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  • landscape install bid

    I am submitting m bid on my first landscape install for a developer tomorrow.

    When I give him the proposal do I just give him one total proce without seperating the materials from labor.

    Or do I need to show the cost of materials and labor seperate with a total.

    It doesn't matter to me either way. I just want to know what the proprer way to do it is.
    Thanks
    Rob
    Green Image Lawn & Landscape

    \"If you don't feel the same way about Friday nights as you do Sunday nights, then you are not doing the right thing.\"

  • #2
    Hi Rob:

    Great question.

    Personally, I do not separate materials and labor. This just gives your customers more bargaining power if they try to negotiate the price downward.

    The only separating I do is if the quote is for several substantial sections of work. I might then give a separate price on each section. That way, if the customer needs to shave some money off the total, he can pick and choose. Still though, I don't break apart labor and materials on the quote.

    Hope this helps:

    Keith
    Start a profitable lawn care business.

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    • #3
      So say the developer accepts the bid.
      My bid is going to be for about $5000.
      $2000 labor - $3000 materials roughly
      What is the standard when dealing with this much money and a developer.

      Do I request half now and half upon completion?
      Or just payment in full when the install is completed?
      Should this be included in the proposal? I would guess it would be.
      Thats alot of money to put out there.
      Rob
      Green Image Lawn & Landscape

      \"If you don't feel the same way about Friday nights as you do Sunday nights, then you are not doing the right thing.\"

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      • #4
        Hey Rob. *Team Gopher emailed me and told me you had responded. *Glad I caught it before bed.

        This is more complicated. *Normally, this decision is handled by the company requesting the bid if it's formal. *If it's informal then this is part of the negotiation. *Call the purchasing manager (accounts payable) and ask what their norm is. *

        How well do you trust this company? *Do you know the owners? *Have you done a credit check or asked for (and checked) credit references?

        $3K is a huge outlay on your part. *What if you install the project and then the company files for bk. the next day? *That's a worst case scenario but those things do happen.

        If this was a company I doubted at all, I would try for 100% payment up front. *You probably won't get it but you have started the negotiation high. *Tell them materials are 60% of the project and you can't float that amount without prepayment. *You can negotiate downward some if needed.

        What if they still refuse? *You have other options. *Try for surety bond or an escrow service. *Fees are their responsibility.

        If you trust them and you feel they are a good credit risk based on your research, a common payment method is 2%10/net30. *This means that if they pay-in-full within 10 days, you will give them a 2% discount (or 1% or whatever you feel). *1% of 5 grand is $50. *The discount rate is to make them want to pay quicker. *Otherwise, they have 30 days to pay.

        These are just a few suggestions but there are lots of other options.

        Good luck. *Let us know how it goes:

        Keith
        PS: Something else I just thought of. If you get the job, don't take it on a handshake or on a verbal okay. Get a signed purchase order from the company with all details outlined.



        Start a profitable lawn care business.

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