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Old 02-14-2008, 05:22 PM
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wink Another Plant Guarantee Thread

I recently bid a job to a friend of mine who is a GC. Nice landscape job, approx. 75k, w/ about 700 plants. Here's the catch.

I need to provide a 2 year warranty on the plants and the house sits at about 8,000 feet w/ a growing season of 3 months tops. Most of the plants are very compatible to the region, but the bottom line is there is apt to be some death loss due to weather and altitude. The job is too far away for me to provide maintenance, and I really don't care to move in the direction of maintenance either. Total wholesale plant cost is about $12,000.

The question is two fold: How much $ to add for the extra year warranty, and what verbage do I add to the contract to cover myself?

Thanks.
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Old 02-14-2008, 08:18 PM
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What are your loss rates? 1% 5%
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Old 02-14-2008, 11:56 PM
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"warranty does not cover owner neglect, or mortality due to natural causes", ie deer, ice, 9 months of heavy snow, etc. Warranty cost is loss rate plus, and enough labor to make the trip. Maybe 20% or 30% is not out line. Per year.
Since it is your friend, your response might be best that no warranty is given, but you will handle any replacement work at a agreed upon T & M rate. That will minimize his cost and your risk.

You must not warranty that which you do not control, unless you are compensated for the risk.
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Old 02-15-2008, 12:14 AM
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clarification

Quote:
Originally Posted by Green4Me View Post
"warranty does not cover owner neglect, or mortality due to natural causes", ie deer, ice, 9 months of heavy snow, etc. Warranty cost is loss rate plus, and enough labor to make the trip. Maybe 20% or 30% is not out line. Per year.
Since it is your friend, your response might be best that no warranty is given, but you will handle any replacement work at a agreed upon T & M rate. That will minimize his cost and your risk.

You must not warranty that which you do not control, unless you are compensated for the risk.
Sorry guys, I think I need to clarify. Here is the situation more in depth.

My friend is the GC who built the home, no monetary favors are involved, just him passing work along to me as he has in the past. He built the home for a gentlemen who is spec'ing on it. This is a multi-million dollar vacation cabin, which more than likely will be vacant until it is purchased (which is a total unknown, especially these days). The warranty is needed due to the wording of the subdivision covenants, so even though I won't be in control (and up at this place, nobody is ever truly in control except mother nature) I have to decide what I need to be compensated for that risk. At this point I have turned a normal quote in allows for a (1) year warranty on the plants as normal. My friend just recently found out about the 2 year spec there, and essentially has asked me to requote the job accordingly. Hope this helps a tad.
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Old 02-15-2008, 01:11 AM
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Again In order to adjust your contract price I would need to know your loss ratio on plants?
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Old 02-15-2008, 09:12 AM
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Like Paul said,, if you have no idea how many of your plants usually die in a given install, it's going to be a WAG as to how many will die in this situation. From what I understand, nobody will be caring for the landscape until it is occupied, and then it'll only be a few months out of the year (and even with that, I would bet that maintenance will be low on the homeowner's priority list). So you may have to guess at how many of your plants are going to die when nobody gives them a drop of water for three months post-install. 20%? 60%? You might consider calling a watering/maintenance company to see what they'd charge to stop out every few days to water the plantings.

I'm always leery about long-distance projects now, because I've had them where I get a call a year later about 3 problem bricks on a 2,000 sqft install 90 minutes away. Eesh.
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Old 02-15-2008, 09:25 AM
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What type of plants are they asking you to warranty--trees, shrubs, annuals, perennials? What is the extent of the plant material involved? As Paul wants to know, what is your loss ratio? What of that loss ratio is based on factors out of your control--mother nature, human neglect, etc?

Your price adjustment for the warranty needs to be factored in with the known variables that you are aware of. Our standard warranty is 1 year for trees & shrubs, 90 days for tropicals & perennials, 30 days for sod, and no warranty for annuals. Our price mark-up covers the cost of plant replacement plus a % to cover labor and time.

You need to find out exactly what the 2 year warranty is--what exactly are they expecting you to warranty for two years and to what extent is the warranty to cover? If they are just asking for a 2 year warranty, your contract needs to address the parameters of your warranty.
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Old 02-15-2008, 05:36 PM
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As per Paul....LOSS RATIO.? For that specific area and those specific plants.

At an altitude of 8,000 feet I would speculate that you would only want to deal with a designer / architect that is very familiar with that type of specialty landscape. If you're not, find a way to run the plant list and design through someone local to that area (perhaps the one's you'll be purchasing the plants from) that has a lot of experience to figure what kind of loss would be expected. With a realistic loss ratio then price accordingly.
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Old 02-15-2008, 06:00 PM
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A two year guarantee shouldnt be a big deal if you are used to one year. Virtually everything that is going to die will do it in the first year with a few exceptions. Trees planted too deep may linger for two years, and improperly located plants will too.

Here is the verbiage from our plant warantee- Site Structures Landscape Inc. will warranty all plant material. Warranty will begin upon project completion and extend one year. If plant loss occurs during this period, replacements will be provided at no additional cost. Plant replacement will not occur until after June 1st. Loss occurring due to owner neglect, abuse or damage caused by others, or unusual phenomenon or incidents beyond the Contractor’s control are exceptions. Loss due to insufficient watering and/or excess watering will be considered owner neglect. Contractor will be responsible for watering up to project completion date.
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Last edited by site : 02-15-2008 at 06:02 PM. Reason: spelling
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Old 02-16-2008, 10:03 AM
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Landscaping at altitude can have it's challenges with the plants, but there are several that are able to withstand the conditions (with minimal loss). Protecting new plants from wildlife also becomes an issue in the mountains around here, especially if you're in a less developed area. I would definitely make sure the plants are suitable for the elevation and not the perfect food source for animals. Nurseries out here provide this information and usually have printouts for homeowners with the same concerns. We're around 5,400' but can head west for 20 minutes and be above 8,000.' As far as the warranty, I'd suggest replacing at T & M as mentioned above.
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