For established landscaping enterprises, the trend to commercial contracts is an optimistic growth outlook.
These larger-scale projects, while certainly attractive, introduce some operational and logistical complexities that are very different from residential projects.
This guide looks at how to adjust to the nuances of commercial landscaping projects and keep them profitable.
What Should Small Business Owners Know About Commercial Landscaping Projects?
Commercial is More Than Just a Bigger Garden
Commercial landscaping is different from residential work, not only in the project scale and extended timelines, but also stakeholder expectations. This means pleasing more people, such as corporate entities, developers, and/or municipalities.
Typical projects are business park peripheries, retail complex frontages, public green infrastructure, and landscaping for new residential developments.
The preliminary phase of site assessments must be even more meticulous and go beyond topographical analysis.
It may need to include geotechnical considerations too, existing utility mapping (gas, water, electrical, communications), as well as access evaluations for heavy plant and material deliveries.
The preliminary phase is the most important, particularly before tender submissions or contractual agreements. Getting the project scope right is more difficult.
Planning and Quoting Commercial Projects
Being profitable in commercial landscaping hinges on project planning and financial forecasting. Detailed work breakdown structures, along with itemised bills of materials and labour unit estimations, are the bread and butter.
Quotations need to account for all direct costs, apportioned overheads, a predetermined profit margin, as well as contingency allocation (typically 10-15%) to buffer against unforeseen site conditions or scope creep (this is more common in commercial projects, too).
Effort should be put into making the proposals professionally structured, so they articulate the full scope of work and phased timelines. Clear costings and the contractor’s specific value proposition play a big role in just winning the contracts themselves, but payment milestones and dispute resolution must also be included.
Mobilising for the Job
Now it’s about execution, and this requires scalable workforce solutions and access to the appropriate mechanisation. While core team expansion is one avenue, it’s not a bad thing to use vetted subcontractors for specialised tasks (e.g., arboriculture, hardscaping) – plus it offers flexibility.
Commercial sites tend to require more powerful and specialized equipment than for residential portfolios. The capital expenditure for purchasing this heavy machinery, be it excavators or loaders, is substantial, not to mention its maintenance and depreciation.
So, for large projects that can vary widely in scale, it can be more economical to hire certain machinery.
For example, if the project requires precision excavation or earthmoving in areas with restricted access, options like mini digger hire from Boels offer well-maintained and task-specific machinery that can be accessed without the long-term financial burden. Overleveraging in the current market of unpredictable interest rates and credit access is not what it used to be.
Cultivating Commercial Success
Commercial landscaping has higher highs and lower lows than for residential. This makes it all the more important to be fully prepared with the scope and site specifics, but to remain agile in your equipment and financing. The opportunities for business and reputational expansion are vast, but it requires professional execution.
