The Operating Room: Developing a Maintenance Proposal

With all the different types of proposals a client might receive from green industry contractors, ensuring that yours stands out is crucial.

By submitting a proposal, you are essentially applying for a job with that client. With that in mind, your proposal should be as high-quality as any resume you would submit to a possible employer. All proposals should be presented on letterhead that includes your company’s logo, as well as the logos of any local, state or national organizations to which the company belongs. Well-presented proposals should immediately indicate to the buyer that your company is professional, established and up-to-date with the industry practices.

COMMERCIAL PROPOSALS. Proposals for commercial and residential clients are similar, but a commercial proposal will be more detailed. Break down the proposal into several categories including the following:

• Maintenance Specifications: Here, detail the service you plan to provide and describe what work will be included in these categories: turf maintenance, tree, ground cover and shrub maintenance, seasonal color, mulch application and general maintenance.

• Work Not Included: This category is one of the most important clauses in a maintenance contract, but also one that is frequently omitted. Here, specify the types of work that are not included in the contract, such as hand watering, planting additional plant material, overseeding, pruning above 12 feet, extra annual color or mulch, storm clean-up, snow and ice removal, etc.

• General Conditions: In this section, state the "Term of the Agreement" (e.g., twelve months) and describe your termination requirements, such as 30 days written notice for cancellation of service. This is also where you can outline any automatic renewal and/or price increase policies.

• Terms of Payment: Here, state when invoices will be forwarded to your client and the time frame in which you require payment. This may read: "Invoices will be forwarded the first of each month with payment due by the 20th." Specify whether extra work performed during the month is invoiced in the month of service or separately and include your past due policy.

• Legal Statement: This section may outline the company’s liability limitations and any issues related to how lawsuits will be handled, should they arise. Always consult an attorney when dealing with legal information.

• Project Cost: The only remaining point to specify in the contract is the cost of the service you will provide. Often, commercial clients are primarily interested in price, so you may want to consider making this the first page of the proposal, rather than the last page.

RESIDENTIAL PROPOSALS. Though they contain much of the same information as commercial proposals, residential proposals are generally less elaborate. Also, prospective residential clients are more prone to "sticker shock." To avoid this, consider breaking up your proposal into two to five sections and price each section separately. For example, you might itemize the costs for weekly services, fertilization services, horticultural services, mulching, annual color, etc. From there, the client can select the level of service they want in each category, based on their budget.

Again, the most important paragraph in residential is the "Work Not Included" statement. With these points spelled out, you can avoid uneasy conversations with clarity up front. Additionally, an overabundance of detailed legal jargon can make residential clients nervous.

To keep a step ahead of your competition, always include your Certificate of Insurance with your proposal. The residential market in particular needs more education on the consequences of hiring a contractor without proper insurance. You might even want to include a fact sheet explaining clients’ liabilities if they hire a company without insurance. This will be a wake up call for many prospective clients, but making people aware of it will help raise professionalism throughout the green industry.

One final thought. Sale’s is just a numbers game. Therefore, the more proposals you submit, the more sales you will receive – guaranteed.

The author is a green industry consultant with Mattingly Consulting. He can be reached via e-mail at jkmattingly@comcast.net, through his Web site www.mattinglyconsulting.com or 770/517-9476.