How to Create an Offer for a Landscaping Service Contract

Labor costs should be detailed in the service contract.

Landscaping service contracts set the terms, conditions, prices, and expectations of landscaping services provided to a customer. Service contracts aid both the consumer and the landscaper in controlling costs; expectations and conditions are clearly defined in writing. Landscapers maintain standard pricing for standard services and offerings. Services that exceed standard expectations require that either the customer or the landscaper make an offer on the service contract. An offer made by a service provider is known as a "bid."

Instructions

1. 

   Adding a fountain to a landscape requires time and labor.

   Estimate the number of hours required to complete the contract. Hours spent creating a design or buying special materials should be factored into the estimate. Consider adding a number of hours up front toward any unexpected delays. The number of hours necessary to perform the landscaping service will form the basis for determining an offered amount.

2. Calculate the number of workers necessary to complete the project. The number of workers engaged per hour will affect the cost of the project. Each worker must be paid a fixed rate for each hour worked. A landscaping service must also contribute payroll taxes for wages earned.

3. Calculate the fixed rate that each worker must be paid for each hour worked; add 10 to 20 percent to the base figure. The landscaping service employer will be required to pay state and federal income taxes as well as unemployment taxes for each worker. The landscaping service will also need to cover operating costs through a mark-up on labor.

4. Multiply the adjusted fixed rate times the number of hours required to complete the service contract. Multiply this new amount by the number of workers required for the job. This amount will be the total cost of labor.

5. Estimate the cost for all materials, tools, and supplies necessary to complete the job. Be sure to add the cost of gasoline for transportation to and from the work site. Consider adding an additional amount to allow for unexpected expenses.

6. Add the total cost for materials, tools, and supplies to the total amount for labor. The new total will equal the full cost of the project. If you are the service provider and are preparing a bid, consider adding an additional markup to allow room for negotiating with the customer. If you are the customer, adding a mark-up will allow you some negotiating room closer to your price.

7. Extend the offer. You may open a series of negotiations or the offer may be accepted. Once the offer is accepted, the contract can be signed and services rendered.

References

• Entrepreneur.com: Making an Offer They Won't Refuse
• Inc.com: Making and Sizing Up an Offer
• CNN Living: How To Negotiate Anything
• Edmunds: Negotiating 101
• GroundXChange: How To Write A Landscaping Contract