1. Landscape Business Concepts

2. 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.”

3. 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

6. 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.

9. 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.

10. 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.

11. Homework
You are to do the sample estimate problem found on page 249 in your landscaping book. Check a book out and bring to class, next time, a complete estimate.
On page 248 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

12. Landscape calculations

13. 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)

14. 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

15. 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

16. 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?

17. Surface Area Calculations #2
What is the surface area of the patio?
5 feet
3 feet
12 feet
15 feet

18. Surface Area Calculations #3
What is the surface area of the pool?
What is the surface area of the flower bed?
6 feet
pool
6 feet
10 feet
5 feet

19. Sample Calculation #4 A (circle) B (elipse)
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)
3 feet
8 feet
4 feet

20. 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

21. Volume Calculations #1
Convert 4 CY to CF.
Convert 4050 CF to CY.

22. 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: CF

23. 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: CY

24. 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

25. 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: hours

26. 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