Lesson 8Lesson 8

Pricing the Landscape PlanPricing the Landscape Plan

Next Generation Science/Common Cores Standards Next Generation Science/Common Cores Standards Addressed!Addressed!

CCSS.Math.Content.7.R P.A.3 Use proportional relationships to solve CCSS.Math.Content.7.R P.A.3 Use proportional relationships to solve multistep ratio and percent problems. Examples: simple interest, tax, multistep ratio and percent problems. Examples: simple interest, tax, markups and markdowns, gratuities and commissions, fees, percent markups and markdowns, gratuities and commissions, fees, percent increase and decrease, percent error.increase and decrease, percent error.

Bell Work / Student Learning Bell Work / Student Learning ObjectivesObjectives

1. Identify the difference between an 1. Identify the difference between an estimate and a bid.estimate and a bid.

2. Describe landscape specifications.2. Describe landscape specifications. 3. Prepare a cost estimate for the 3. Prepare a cost estimate for the

landscape plan.landscape plan.

TermsTerms

BidBid Contingency costsContingency costs Cost EstimateCost Estimate EstimateEstimate Overhead CostsOverhead Costs ProfitProfit SpecificationsSpecifications

Interest approachInterest approach

Begin the lesson by having the Begin the lesson by having the students view a finished landscape students view a finished landscape plan. plan.

Ask the students to decide how Ask the students to decide how much it would cost to install the much it would cost to install the plan. Begin a discussion on what plan. Begin a discussion on what factors would be used to factors would be used to determine the price of the plan.determine the price of the plan.

Objective 1: Objective 1: Identify the Identify the difference between an difference between an

estimate and a bid.estimate and a bid.

What is the difference between an What is the difference between an estimate and a bid?estimate and a bid?

I. Discussing the price of I. Discussing the price of installing the plan.installing the plan.

A. An estimateA. An estimate– initial price that is presented to the customers initial price that is presented to the customers – an approximate cost for the work to be done.an approximate cost for the work to be done.– includes the cost of materials and labor.includes the cost of materials and labor.

B. A bidB. A bid– given when more than one company is given when more than one company is

competing for a client’s business. competing for a client’s business. – a fixed price placed on the landscape work to a fixed price placed on the landscape work to

be done. be done.

Objective 2: Objective 2: Describe Describe landscape specifications.landscape specifications.

What are landscape What are landscape specifications?specifications?

II. Details of a designII. Details of a design

A. Landscape A. Landscape specificationsspecifications– a list of all the details needed to install the a list of all the details needed to install the

landscape plan accurately. landscape plan accurately. Some of the specifications that must be provided Some of the specifications that must be provided

are the size and number of plants, the types of are the size and number of plants, the types of paving materials, the instructions for installing paving materials, the instructions for installing decks, amending soil, and applying mulch. decks, amending soil, and applying mulch.

– The more detailed the specification sheet, The more detailed the specification sheet, the more accurate the landscape.the more accurate the landscape.

Objective 3: Objective 3: Prepare a Prepare a cost estimate for the cost estimate for the

landscape plan.landscape plan.

How do I prepare a cost estimate How do I prepare a cost estimate for a landscape plan?for a landscape plan?

III. Cost EstimateIII. Cost Estimate A written statement of the costs of A written statement of the costs of

installing a landscape plan. installing a landscape plan. It would include the descriptions, It would include the descriptions,

numbers, and costs of all the plant numbers, and costs of all the plant materials and construction materials.materials and construction materials.

In addition to these details, the cost In addition to these details, the cost estimate would also include the estimate would also include the overhead costs, contingency costs, overhead costs, contingency costs, labor, and profit.labor, and profit.

A. Overhead costsA. Overhead costs

The costs of operating the business. The costs of operating the business. These would include the utilities (and These would include the utilities (and

any maintenance of equipment.any maintenance of equipment. Overhead costs are usually calculated Overhead costs are usually calculated

at 20 percent of the material and labor at 20 percent of the material and labor cost.cost.

B. Contingency costsB. Contingency costs

Added to all plans as insurance against Added to all plans as insurance against unforeseen problems. unforeseen problems.

Contingency costs would vary from one Contingency costs would vary from one firm to the next but are usually around firm to the next but are usually around 10 percent of the material and labor 10 percent of the material and labor costs.costs.

C. ProfitC. Profit

The money left after all the costs of the The money left after all the costs of the operation is complete. operation is complete.

A markup of 20% should be included in A markup of 20% should be included in the cost estimate for profit.the cost estimate for profit.

ReviewReview

Usually a customer will want to know Usually a customer will want to know how much the project will cost before how much the project will cost before they begin the landscaping process. In they begin the landscaping process. In order to give an estimate you need to order to give an estimate you need to determine the products and services determine the products and services that will be needed and determine that will be needed and determine their individual cost. Contingency costs their individual cost. Contingency costs may need to be estimated to cover may need to be estimated to cover unexpected events.unexpected events.

EvaluationEvaluation

1. How is a bid different from an 1. How is a bid different from an estimate?estimate?

2. List four things found on a cost 2. List four things found on a cost estimate.estimate.

3. What is a contingency cost?3. What is a contingency cost? 4. At what percent are overhead 4. At what percent are overhead

costs usually calculated at?costs usually calculated at?

The End!The End!