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Large Commercial Bid $78K-$575K

Lombardi

LawnSite Senior Member
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.
 

Randy Scott

LawnSite Bronze Member
Location
Wisconsin
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?
 

GrassBustersLawn

LawnSite Senior Member
Location
Indianapolis, IN
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!!!

MIKE
 

J&R

LawnSite Senior Member
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.
 

upsondown

LawnSite Senior Member
Location
culpeper, va
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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