdudeNCSU LawnSite Member
    Messages: 76

    We signed a local Home Owners Association Entrance maintenance last August. We included everything that they ask for, Weekly maintenance during growing season and biweekly during winter, mulch twice a year, and flowers twice a year. There were several others that bid lower than we did, but because of our references and work experience they chose us. Now, the president has called and said that they couldn't afford our fee of $615.00 per month and we need to adjust to around $400.00 per month. I told her that about the only way was to do one mulching per year instead of two, that might save alittle. But then, I told her that would affect the way it looked and they would pretty much be back to were they started, with a basic service were the residences weren't happy with the look of it. They did have a choice back in August when they signed the contract, and they did know how much it was going to cost per month. We have also picked up several accounts in the neighborhood do to the way it looks, and plan on more this spring. Do you think that I should adjust or make them finish their contract and readjust next year?
  2. MMLawn

    MMLawn LawnSite Gold Member
    Messages: 3,569

    Hum, I see the HOA President is pulling HOA 101 on you...a commonly used tactic by this low life species and exactly why I don't even return HOA calls or RFQ's....of course you hold them to their contract...and don't worry about next year as they will bid it out again anyway no matter of the quality of the work and she has already told you this in asking you to drop your price by a huge 35% already!

    CLARK LAWN LawnSite Silver Member
    Messages: 2,526

    exactly!! they are testing you to see if you'll move on price if you called them up and said i'm not making enough money i need to raise you by 35% they would say no way we have a contract so why should you lower your price for them
  4. AintNoFun

    AintNoFun LawnSite Bronze Member
    Messages: 1,807

    one of the reasons im moving out of the condo/hoa market... the boards that run these places are OUT OF CONTROL anymore.....:dizzy:
  5. ed2hess

    ed2hess LawnSite Fanatic
    Messages: 14,448

    We do some condo units....since you been mowing this property you have a good idea what the profit margin is. Have you noticed any other large costs that the association may have had that has created this crisis? If not then they are fishing. They knew several months ago what it would cost them and how that got reflected in the dues to members. I would definitely cut out the mulch first since they are short on money, and then throw the flowers overboard. I would not agree to lower the price until the end of the contract. If your margin is good agree to lower it nwxt year some percentage, not the entire amount they want. Since there is no question about the quality of the work these HOA tend to not want to get involved in any legal problems so I don't think they will try to cancel early.

    JKOOPERS LawnSite Bronze Member
    Messages: 1,259

    i lost a hoa in nov due to this same situation . i just picked up the job in nov 2004 and i gave them a bid for a full service maint. and they told me all year long how great the place looked and its never looked better . then here comes nov 2005 hey jeff we are putting this out to bid again ok so i stuck with my same bid but i raised it by 10% to compensate for the gas hike and cost of living . then 3 weeks later after i just finished a leaf clean up that they told me looked great , we found someone else that was $3500 cheaper than you . then hoa asked if i could match the bid they got i simply told them i am running a business not a non profit organization . I know i will be getting a call back
  7. TurfdudeNCSU

    TurfdudeNCSU LawnSite Member
    Messages: 76

    Thanks for the imput guys. Looks like they will have to finish their contract before we change any prices. I heard from a home owner that he thinks the board mentioned how much we were getting paid to some of the residences and their mouth hit the floor. I honestly think that is what is causing this stink, but that alright Contract price is good until August... Show me the $
  8. Jpocket

    Jpocket LawnSite Silver Member
    Messages: 2,281

    Hold them to the contract this year, then lower it next year and do one mulching.

    Thats one thing I won't do, even if I need the money is to let someone dictate what im worth. Next year I'd go for about $500 a month, thats what they are really looking for when they say $400, they figure if you say OK to the $400 it's a bonus.

    If you lose the contract just go after all of the houses in the nieghborhood.

Share This Page