I am thinking of bidding on a maintenance contract with one of the municipalities in my area. The Bid process seems fairly simple, where basically the bidder lists what their contract labor price per hour will be for regular and overtime hours. Materials will used will be billed at a cost. It seems that which ever bidding contractor has the lowest hourly rate would be awarded the contract, provided they are qualified. The contract period is 2 years, so I am assuming that there should be some additional money in there for an increase in overhead. Is there any potential pitfalls to these agreements? We have been doing mostly contract work until now, but I would like the steady cash flow that a service agreement would provide. Looking for any pointers.
Maitenance Contracts
- Thread starter ccrtech
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dmagyar
Senior Member
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- Rocklin, Ca.
Costs tied to "RS Means"
Costs tied to "RS Means"
On one maintenance job contract walk that I went on, all the labor was based on what that procedure listed for on the "R.S. Means" schedules. They have it all wrapped up nicely for both labor rate, area premium, price of materials and hours as listed in the "R.S. Means" book. For them its OK, for the EC's having to do the work it's not much money. We eventually passed on the bidding.
As a P.S. there was no lower limit to what amount of work would be granted, if any.
Costs tied to "RS Means"
On one maintenance job contract walk that I went on, all the labor was based on what that procedure listed for on the "R.S. Means" schedules. They have it all wrapped up nicely for both labor rate, area premium, price of materials and hours as listed in the "R.S. Means" book. For them its OK, for the EC's having to do the work it's not much money. We eventually passed on the bidding.
As a P.S. there was no lower limit to what amount of work would be granted, if any.
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