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Memo 1098 Bids for Tarping Roofs 11/12/04

To: All SPI Contractors
From: Robert Klein
Memo 1098 Bids for Tarping Roofs

As you know, Safeguard has issued previous memos regarding inconsistent and excessive bids.  With the implementation of the new HUD M&M contracts, it is imperative that we make sure the bids we submit are fair and consistent. 

This becomes is even more important when the bid in question relates to work that will prevent further damage to the home.  If the M&M contractor can justify that a delay in completing work necessary to prevent further damages was due to a inaccurate or excessive bid, they may be able to hold our client responsible for any damage that occurred.  If this occurs the client will hold Safeguard and its contractor responsible for the cost to fix the damage.   Losses of this kind should not occur and can be avoided if we assure that we submit reasonable and appropriate bids. 

Over the past several months we been monitoring bids to tarp roofs.  What we found indicates that there is no consistency in how roof-tarping is bid.   Bids for the same work on the same property have varied by hundreds to thousands of dollars.  In almost every case where such discrepancies were found, the conflicting bids resulted in significant delays in bid approval, and in some cases resulted in additional damage that had to be repaired at no charge . 

To prevent losses of this kind from occurring in the future, we have developed a chart that shows the maximum bid that will be allowed ( click here to view chart ).  The chart contains the following limits for standard tarping jobs:
0-200 sqft (10'-20' tarp) 201-500 sqft Over 500 sqft
One-story home Up to $ 250.00 Up to $ 500.00 Up to $ 750.00
Two-story home Up to $ 300.00 Up to $ 500.00 Up to $ 750.00
Three-story home Up to $ 500.00 Up to $ 600.00 Up to $ 1000.00
The figures on the chart are based on a poll we conducted, asking a number of contractors across the country to give actual costs to tarp roofs.  The pricing is based on a typical composition or asphalt shingle roof with a 4/12 pitch or less.  Consideration was given to one-, two-, and three-story buildings and the size of the area to be tarped.   We also incorporated the average cost of a bundle of furring strips, tarps of various sizes, and labor.    The cost allowables set forth on this chart are reasonable and do take into consideration our contractors' profit and overhead.

All bids and work completed still need to be supported with photos and a full description of the work required.

Bids in excess of these amounts will not be accepted, except in extraordinary circumstances .  We do understand that there will occasionally be extreme situations where the bid may exceed the maximum cost set forth on this chart, and in these cases, we will require detailed bids that list the time and materials to complete the work.  Simply indicating the pitch is greater than 4/12 or its a slate roof will not be sufficient to warrant exceeding these limits: you must list actual material and labor costs to justify the a bid over the maximums listed.

If you have any questions about these new bidding guidelines, please contact High Risk Manager Steve.Meyer@safeguardproperties.com .

We thank you for your continued cooperation and encourage you to contact us with any questions about this memo or any other standard of work issue.

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