Lesson 8 Pricing the Landscape Plan

Next Generation Science/Common Cores Standards Addressed! n CCSS.Math.Content.7.R P.A.3 Use proportional relationships to solve multistep ratio and percent problems. Examples: simple interest, tax, markups and markdowns, gratuities and commissions, fees, percent increase and decrease, percent error.

Bell Work / Student Learning Objectives n 1. Identify the difference between an estimate and a bid. n 2. Describe landscape specifications. n 3. Prepare a cost estimate for the landscape plan.

Terms n Bid n Contingency costs n Cost Estimate n Estimate n Overhead Costs n Profit n Specifications

Interest approach Begin the lesson by having the students view a finished landscape plan. Begin the lesson by having the students view a finished landscape plan. Ask the students to decide how much it would cost to install the plan. Begin a discussion on what factors would be used to determine the price of the plan. Ask the students to decide how much it would cost to install the plan. Begin a discussion on what factors would be used to determine the price of the plan.

Objective 1: Identify the difference between an estimate and a bid. What is the difference between an estimate and a bid?

I. Discussing the price of installing the plan. n A. An estimate –initial price that is presented to the customers –an approximate cost for the work to be done. – includes the cost of materials and labor. n B. A bid –given when more than one company is competing for a client’s business. –a fixed price placed on the landscape work to be done.

Objective 2: Describe landscape specifications. What are landscape specifications?

II. Details of a design n A. Landscape specifications –a list of all the details needed to install the landscape plan accurately. n Some of the specifications that must be provided are the size and number of plants, the types of paving materials, the instructions for installing decks, amending soil, and applying mulch. –The more detailed the specification sheet, the more accurate the landscape.

Objective 3: Prepare a cost estimate for the landscape plan. How do I prepare a cost estimate for a landscape plan?

III. Cost Estimate n A written statement of the costs of installing a landscape plan. n It would include the descriptions, numbers, and costs of all the plant materials and construction materials. n In addition to these details, the cost estimate would also include the overhead costs, contingency costs, labor, and profit.

A. Overhead costs n The costs of operating the business. n These would include the utilities (and any maintenance of equipment. n Overhead costs are usually calculated at 20 percent of the material and labor cost.

B. Contingency costs n Added to all plans as insurance against unforeseen problems. n Contingency costs would vary from one firm to the next but are usually around 10 percent of the material and labor costs.

C. Profit n The money left after all the costs of the operation is complete. n A markup of 20% should be included in the cost estimate for profit.

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

Evaluation 1. How is a bid different from an estimate? 1. How is a bid different from an estimate? 2. List four things found on a cost estimate. 2. List four things found on a cost estimate. 3. What is a contingency cost? 3. What is a contingency cost? 4. At what percent are overhead costs usually calculated at? 4. At what percent are overhead costs usually calculated at?

The End!