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  Eugene Baston December 3, 2013 at 10:03pm

  Show VFM over the longer duration - although obviously your costs are more manageable and you are better off with three years anyway? Present the win and take the win.

  I'm suggesting going for the big cheese rather than a piecemeal basis where you are always working to 'price tarting'.

  Cheers, Eugene
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  Kieran Ray December 3, 2013 at 11:19pm

  increase the price by 10% each year too, dont hold a price for 3 years.
• PRO

  Brian www.mibservices.co.uk December 4, 2013 at 2:31am

  30% mark up over three years seems a tad rich to me. If its a high value commercial contract and they are offering a three year deal on it without them going out to tender over that period you will normally find you will have to give a fixed cost for the three years.Sounds like a housing association contract or such like ??. They will require you to submit a fixed price for the 3 year term, so work out your costing very carefully for year one, add 3-5% for year two and the same calculations again for year 3. Bare in mind, the weighting is usually high for the cost side of these tenders, as in cheapest price, and the rest of the weighting points is spread out over experience, manpower, resources, company financials etc etc.
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  Colin Hunt December 4, 2013 at 6:29am

  This is 2013, I reckon you would be very lucky to show and get a 10% per year increase accepted. I simply work out the cost for 1 year, add a modest increase for years 2 and 3 year and quote as a 3 year lump sum, broken down to 3 equal, annual amounts to be paid on monthly invoice.
  
  Kieran Ray said:

  increase the price by 10% each year too, dont hold a price for 3 years.
• PRO

  Gary RK December 4, 2013 at 6:49am

  Also quote your price ex-VAT - whether you are VAT reg or not. A change in VAT rate on a price quoted as £xxx.xx inc VAT will leave you very exposed (or include a "rider").

  Also leave yourself a "rider" to increase fuel costs or be able to add a fuel surcharge if fuel rises above rate of inflation etc (may not be an issue for a small local contract....).
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  Kieran Ray December 4, 2013 at 9:53pm

  Unless we know the competition is really tight we always add 10% and win most contracts. Most of our stuff is parish council though.
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  Colin Hunt December 5, 2013 at 5:29am

  Think that explains it the Kieran.
  
  Kieran Ray said:

  Unless we know the competition is really tight we always add 10% and win most contracts. Most of our stuff is parish council though.