Landscape Business Concepts

Bid vs. estimate

• Bids are prices you'd charge to build something or do some work that has been clearly defined by a potential customer. • Can often be referred to as a quote

• An estimate is a price you approximate you'd charge to do less-clearly defined work, based on whatever limited information is available. • “With some assumptions and unspecified things, this

is approximately the price.”

Bids• What are some things to consider in preparing a bid or

estimate to a client?• What did you think about when preparing your business?

• Cost of material• Operating expense• Worker’s comp and insurance• Distance traveled• Number of employees• Quality of workers• Timing

Contract vs. proposal

• In a proposal, you interpret a potential customer's loosely expressed wishes• You also specify in detail how you'd meet their needs

and how much you'd charge to do it the way you're proposing.

• A contract is a binding agreement between you and a customer, complete with caveats and contingency plans explaining who must do what to hold up their end of the bargain.

Specifications• Projects need more than drawings to explain what is required.• Specifications are a listing of materials, quality standards, and

time schedules required for a project.• Copies of the specifications are given to each contractor that

want to submit a bid. • These have to be clearly written for client and contractor. • Example:

• 8 sugar maples

• When clearly defined, the client avoids disappointment and deception.

• Specifications require a lot of time and can be very tedious.

Preparing Cost estimates• Usually prepared as spreadsheets and assembled in columns.• A typical cost estimate includes:• Cost of site clearing• Cost of plant materials• Fee for designing• Allowance• Name of estimator and date of estimate

• The design fee can be handled different ways but is typically charged at 8 to 15% of the total cost.

• Estimate is usually shown at the time the design is shown.

Homework• You are to do the sample estimate problem found on page 214

in your landscaping book. Check a book out and bring to class, next time, a complete estimate.• On page 213 is an example of what it needs to look like. • Worth 20 points

• 5 points for participation• 5 points for designing it correctly• 10 points for getting the correct answer

Landscape calculations

Take-off• The calculations of quantities from plans and specifications is

known as “take-off”. • Take-offs are done at different stages of development. • Can be completed by contractors, management firms,

designers, etc. • The individual assigned to do the take-off is the estimator. • Typical calculations made include:• Unit counts (how much of each plant, brick, etc)• Surface area (lawn size for sod)• Volume (amount of concrete needed)• Time (# hrs. required to clear)

Take-off• Typical Sequence• 1. quantity calculations (#’s)

• Plants• Surface area• Hardscape material• Volumes

• 2. Time calculations• Prep time• Instillation• Clean up

• 3. Maintenance• Watering• Weeding

Surface area • 12 inches………. 1 linear foot (LF)• 3 LF……………….. 1 linear yard (LY)• 1,760 yards……………. 1 mile………..5,280 feet• 4,840 sq. yards……….. 1 sq. acre ………… 43,560 sq. feet• 640 sq. acres………..1 sq. mile

Surface Area Calculations #1• A patio that is 15’ x 15’ is placed onto a lawn that is 35’ x 45’.

• What is the surface area of the patio?• What is the surface area of the lawn?

Surface Area Calculations #2• What is the surface area of the patio?

5 feet

3 feet

15 feet

12 feet

Surface Area Calculations #3• What is the surface area of the pool? • What is the surface area of the flower bed?

pool6 feet

6 feet

5 feet10 feet

Sample Calculation #4• What are the areas of the flower beds A and B?

• How many feet of edging is required to encircle the flower beds?

• A (circle) B (elipse)

8 feet3 feet

4 feet

Volume Calculations • Volume = l x w x h• Volume = surface area x depth

• 1,728 cubic inches…………………. 1 cubic foot (CF)• 46,656 cubic inches…………………1 cubic yard (CY)• 27 cubic feet…………………………… 1 cubic yard (CY)• 1,000 cubic yards……………………… 1 MCY• M is an abbreviation for 1000

Volume Calculations #1• Convert 4 CY to CF.

• Convert 4050 CF to CY.

Volume Calculations • A patio is 20’ x 18 ‘ (Linear Feet). It is to be paved with

concrete 4 inches thick. What is the volume of the concrete required?

• A: 118.8 CF

Volume Calculations #3• A swimming pool is 30’ x 20’ x 5’. It rests on gravel that is 4’

deep and extends the outside of the area by 3’. How many cubic yards (CY) will be required?

• A: 138.67 CY

Time • The unit of measurement for time is hours. • Labor costs are calculated based on how many units can be

accomplished per hour.

• Question 1• If a crew can install 400 SY (square yards) of sod in 8 hours, how

many hours will be required to install 280 SY?

• A: 5.6 hours

Time Calculations #2• If a crew can clear 620 SY of brush in 8 hours, how many hours

would it take to clear 1 square acre?

• A: 62.45 hours

Time Calculations #3• Flower plantings of 6 MSF can be installed at the rate of 75

plants/hr. when spaced 1 foot apart. The contract requires the flower plantings to be rotated 3 times per season; how many hours will be spent installing flowers?

• A: 240 hours