Time for bidding

Discussion in 'Lawn Mowing' started by Fishhd, Feb 23, 2008.

  1. Fishhd

    Fishhd LawnSite Member
    Messages: 17

    New to the forum. OK here goes, Its time to bid on a big city mowing contract. Could someone out there in cyber land tell me how the heck we are supposed to bid on a 3yr contract with fuel prices going to 3.50/gallon this year? What will be the price in 2011? I'm a small operation and getting to old to continue the manual labor. It's either go big or get out. Like my signature says.:help::help:
  2. Raven386

    Raven386 LawnSite Silver Member
    from CT
    Messages: 2,169

    Welcome to LawnSite. Put something in your contract that if the price of gas rises over $X.XX there will be a surcharge of $XXX a year. Just my .02
  3. Fishhd

    Fishhd LawnSite Member
    Messages: 17

    They hire multiple contractors so I don't think that's an option.
  4. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    Getting LOCKED in on a price is one of the major factors that I have ran into.
    It's JUST NOT FAIR, for us, sometimes it's the only way to land the contract,
    HOWEVER, in my bids, "while submitting a long term contract" I have several clauses, such rise AND FALL of fuel prices,

    Word it correctly so it looks like a 2 way street, and make a base line of 3.00 per gallon,
    this way, it will be fair for both parties,

    Good luck
  5. Fishhd

    Fishhd LawnSite Member
    Messages: 17

    Thanks for the responses, but the city makes the contract. The contractor agrees to there specs. I believe we could request a pre bidder meeting and the contractors could try to change how the bid reads. Or we could all just keep our yaps shut and hope for the best.:dizzy:
  6. Fishhd

    Fishhd LawnSite Member
    Messages: 17

    Bump. What are we doing in general with fuel prices, I know this must be a topic of daily discussion, but if the comp. isn't raising prices then were all screwed. I know guys still charging 80s prices.:eek::eek:
  7. Albery's Lawn & Tractor

    Albery's Lawn & Tractor LawnSite Bronze Member
    Messages: 1,674

    For the most part, the rise of fuel isn't or shouldn't make or break you. If a mower uses a gallon of fuel per hour @ $3.00 per gallon, it costing you say $0.50 more per hour to run it with a gas price increase really isn't hurting your bottom line (heck thats $4 on an 8 hour day you lose). I know around here you sign the contract and then if the county wishes to renew they can but the operator is entitled to an increase (like7-10%) per year.
  8. FordLawnLandscape

    FordLawnLandscape LawnSite Member
    Messages: 173

    ^ This Guys Pretty Smart !
  9. Fishhd

    Fishhd LawnSite Member
    Messages: 17

    Well your f-150 must get gooood gas mileage. No renewal option.
    OH and hows that dump truck on fuel usage.
  10. Albery's Lawn & Tractor

    Albery's Lawn & Tractor LawnSite Bronze Member
    Messages: 1,674

    Don't use the dump unless where doing new installs that require the tractor or hauling loads of rock,dirt, mulch,etc. Yes the vehicles use fuel and you should be figuring out your expenses and add that into your bid. You do realize there is a cost of doing business. If a $0.50 increase in fuel is going to put you out of business, then you may as well shut down now. With no renewal option, I'd bid it like it didn't matter if I won or not, why bid too cheap where you won't make what you should just to fill your schedule. (Not saying thats what your doing by any means)

Share This Page