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Aaron Sullivan

Need help bidding on large clean and strip job

Question

I am putting together a bid on ~76,250 square feet of cedar shake roofing, and I have some questions.

1. how would you bid this thing? honestly, we are moderately high on deck and fence projects, but we stay busy with homeowners that are ok with that pricing. commercial jobs are a different animal, and i feel like we are going to bid ourselves out of this thing if i go with those prices.

my thoughts are to lower the initial price per square foot (mabye 5-10%), then charge that much for the first third, lower it another 10% for the second third, and another 10% for the last third. the only reason is because i see us getting faster and faster as the project goes.

2. how do i keep this thing from 'killing' my 'normal' business? my thoughts here are to work on this property three days a week (monday, tuesday and friday) and do normal (residential) jobs the other three (wednesday, thursday and saturday). i don't want to drag it out forever, but i don't want to shut the doors on my regular customers to get this done as quickly as humanly possible either.

3. is it ethical to ask for 'draws' on the project? and if so, how should i structure it? i cannot let this thing go to completion to collect one check. my business would literally die from lack of funds. i assume it wouldn't be abnormal to ask for draws from the total. e.g. ask for a draw for every 3-5 building completed (cleaned and stained.)

i obviously don't want to discuss my pricing on here, but would be willing via email.

please help me with any information you can. this is, by far, the largest job i have ever bid on. i feel very comfortable doing the work and it would be a big boost to my numbers this year, so i would like to get the job...just not at the expense of loosing tons of other work or loosing my a$$ on my pricing of this one.

it seems like a fine line...where does it not become profitable enough to continue pursuing?

thanks in advance for your help.

if you would prefer to contact me by email, it is located below.

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Question 1. Needs more info such as:

how many structures?

pitch of roofs?

You say wash and strip. Strip what?

are you sealing the shakes too?

Yes, commercial will be substantially lower than residential prices but doesn't mean give it for free either.

Question 2. It's hard to commit to specific days because of weather, employee no-shows, etc. I would commit to the job until complete, and don't worry about your other customers. Can you have others deal with your regulars? If not, tell them that your calendar is full and you can address them when finished. How many people will be committed to this project? Are you set up to handle this (equipment, workers, etc)? How long do you envision this taking? and, is that OK with the persons asking for the bid.

Question 3. Large commercial jobs will let you draw on funds, usually. I would look for a percentage up front say, 20-30%. That should be enough to get you through the job if you haven't bid too low. Or else payment at certain benchmarks like you described. The only problem with the benchmark thing is that commercial accounts are notorious for 30-60 day payment. Be careful on that.

Advice: don't be intimidated by the size or scope of the project. Everything is do-able, and it may be time to let your business grow. Hire some workers, and get it done.

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Question 1. Needs more info such as:

how many structures?

pitch of roofs?

You say wash and strip. Strip what?

are you sealing the shakes too?

Yes, commercial will be substantially lower than residential prices but doesn't mean give it for free either.

Question 2. It's hard to commit to specific days because of weather, employee no-shows, etc. I would commit to the job until complete, and don't worry about your other customers. Can you have others deal with your regulars? If not, tell them that your calendar is full and you can address them when finished. How many people will be committed to this project? Are you set up to handle this (equipment, workers, etc)? How long do you envision this taking? and, is that OK with the persons asking for the bid.

Question 3. Large commercial jobs will let you draw on funds, usually. I would look for a percentage up front say, 20-30%. That should be enough to get you through the job if you haven't bid too low. Or else payment at certain benchmarks like you described. The only problem with the benchmark thing is that commercial accounts are notorious for 30-60 day payment. Be careful on that.

Advice: don't be intimidated by the size or scope of the project. Everything is do-able, and it may be time to let your business grow. Hire some workers, and get it done.

sorry for the mis-title...

how many structures? 31, not all the same square feet

pitch of roofs? mansard style, practically vertical

You say wash and strip. Strip what? nothing visual to strip, but i will probably lightly strip and oxalic

are you sealing the shakes too? yes, probably use Natural Cedar Ready Seal

as for my regulars, telling them 'i will get to you in a month or so,' won't cut it. i have to find a way to get them taken care of or not do this project. that is how strong i feel about them.

i will have between 5-8 people to commit to it. i am purchasing a fourth machine this year also, so i feel like i have adequate resources. i envision it taking about a month and a half. i am not sure if they are ok with it yet. i plan on having a meeting with the person that called for the bid. or better yet, meet with the board.

i like the idea about an upfront amount, i just worry about it shying them away from me. 'will he take the money and run?' type of thing.

even though i would have been a couple of years ago, i am no longer intimidated by this type of work. i am actually excited about it! i pursued this type of work over the winter (thanks to jeff, the condo king) and this is my first big bid for the year.

thank you for the help...keep it coming!

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bump...

well, not a lot of response to date, but...

could i at least get an example of a detailed proposal for something like this.

i have a proposal for wood restoration, but not for something of this magnitude. i would think it should cover more than just our process and our price. but what, i don't know...

any help would be very appreciated.

even if your proposal is for cleaning and staining several decks, or cleaning and sealing a lot of concrete or cleaning apartment buildings or townhomes...i don't care, i just need some ideas.

so far, i plan on giving...

1. a proposal stating the process, i.e., low-pressure cleaning, involving stripping and oxalic. staining with readyseal and why we would prefer that product. and pluses for using it for maintenance reasons.

2. copy of bbb record

3. copy of insurance, gl and wc

4. anything else???

help, help, help...

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