Snow removal rip off?? - REO Property Preservation Forum
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post #1 of 15 (permalink) Old 02-18-2014, 02:14 AM Thread Starter
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Angry Snow removal rip off??

How are we all doing with snow removals?? We feel ripped off.

6 years in Property Preservation and I find myself speechless over this...

I live in PA and we have gotten LOTS of accumulation....
Right now, there is a foot of snow & ice, with 20 inches of fresh stuff on top.. and we are getting 4-6 more tonight...

We received snow removal work orders for every property we maintain...

HUD requires we remove up to 3" of snow & ice "per HUD guidelines"... which means we must clear walkways, porches, driveways & add rock salt...

Over the last 5 years, the companies we worked for paid a flat rate for up to 6 inches of snow... up to 12 inches was another flat rate... after that, we had to call from site with our bid. The pay used to be great- what happened??

So what about 2014??? HUD pays $50 flat rate to clear all snow. ( minus 20% or 25% fee)
NOT allowed to bid for over-allowable amounts?

Needless to say we refuse to do any more unless we can bid them...
Now I'm kinda wondering... if they become Code Violations- can I bill for the Code Compliance on top of the $50 to remove it??? Hmmm...... ( LOL )

Last edited by GreenwayLady; 02-18-2014 at 02:15 AM. Reason: forgot history
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post #2 of 15 (permalink) Old 02-18-2014, 06:52 AM
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What did you sign with the company that wants you to remove this years snow?

Per HUD guidelines I'm readin ... HUD ML-18... "3" of snow", doesn't say anything about layin salt down. Bid the work pretty simple...you're an independent contractor. Bid everything over 3". Find out the local ordinances 1st...
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post #3 of 15 (permalink) Old 02-18-2014, 06:57 AM
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Seems like we were at $75 last year with Fannie and Freddie properties with a $375 cap for the season. That was for a tract home style drive only. We had several least week in rural areas, with 400+ ft drives and those were done for far more. Yes, if you can't make money on the job you should bid it. The fact that prices may be fixed has no bearing on you. You are dealing with third party clients who agreed to those contracts, not you.
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post #4 of 15 (permalink) Old 02-18-2014, 07:32 AM
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We are bidding all snow removal now because of the amount of the snow fall.
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post #5 of 15 (permalink) Old 02-18-2014, 08:06 AM
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Are you not doing these properties

every time it snows? The total accumulation for the year shouldn't be a factor. The largest problem I have had with snow removals is getting orders late, and cleaning up two storms for the price of one. With my one national/regional client I trust them enough at this point to just do as needed and get a work order on it after. Even if for some dumb reason I don't get an order on one or two. It's still better than letting it turn to ice. I am also in PA and it's been a great "off-season". By the time I have gotten my route completed it is time to start it all over. When we have gotten those large accumulations, it has been light fluffy snow, with the exception of one storm. Even at $50 a pop, It looks like I'm going to do about 150-200 this month, by myself. That's a pretty good off season invoice. If you are getting orders on properties that have not been touched through several storms, I would certainly negotiate a price.
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post #6 of 15 (permalink) Old 02-18-2014, 08:11 AM
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The ones maybe where vehicles have been pulling onto the driveway for two weeks and packing the stuff down and then it refreezes so neither a blower or shovel will peel it off. Lol.
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post #7 of 15 (permalink) Old 02-18-2014, 08:29 AM
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I just shovel around that crap and salt it. So far it's not been an issue.

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Originally Posted by GTX63 View Post
The ones maybe where vehicles have been pulling onto the driveway for two weeks and packing the stuff down and then it refreezes so neither a blower or shovel will peel it off. Lol.
If you take the pictures just right, no one can tell how thick it is really, and it's been snowing about everyday, so it gets covered up.
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post #8 of 15 (permalink) Old 02-18-2014, 08:45 AM
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definitely not getting any salt put down here. None to be found.even the City cant find more
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post #9 of 15 (permalink) Old 02-18-2014, 10:35 AM
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We are also in PA. Central Pa, and the snow removal has been a big piece of business for us this year. The only issue we have had is non payment issues from AIM your way. All of our other clients (Safeguard, MCS, Five Brother..ect) have been great about working out rates for this thick heavy stuff.
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post #10 of 15 (permalink) Old 02-18-2014, 11:04 AM
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Quote:
Originally Posted by GreenwayLady View Post
. . .So what about 2014??? HUD pays $50 flat rate to clear all snow. ( minus 20% or 25% fee)
NOT allowed to bid for over-allowable amounts? . . .
HUD's allowable is just that. If you can complete the job for that amount, get-er-done! If not, bid it.

We'll complete ANY snow removal for the HUD allowable, as long as the said snow removal can be completed in under about 10-15 minutes, or it is a rural property that we have to travel to, or we need to send a plow truck to do it, or, or, or.......

The price differences you are seeing in over allowable amounts this year are most likely the result of Cost Estimator requirements issued by HUD. It's not always a bad thing to be constrained by RepairBase prices, but sometimes it is. And depending on how far down the food chain you are, there may not be much left by the time you get to the table.

Iíve already told you more than I know.
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