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Care to guess?

Tony Shelton

Environmental Consultant / Past Director
First, I don't have this contract yet, I'm bidding on it next month.



This building is 3.2 million square feet.

Any guesses on the cost of the current annual air filter service contract?

Most changes are quarterly. Some are Bimonthly, a few are monthly.

It's about 1 week per month for a two man team.
 

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Terry Miller

New member
Tony,
We don't do this work, however it would be based on your cost for labor and materials @ 1 week for two men for 12 months.
I'd say if you are charging $60.00 per man hr. that equates to $240. per man per week, @ 2 men = $480. per week @ 1 week per month X 12 months = $5760. + materials. Other variables that come into play is travel time and profit. Thank you.
 

Tony Shelton

Environmental Consultant / Past Director
Tony,
We don't do this work, however it would be based on your cost for labor and materials @ 1 week for two men for 12 months.
I'd say if you are charging $60.00 per man hr. that equates to $240. per man per week, @ 2 men = $480. per week @ 1 week per month X 12 months = $5760. + materials. Other variables that come into play is travel time and profit. Thank you.


Terry,
Good call on my competition's man-hour rate.

Here's the way it works out.

Industry standard is approximately 1 minute per filter. We usually hit .65 minutes per filter in a facility like this.

This facility has 4900 filters.

That's 4900 minutes or about 80 hours 12 times per year = 2 guys -avg 1 wk per month.

980 man-hours total @ $60/hr = $58,800

Filter cost approx. $60,000 (at absolute maximum)

$118,000 is what the bid should be and that is only $740 away from the bid as it was awarded 2 years ago.

$121,548 is the actual amount of the contract with the City of Las Vegas for this year.

If we can keep our normal .65 minutes per filter we can underbid the competition by 10% and still make $77.00 per man-hour vs their $62.00.

I probably won't be able to circumvent the "time in business" requirement for this type work till next year though.

What I might do is sell the patented filter that I distribute to my competition which will allow them faster service and more $$ per man-hour.

There's more to the story of why my competition would want to buy my filter but I can't say more about it online. PM me if you want to know more about that.

I actually would rather sell the filters to my competition because logistically its the most sensible thing to do.

Good guess, just a little underestimating on the amount of filters. A very loose, general rule of thumb is 1 filter for every 600 square feet in this climate. That comes out to 5333 which means some of the building is probably not air conditioned.
 

Jonathan Ellis

New member
If it is a length of time in business issue, have you considered a shelf corporation? I dont know if a shelf corp. will work for what you are needing, but if it is just a length of time in business, you should be ok with one.
 

Josh Dodson

New member
Terry,
Good call on my competition's man-hour rate.

Here's the way it works out.

Industry standard is approximately 1 minute per filter. We usually hit .65 minutes per filter in a facility like this.

This facility has 4900 filters.

That's 4900 minutes or about 80 hours 12 times per year = 2 guys -avg 1 wk per month.

980 man-hours total @ $60/hr = $58,800

Filter cost approx. $60,000 (at absolute maximum)

$118,000 is what the bid should be and that is only $740 away from the bid as it was awarded 2 years ago.

$121,548 is the actual amount of the contract with the City of Las Vegas for this year.

If we can keep our normal .65 minutes per filter we can underbid the competition by 10% and still make $77.00 per man-hour vs their $62.00.

I probably won't be able to circumvent the "time in business" requirement for this type work till next year though.

What I might do is sell the patented filter that I distribute to my competition which will allow them faster service and more $$ per man-hour.

There's more to the story of why my competition would want to buy my filter but I can't say more about it online. PM me if you want to know more about that.

I actually would rather sell the filters to my competition because logistically its the most sensible thing to do.

Good guess, just a little underestimating on the amount of filters. A very loose, general rule of thumb is 1 filter for every 600 square feet in this climate. That comes out to 5333 which means some of the building is probably not air conditioned.

Now that I have all the info needed....could you please PM me the information to submit my bid.:biggrin:
 

Scott Stone

New member
Submit a bid anyway. I ever pay attention to the requirements of time in business. Often, they are just trying to make sure that it is someone that is going to be around. There are a lot of ways around that, and, I am pretty sure that you are going to be around for a while.
 

Tony Shelton

Environmental Consultant / Past Director
If it is a length of time in business issue, have you considered a shelf corporation? I dont know if a shelf corp. will work for what you are needing, but if it is just a length of time in business, you should be ok with one.


I heard they have 5 yr minimum. We overlapped businesses and broke this one off by itself in 2005. If they will allow me to count the other business before the offshoot I'll be almost 12 years. I'm not even sure if what I was told about the time requirement was right anyway. I'll cross that bridge when I come to it.
 

Tony Shelton

Environmental Consultant / Past Director
Submit a bid anyway. I ever pay attention to the requirements of time in business. Often, they are just trying to make sure that it is someone that is going to be around. There are a lot of ways around that, and, I am pretty sure that you are going to be around for a while.


That's kindof my plan.
 
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