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Looking for Creative Ideas

Hey everyone,

I'm looking for creative ways to manage snow and ice removal for a large corporate building. I was tossing around the idea whether I should purchase or lease the necessary equipment or do I hire a contractor instead?

If anybody has any advice or ideas I would really appreciate it!

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Permalink Reply by Calvin Jay Garner SR on June 15, 2010 at 11:53am

Hello Andrew, There are several questions that need to be answered before advice can accurately be given. Some are what is the length of time this service will be needed or specified for. How much snow and bad winter weather is normal for this location. Will the contractor be willing to work with you on an as needed basis if there are times when their service is not needed and so on. What is needed most, ice control or snow removal. If you can give more specifics I will be happy to tell you what my experience has been in the past, Calvin- Evolutionedges

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Permalink Reply by Andrew Thielmann on June 16, 2010 at 2:54pm

Hey Calvin - thanks for the quick reply!

The location I'm talking about is 350 parking spaces with about 1 mile of walkway. There are 20 dock doors. There are 3 main entrances. Currently there are 2 working shifts at this time – but there used to be 3. I Have 2 main guys in maintenance and they used 2 pickup trucks last year – usually only one of them was available at all necessary times. The trucks are ours but at this point they're pretty shot. Do we go to tractors? Buy pickup trucks? What about “pusher plows?”

Do you need more information? Just let me know.

Thanks again Calvin!

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Permalink Reply by John Allin on June 16, 2010 at 4:05pm

If you purchase the equipment, you have to depreciate it and pay for it regardless of the amount of snow received (and, how often the equipment is used). Same for leasing. You're on the hook for the dough no matter what, how much, or how little it snows. Cost justification for this should be problematic - huge expenditure for very little overall return on investment.

Hiring a contractor allows someone else to take the risk associated with such an expenditure. And, a good snow contractor knows how to spread such (monetary) risk over a larger portfolio - thus, you pay for services rendered and not for a capital investment. Not to mention, the expenditures come from different budget areas of your financials.....and, getting a capital expenditure approved is normally more difficult than a maintenance expenditure.

I've found only a very few property managers who can adequately cost justify the capital expense. It's all about numbers.

A secondary consideration is liability. You own the equipment, provide the driver (labor) and materials - you take the hit when (not if - but when) someone falls and files suit. You guys take the hit, even if insurance covers the payout. Eventually, the increase in insurance expenditure outweighs the (mis)percieved "savings" associated with doing the work in-house.

Now - if you like the idea of just staying up for oodles of hours, and potentially days on end - pushing snow only to have people scream and moan about the poor performance (even after two years doing it and having some experience) - go for it.

My advice - leave it to the professionals to do the work, take on the expense, and assume the liability.

John Allin

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Permalink Reply by Calvin Jay Garner SR on June 16, 2010 at 5:04pm

Hello Andrew, I have to agree with John Allin's point of view. You should stay in the position of least accountability on a project like this. There are to many variables when dealing with people and their opinion of good service. Put it on the contractor with paperwork stating the quality of their efforts due to the existing conditions. Just try to agree upon a as needed contract so you are not paying for a service that is not needed due to current weather conditions. Calvin

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Permalink Reply by Andrew Thielmann on June 17, 2010 at 12:37pm

Well thank you John, and thank you Calvin as well!

I can understand your point, and I think I'd be much better off following your advice.

Thanks again guys!

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Permalink Reply by Tammara Asay on November 17, 2010 at 3:35pm

You might want to have something on hand to clean sidewalks when the contractor doesn't get there before your employees do. We use a manual snow plow called the Snow Pusher Plus. it works very well.