Offering Asphalt Services To Municipal Entities
by KM International
It’s no secret that most municipal entities lack the necessary resources to effectively repair potholes and other asphalt defects. With the growing list of municipal responsibilities, pothole patching is usually low on the priority list and typically goes neglected until it is far too late to offer any real long term repair solutions other than throwing cold patch in the pothole and hoping for the best. Municipalities have always contracted paving, line striping, and crack fill services out to local asphalt contractors specializing in those particular services however pothole patching has always been a service most municipal entities have self-performed. But with the dwindling budgets, a lack of manpower, and higher priority issues municipalities have began to look for outside help for pothole repair services.
Contracting pothole repair services out to local asphalt contractors has several benefits to municipal entities including:
Reduce Overhead Costs: No longer do they need to make the capital investment in equipment and materials.
Free Up Labor Resources: Municipalities have more pressing matters than patching potholes, so by contracting these services out they can allow employees to prioritize other responsibilities.
Quality Repair: Most municipals simply are not set up to patch potholes effectively and efficiently, so often the repairs that are made are a short-term solution to a long-term issue.
Public View: Potholes are one of the most widely publicized and criticized issues municipals face. Every year during the late winter/ early spring season the freeze thaw cycle wreaks havoc on public roadway systems and citizens are quick to point this out. By contracting pothole patching out municipals are guaranteed that those potholes are handled in a timely and effective manner which will eliminate or at least reduce the number of complaints from citizens.
As an asphalt contractor you already have all the necessary equipment, manpower, and most importantly expertise to offer municipal entities a long-term solution to pothole patching. For those contractors who have little or no experience working with local municipals approaching them can be a little intimidating but once you understand the process and meet the key contacts involved it will usually turn into a mutually beneficial long-term relationship. To make it easy KM International has developed a Pavement Maintenance Service Proposal Template that can be used by contractors to market their services to local municipal agencies. The template provides a framework for what municipal are currently doing regarding pothole patching and why it makes sense to contract that out to a local contractor. Additionally, an example pricing structure is included in the template as a reference. The template addresses the who, what, when, where, and why very clearly and acts as a framework for a potential future contract between your company and the municipality.
If/when a municipality decides that it makes sense to subcontract out their pothole patching services, they will normally go about it in one of two ways. If it is a larger municipality, they will usually go out to public bid where they create a set of specifications and solicit bids from local contractors. A contract will usually be awarded to the lowest priced bidder. In a bid scenario there will normally be either a maximum dollar amount for the contract or a maximum quantity (tons, sq.ft., etc.).
An example of a municipal bid solicitation can be found here.
Alternatively, some municipals can forgo the bid process if the contract value is under a certain dollar limit. In a situation like this you aren’t necessarily competing on price against other contractors but still have to be price conscious of the municipalities’ price limitations.
Municipal contracts can be extremely lucrative for asphalt contractors especially for those looking for “winter work” and wanting to avoid laying off employees. And if done satisfactorily these contracts can be extended for several years all while creating a relationship with the municipality and being their first call for additional asphalt work.
