CONTRACTING

Brad Pedersen, Dennis McNamara, Kurt Schrader, Molly Egan, Josh Plunkett, Tony Qualley and Julie Weisenhorn

Landscape contracting is a diverse profession that that the responsibility for maintenance is well defined. requires knowledge in construction practices, local All of this is required for satisfactory plant building codes, excavating principals, plant materials, performance. job schedules, and many areas of business management. A landscape contractor must organize Landscape Construction – The first requirement in and develop a business structure and financial plan landscape construction is to recognize personal tailored to a contracting enterprise. These plans should limitations, personnel limitations, equipment then be reviewed by outside resources for operational limitations, and site limitations. If the landscape and financial feasibility. Topics ranging from all types calls for landscape construction such as walks, of insurance to human resource issues must be patios and decks, accept this construction properly incorporated into the plans. Landscape responsibility only if the firm's personnel have the Contractors obtain work from a variety of sources, ability and experience to achieve professional results. including bidding jobs designed by outside sources, Subcontracting to an outside professional is practical subcontracting from another contractor, or in-house and the preferred route if the necessary resources and Design-Build projects. This also includes the process expertise are not available in house. The Landscape of developing and bidding contracts that need to be in Contractor owes the customer a professionally place before any work can begin. executed project.

A landscape contract is an agreement between the Cost Estimating – It is the responsibility of the Landscape Contractor and a client to provide and/or Landscape Contractor to arrive at an accurate and install landscape elements including plant materials, equitable contract price. To achieve this, it is essential hardscapes or construction, for a specified price. to understand and master the bid process. Two Landscape contracting is a major landscape activity publications helpful in understanding the bid process and must be considered as the most competitive phase are: Cost Data for Landscape Construction by Kerr of . Unfortunately, many landscape Associates, Inc. and Estimating and Management contracting enterprises often fail. It is essential to Principles for Landscape Contractors by Charles become knowledgeable and to gain experience prior to Vander Kooi. Do not assume to have a free reign and venturing into the profession of landscape contracting. therefore, bid any price. All bidding will be against sophisticated landscape contractors who know the Landscape Contractor Requirements value of the project and will bid accordingly. In the Plant Materials – The Landscape Contractor must have case of a Design-Build project, the customer is the the ability to examine a planting site and specify plants final judge of what a fair price is and most customers that will perform in that light, temperature, moisture, will exercise that right. Unfortunately, there is no and soil environment. The Landscape Contractor must protection for the Landscape Contractor in the event of have knowledge and experience in ordering quality a poorly executed low bid. The lowest bidder accepts plants, properly shipping them to the jobsite, and the job and sustains the loss if the bid is, in fact, maintaining them once they arrive at the site. The incorrect. Landscape Contractor must know the proper procedures for planting on each site to assure the General Contracting – Knowledge and experience in success of the designated plants and the design. general contracting is required by a Landscape Finally, the Landscape Contractor must understand Contractor to properly schedule and manage proper maintenance of all plants relative to the design hardgoods, subcontractors, and greengoods. Improper in order to provide maintenance, or properly instruct scheduling can make the difference between success the owner or Maintenance Contractor as to what is and failure. This includes supervision at the jobsite to required to maintain and care for the plants. Insure insure every aspect of the job is being completed as

