Who are these CRAZY contractors????????

[cbturf]

OK I have a question and I am being very serious. Who are these contractors that are bidding on these government jobs in the Southeast? Palmetto will back me up here. On the job in his back yard the guy got the job with a bid of $170/acre? The place was a freakin jungle. A job in Alabama over 1200 acres went for $175/acre. I guarantee that it cost me that much to clear an acre what about you guys? SSP&M could you clear for $175/acre. Before I started mulching I was in the turf business (CBTURF) and I would get $100/acre to mow grass with a 61 inch Ferris walk behind that cost me $5500 and only burned 6 gallons of fuel in a day. If you are one of these guys contact me via PM and tell me what you are doing that your costs are <50% of mine when I know that I have the best and most productive small machine on the market. (FTX 148-L).

PLEASE HELP ME FIGURE OUT WHAT IS GOING ON!!!!

 

[AX MAN]

Dang it man! they must be running the highly efficient, highly productive ASV with its almost indestructable frame. That's the only way they could be stomping you in the junk like that.
No I agree with you. If you heard correctly about the price, you could not work next door for that.

 

[Robbie Hegwood]

I'll even one up that. I know of the guy's who bid the $170/acre and you tell me how they are going to complete the job with a Supertrak 120 and 140. I'll tell you how, they are not. It is no skin off there back if they default on it. It only cost (us tax payers) money to rebid the whole thing over only for it to go for $200/acre.
And the worst part is they are not brand new to this. They should know better. The bidding started to low from the start. I really hope the people overseeing these bids start getting smart and really looking at these companies and evaluating there capabilities and throwing out these bids.

 

[tlbuser]

people aren't throwing money away like they did not so long ago. Not even the government. With tax revenues down, next year won't be any prettier. Problem that some of us have is no one beating on the door begging to give out work. More competitive bidding and cost cutting measures are necessary to earn work now.

 

[tlbuser]

I'll even one up that. I know of the guy's who bid the $170/acre and you tell me how they are going to complete the job with a Supertrak 120 and 140. I'll tell you how, they are not. It is no skin off there back if they default on it. It only cost (us tax payers) money to rebid the whole thing over only for it to go for $200/acre.
And the worst part is they are not brand new to this. They should know better. The bidding started to low from the start. I really hope the people overseeing these bids start getting smart and really looking at these companies and evaluating there capabilities and throwing out these bids.

They would (should) be the ones penalized. If they default, they won't be allowed to rebid on any similar contracts. And, they won't get paid for non-performance.

Does this co. have a track record for not finishing jobs?

 

[Robbie Hegwood]

I will say this. In my job it is a plus and mostly a necessity that I know as many mulching contractors as I can. Until the contract came up in talks I had never heard of them. Now that is good or bad, just nothing. But to be bidding on the size jobs they are you need more equipment and skilled operators. Now if they were bidding high you could sub. Not with these prices!!
I have a few of the biggest mulching contractors in the southeast near me and and in my talks with them we have run the numbers and they wouldn't even go look at the job if the bid is where they are. It would be pointless.
Now onto the competition part. Yes it does create competiton but it would be like a guy coming in and doing your job for half the hourly pay you receive. Then someone doing it to that to them. It is detrimental to the business as a whole. Plus when the prices get back closer to where they should be the money will not be there for they will be used to the low bidding and only alot what was spent last year.

 

[cbturf]

people aren't throwing money away like they did not so long ago. Not even the government. With tax revenues down, next year won't be any prettier. Problem that some of us have is no one beating on the door begging to give out work. More competitive bidding and cost cutting measures are necessary to earn work now.

You can not cost cut when fuel is $3.00 per gallon that is the same for all of us and we all burn at least 5 gallons per hour. We all pay close to the same for insurance, the government mandates pay rates for employees. What I am saying is that for the most part costs are the same for all of us. My machines may cost twice that of a CTL but I am more productive and reliable...making my per acre cost the same. My point is that you cannot even clear an acre for $170/acre much less make any money at that price.

 

[QwikDraw]

I bid one fed job in Illinois, it was 90 acres of 3-4 inch cedar. I bid high just to learn the system. The winning bid was $187 per acre done by a Hydro Axe company that was "just passing through" and wanted to pay for fuel to the next job???

You'll lose a few now but those guys CAN'T be around too long. It's impossible.

 

[cbturf]

You'll lose a few now but those guys CAN'T be around too long. It's impossible.

That particular guy won't be around long but the crazies seem to be lined up clear across the country and cannot wait for their turn to go bankrupt!

 

[catfishdaddyengineering]

I am on the other side of the mulching business, i.e. customer

I just had 12 acres of 3-4yo cutover cleared last month (in between the rain). There was weeds, hardwood regrowth, pine stumps every few feet, and some boggy places. My mulcher uses an ASV100 and FAE head, and he cleared 1/2-3/4 acre per hour. He cleared more in 3 8-hour days than I could have in 3yrs with my chainsaw and brush cutter.

$150/hr at 1/2 acre per hour yields $300/acre for one person and one machine. More machines to clear it faster and you have to add in cost for operators, machines, etc. Me thinks they are trying to get locked in to a long term contract later and then charge $15,000 for a toilet seat.