Have you ever received bids for deck coatings that you need to sort through for the Board meeting coming up? The Board would like you to analyze their bids; and you don't have the slightest idea of the differences in the deck coatings that are listed on the bids. Neither do you know what they should cost, how they should be put down, their strengths and weakness' and just how are you going to determine which bid is actually the most complete and thorough bid? For more information about reviewing bids and bid analysis, read our article "Deck Coatings and Their Care."
DeckExpert.com can help! As an estimator for several waterproofing companies that applied deck coatings, combined with my experience as an HOA manager, I have a unique outlook on reviewing bids that will help your Association determine the best bid product wise for the money you have budgeted. Our "Total Cost of Ownership" analyzer will show you what the Associations true cost of ownership will be, based on the initial purchase price of your decking system, the resealing schedules, anticipated wear and tear maintenance costs and other items that we factor into our calculations.
We also review your bids to help ensure that they are what they appear to be. The example below of a "Desert Flex Material & Labor Contract" revealed, upon closer examination, several deficiencies. The average person, reading through might accept this contract even though several key components in the installation process of the Desert Flex system's materials are murky or left out.
Reviewing this bid/contract to the right, at first glance, the contract appears fine. They're saying they will put in the Desert Flex system, there's 72 decks with 7180 square feet to cover and they are going to charge you $31,250.00 to do it. That equals $4.35 per square foot on a "raw" basis. Raw meaning that the base coating cost is unknown, there is probably set up and clean up time accounted for in the bid price, driving time, gas costs, overhead and a profit margin.
The contractor who got this bid received an "apples to apples" bid from a company I was an estimator for. The contractor called me after getting my estimate (we had a strong working relationship) to say he was giving the bid to another contractor because I was "way higher" than the other bidder. Our conversation about the job and his bids led to him sending me a copy of the other bid to review, blacked out so I couldn't see who it was. The contractors estimator was an experienced guy and he had some doubt in his mind about the pricing, something just wasn't right to him...
I looked at this bid and the low cost quoted was a tip that something couldn't be right. I discovered that the specifications written in this scope of work differed from the manufacturer's specifications. Specifically they were leaving out two steps and the language was vague as to whether they were going to apply two coats of pigmented sealer as specified or just one.
Redoing my estimate, by leaving out the same steps they were and applying only one coat of sealer, my estimate was able to come within a thousand dollars of their bid. This company was not asked to re-bid the job and I understand they won't be asked to bid ever again for that contractors work. Cheaters shouldn't win, but sometimes they do.
The lesson is to have experienced eyes review your contracts and specifications regarding the application of the product and to watch the contractor when they are doing the installation. Please note, we are not an attorney and we are not able to give legal advice about your contract's clauses. Consult your attorney before signing any document.
Key Benefits to Having Us Perform Your Bid Analysis
- Bid analysis can help find the best deal on the coatings you are considering, saving money on initial purchase costs, to saving money on the reserve costs. Ensure that the documents match what the specifications say; cross referencing is essential!
- Relying on professional advice meets the business judgment rule for making decisions on which you have little knowledge of.
- Warranties are played up quite a bit in the waterproofing industry. Ten year warranties sound pretty good, but what they don't tell you is you have to pay them every two to three years to reseal the decks to keep that warranty valid. An expensive proposition that takes money unnecessarily out of your pocket! A straight five year warranty with no resealing work required might be a better deal. We can help you figure out what works best for your HOA, not what works best for the contractor.
- Reserve study firms can use our expertise to provide their Association clients with the best information possible, plus we can provide maintenance information and precise resealing schedules when the manufacturer is known. Your reserve study recommendations that enables an Association to be able to keep dues increases for the reserve components to a minimum has a higher value to it over your competition's reserve studies.
- Builders, developers, HOA managers and others can get unbiased opinions on the various coating choices they may be presented with, combined with custom models based on our "Total Cost of Ownership" analyzer.
Our Capabilities that Benefit You!
- Capability 1
We know all the different types of deck coatings; and can show you their strengths and weaknesses; saving you surprises after you've bought. Caveat emptor is a fact in the waterproof decking business. Don't get caught without an advocate on your side. - Capability 2
We know what something should cost and will tell you if the contractor is within a reasonable price range (hey they need to make a profit to be able to stay in business and service you) for what they're proposing to do. - Capability 3
We have a broad range of experience in waterproof decking and can help ensure a quality job with on-site inspections after the job is started, giving the Association an independent evaluation from someone on their side.
A Sample of HOA's and Their Results
Please note, your results may differ from these examples. Savings based on different coatings being compared, these were not "apples to apples" bids.
- Fair Oaks Condominiums HOA Sunnyvale CA
Fair Oaks was due to replace their deck coating system. Two bidders had been procured to provide bids to do so. One of two products specified had a installation cost difference of $30,000.00 less than the other product. The Boards inclination was to take the lower bid and save $30,000.00 in lower initial cost. Our final analysis showed though that despite the higher initial cost, the second coating, over 30 years, would save the Association over $100,000.00 in reserve costs as it had a longer maintenance schedule. The longer schedule saved the Association money and aggravation to their residents. - Camarillo Miramonte HOA Camarillo CA
Camarillo Miramonte's pool deck needed to be redone. Cracks in the original concrete surface, spalling and chemical stains on the upscale community's pool deck dictated that it needed to be resurfaced. The Pool Committee, recognizing that any surface put on, would require maintenance services as part of the investment. They needed help in determining which of the three polymer modified cement pool deck finishes had a good warranty and low costs for maintenance. Through my "Total Cost of Ownership" analyzer, they were able to mathematically see their projected ownership costs of each, and was able to select a pool deck coating product that would cost them the least amount over the 20 year anticipated lifespan. Estimated dollars saved-$28,000.00 in reserve costs. - River Ranch HOA Santa Maria CA
River Ranch HOA was doing an entire redo of their buildings, including repairs and replacement of the decks. The contractor was bidding for decking, specifying a slip sheet system. Bids were reviewed and found to not be the specified coating. The analysis of the various coatings showed one to be superior than the others for the Associations "Total Cost Of Ownership". The projected reserve savings over the specified coating is apx. $130,000.00 over 30 years time.
Contact us for more information or to arrange a bid analysis for your HOA!