45 - 1 1106 specified in the contract. This prevents going back to referred to as Design-Build contracting. The correct work and activities that should have been done Landscape Contractor a landscape plan to meet correctly the first time. the customer's needs and interests. The Landscape Contractor then develops the specifications and Legal Documents – The Landscape Contractor must prepares a cost estimate for the project. If all of the know what constitutes a legal document. It is essential above meet the customer's requirements, the to understand the consequences of a signed document. Landscape Contractor will execute the contract and Once sign and executed, both parties will be install the project. Such projects are completely and responsible for the document's contents, whether exclusively under the control of a Landscape understood or not. An attorney should be involved in Contractor. the interpretation of all contracts until such time that the Landscape Contractor has achieved the necessary Landscape contracting is a complicated procedure that sophistication to search out and understand the contract must be thoroughly researched and documented. The document. There are too many pitfalls in the legal customer must be informed of what is being proposed, process to negotiate large contracts without competent when it will be performed, what the cost will be, and legal advice. when payment is due. For the protection of the Landscape Contractor and for the customer's Equipment – Equipment needed for landscape information, it is essential that the estimate document contracting can be obtained by renting, leasing, or and the final contract, fully detail the whole project, purchasing. Renting or leasing is an efficient way to even though changes will likely be made. Changes operate until the sufficient capital is available for the may only be made upon consent of the customer since purchase of highly used equipment. It is usually more changes without customer concurrence and proper effective to rent very specialized or seldom used documentation can be devastating. Changes, equipment. additions, deletions and all costs must be pre-approved by all involved, and they must be documented for Communication – Landscape contractors must presentation at the final invoicing. Remember, after maintain good communication with all concerned. An the job is complete, it is absolutely necessary that the open line of communication with the customer, the customer is satisfied and willing to pay for the deliverers, and suppliers, will help prevent surprises Landscape Contractor's services. when the materials or design must change. It will also help to keep the customer involved in making Owner-originated landscape contracts are usually bid decisions on changes that usually occur in most contracts and require a different approach. These landscape projects. Having the customer closely contracts filter down to the Landscape Contractor involved in changes on the project makes the invoicing through the Building Architect, the Landscape and payment process at end of the project much less Architect, the General Contractor and finally to the complicated. Landscape Contractor. There are many layers of obligations and supervisors in this type of contract. Landscape Contracts The owner will, for his/her protection, have a The simplest form of landscape contracting is the specification document executed and this along with purchase of plant material that is picked up and the 's plan will become the bid installed by the homeowner. This order will be document that will control the project. A successful recorded on a sales slip, and the owner's receipt is the Landscape Contractor must have the expertise to read contract. This contract, or a supplement to it, should and interpret the specification document and the detail the nursery's policy regarding replacement of accompanying landscape drawing. It is essential that plant material and warranties to be extended by the the Landscape Contractor be capable of merging the nursery or the manufacturer. If the order is acceptable specification document and landscape design to verify to, and satisfies the client's needs, the nursery or the accuracy of the proposed contract. Landscape Contractor will not be required to provide further service for the sale. However, in case of plant In bidding a landscape project, the Landscape failure or customer dissatisfaction, the homeowner Contractor must be capable of coordinating activities must have the sales slip contract, or proof of purchase, to mesh with the performance of many subcontractors to complete and finalize the transaction. who will also be on the project. It is essential to have expertise in scheduling and performing tasks when the The most common form of landscape contracting is window of opportunity presents itself. No one

45.2 1106 appreciates being delayed by the inefficiencies of a operations and costs prior to signing a contract. sub-contractor. If errors and delays become too numerous, the consequences can be the loss of a Refer to the chapters on Hardscaping and Landscape project and significant financial losses. Even more Management for additional information on Landscape devastating is the loss of reputation as a reliable sub- construction and maintenance. contractor. It is prudent to obtain considerable experience in contracting before attempting large contract projects. Learn the procedures and details on small projects and do not hesitate to refuse a project if the requirements are too demanding.

Be aware of inherent traps in landscape contracting. The following discussion describes three of many problem areas that require close surveillance at all times.

Plant materials – Most contracts call for a one- or two- year guarantee of survival and growth performance of plants used on the project. The Landscape Contractor must understand hardiness, growth requirements and maintenance requirements of all of the plants used in order to issue the required guarantee. The fact that a landscape architect executed the design is no guarantee that the plants specified are the best or are even suitable for the site. The Landscape Contractor is the person issuing the guarantee and is liable for the guarantee's terms; if problems occur, the consequences can be disastrous.

Labor requirements – The Landscape Contractor must be aware of the labor requirements of the contract. Some contracts require union labor only. If this is the case, be certain that a company's union will be accepted by the contractor. Another common contract clause is the requirement that laborers be paid a specified hourly wage. The Landscape Contractor must know the rate of pay and be capable of factoring this rate into the bid. A mistake in figuring labor costs can eliminate all of the profit from the project.

Completion Dates – Projects that are scheduled to run over a period of years can be a costly disappointment. One must understand and consider the rate of inflation that will occur over the life of the contract and be capable of factoring that rate rise into the bid. Another problem with long term contracts can be the inadvertent delays that often plague such a project. Monetary protection must be provided against delays that extend the project beyond the specified completion date.

Take advantage of learning from experienced professionals in the business, attend educational seminars when available and be informed of all

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