3 Reasons to Break Into Municipal Work

3 Reasons to Break Into Municipal Work
Municipal bids should include everything. Project details will be listed in the township’s specifications, but you need to include any extra costs associated with disposal requirements from cleaning waste, abnormal hours such as night work, water supply costs for cleaning operations and even traffic control on secondary streets and highways. (Photo by Peter Krupp)

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Municipal work can be intimidating for the uninitiated. Fears of additional paperwork, personnel training and equipment upgrades prevent some drain cleaning contractors from entering the market. However, public-sector work can hold valuable opportunities for your business. 

Tom Mullen, owner of North American Pipeline Services in Freehold, N.J., shares his top reasons for entering the municipal sector and offers a few tips on how to break into the business. 

1. Money in the bank

Payment assurance is the biggest benefit of municipal contracts, says Mullen. However, that doesn’t mean there aren’t risks. As part of the bidding process, a pipe cleaning business must be certified with a bonding company, which acts as an insurance policy for the municipality. Also, just because you’re guaranteed payment doesn’t mean you get it right away. 

“The payment period is a longer process from the day you do work to when you have payment in hand,” Mullen says. “Depending on the size of the project, the township allows progressive payments of actual work completed and accepted by township officials.” 

In Mullen’s experience, payment time ranges from 40 to 60 days from the time the work is completed to when he has a check in hand. 

Therefore, it’s important to consider carrying costs when placing a bid. Structure bids so you’re comfortable with all expenses, and remember that depending on project size, you might lock your equipment and personnel into a job for a considerable time period. 

Contract lengths vary depending on the size of the project. Mullen says his company’s first municipal project, which involved cleaning and inspecting 94,000 feet of sanitary sewers in the Mount Laurel Township, took 40 days. His team cleaned pipe during the day and used video at night to take advantage of light vehicle traffic and lower sewage levels in the evening hours. Pipe sizes ranged from 8 to 24 inches. 

“We had a great experience working with the town,” he says. “The coordination with the township made it so much easier.” 

2. Fair competition

A municipal contract also levels the playing field for businesses. In the private sector, jobs are often based on performance and prior relationships, which gives larger companies a distinct advantage. In municipal work, jobs are often awarded to the lowest bidder, which means you and your competitors start at the same point. 

The important part is making sure your bid is well researched. 

“Do your homework,” Mullen advises. “Review all aspects to make sure you’re covering all of the basis. You need to do your due diligence. At the end of the day, you’ve got to make sure you’re comfortable with your bid.” 

Your bid should include everything. Project details will be listed in the township’s specifications, but you need to include any extra costs associated with disposal requirements from cleaning waste, abnormal hours such as night work, water supply costs for cleaning operations and even traffic control on secondary streets and highways. Also, before submitting a bid, visit the job site to determine accessibility and to assess the condition of the pipes. 

And when a job is closer to your home base, Mullen’s advice is to bid more aggressively. 

“Travel costs are sort of an issue,” he says. “Having that travel time adds up, so you need to make sure you include it in the bidding factor.” 

3. Expansion, expansion, expansion

And finally, Mullen acknowledges the high visibility of public-sector work has its advantages. With municipal work, your trucks and equipment are usually along high-profile areas like highways, which means more eyes on your business brand. Also, once you win a contract, your business will expand its clientele base, and you might even pick up additional public-sector projects that aren’t large enough to require bids.   

Townships sometimes share information about contractors with each other, so once you’ve established yourself as a trusted partner, you’re well on the road to expanding your business into municipal contracts. 

Municipal work involves preparation and some legwork. For example, Mullen upgraded some trucks and made sure his video technicians were NASSCO-certified. The paperwork can often seem a deterrent, but for companies looking to grow, municipal work could very well be an open door. 

“Instead of just sitting there, waiting for the phone to ring based on past relationships, we’re trying to grow our relationships to a bigger, broader customer base,” he says. 

Check out a full-length profile on North American Pipeline in the August 2013 issue of Cleaner.

Have you expanded your drain cleaning business into the municipal sector? What factors played a role in your decision? Leave a comment below.



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