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Municipal Bid, I'm still in shock.

Discussion in 'Business Operations' started by EcoGreen Services, Mar 4, 2010.

  1. EcoGreen Services

    EcoGreen Services LawnSite Member
    Messages: 205

    Just got the results back on a municipal tender. I'm actually still in shock.

    Take a guess what the contract was awarded for ???

    keep in mind materials and labour for the trees and gardens is included.
    Hint: It's a brand new company.

    I'll post what the winning bid was later. I'm still shaking my head.

    The bid consisted of the following properties
    16 Properties
    9 Cemetaries Total area 6.25 Acres
    3 Parks with a lot of trees Total Area 8.8 Acres.
    3 Works Dept yards 2.4 acres
    1 Rec Center w/ soccer fields - 2.5 acres

    About 20 acres total.

    12 cuts per year

    3 year contract.

    And this is for comprehensive property maintenance including spring and fall cleanups and tree protection not just grass cutting. Here is the scope of work. the total tree count was 862. And there was a substantial performance bond.

    Here's the scope of work.

  2. grassman177

    grassman177 LawnSite Fanatic
    Messages: 9,795

    sounds like a high priced contract. in upwards of 20K$
  3. White Gardens

    White Gardens LawnSite Fanatic
    Messages: 6,776

    I'm not going to be the least bit surprised if someone bid it at 8k.
  4. matt10486

    matt10486 LawnSite Member
    Messages: 210

    I cant wait to see what the bid was
  5. Chilehead

    Chilehead LawnSite Bronze Member
    Male, from Stockbridge, GA
    Messages: 1,956

    My guess is $12K.
  6. EcoGreen Services

    EcoGreen Services LawnSite Member
    Messages: 205

    And we have a winner !


    It was $18,600 the last 2 years.
    The spring and fall portions take a lot of time, So does cleanup.
  7. KrayzKajun

    KrayzKajun LawnSite Fanatic
    Messages: 10,737

  8. milsaps118

    milsaps118 LawnSite Senior Member
    Messages: 562

    That's just crazy.........My guess is 3 thing are going to happen.

    1) The contractor will be loosing his shorts and is going to default on the terms of the contract.

    2) The scope of work will not be met due to poor service/quality and the contractor will get fired.

    3) The contractor will stick it out till the end, realize he took a huge bath on the deal and withdraw from the remaining 2 years.

    If any of the 3 happen, the next lowest bid will be offered the contract. Just hope the next lowest bid isn't $8,301!!!!!!!!
  9. Sammy

    Sammy LawnSite Bronze Member
    Messages: 1,734

    They, the municipality, should know that a low bid like that can not do the job correctly.
    And due to that fact alone, possible damage and more work will be required
    to correct any mistakes the next year. Stupid, just stupid.
  10. Kickin Your Grass

    Kickin Your Grass LawnSite Senior Member
    Messages: 479

    (For The Record) I'm not defending this guy.............

    This stuff is starting to become normal. He might provide good service at that price. The only reason I am saying this is.......

    My buddy had the contract for the local walmart at $1600 per month. It was time to bid again and he didn't get it. It went to a new lawn company that I have only seen around maybe 2-3 years for $985 per month. He does a descent job on it as well. However...... I see him picking up more work at these cheaper rates and the quality going down because he is overloaded on work and can't handle it.

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