Snow & Ice: A Property Manager's Perspective
EDITOR’S NOTE: This year, Snow Business is partnering with property managers who will give insight into their snow & ice management decision-making process. Each issue will focus on a different niche or market. Snow may be snow, but each client has different challenges he or she faces in managing this very costly aspect of the budget.
Joesph Conlon, CPM, PCAM, President, Diamond Realty Management AAMC
Snow Business: When planning for snow & ice management, what services are you seeking?
Joseph Conlon: Property managers for residential condominium and homeowner association communities seek to provide snow & ice management services in accordance with their management mandates, which can be categorized into two general groups:
Urban. Relatively higher service level for building entryway, sidewalks and parking lots with a special focus on parking garage entry areas (if present). Typical service threshold generally is 1-in. to 2-in. or less, most regularly including ice management.
Traditional suburban. Cost-effective service level for driveways, walkways and sidewalks where they exist. Typical service threshold in the Northeast is 2-in. Service levels are prescribed in the development’s governing documents and will generally clarify to the extent that ice management is provided, if at all.
SB: How do you qualify snow & ice management contractors?
JC: A skilled property manager will employ traditional service provider screening and qualification procedures, to include:
Experience. Does the vendor have relevant experience in which services are being sought? The size of the contract scope will dictate the degree of relevant experience required. Property managers may opt to give a promising, though less than seasoned, vendor a try on a small or medium property, but larger contracts will dictate the need for a proven performer.
Equipment. Does the vendor have the necessary equipment, including backup, to service the property? For some properties, a simple front-mounted plow and snowblower will do the job, which opens up the universe of prospective bidders. Developments that have specific equipment needs will limit the range of providers who can deliver the most effective job completion.
Staff. Does the vendor have the depth of staff to service the property? Is there a lot of handwork needed for walkways, sidewalks and garage doors, or is the scope primarily or solely limited to plow truck operations? Does the vendor have access to a depth of labor to tackle a marathon 72-hour Nor’easter? Is that labor force supplied via in-house personnel or is it composed of the extended family of friends and brothers-in-law, or even worse, less-than-productive temporary agency help?
Professional specialist. Is the vendor a snow & ice management professional who knows his business or a firm that mounts a few plows to fill the off-season low? Membership in SIMA is a clear sign to a property manager that a contractor takes his or her business seriously. Does the vendor:
- Employ advanced weather tracking technologies and actively monitor forecasts throughout the season?
- Employ GPS tracking to monitor equipment location and staff production?
- Communicate with the customer, providing regular updates?
- Promptly respond to service inquiries and problems?
Track record of success. The larger and more demanding the service scope will proportionally dictate the need to secure services from contractors with a track record of success either with the firm seeking services or with other verifiable sources. In every industry and service sector there are proven winners who shine above their peers regardless of the circumstances. Property managers and others will seek out these leaders in all service categories, though most aggressively in snow & ice management since the repercussion of failure is greater and more troublesome.
SB: How do you purchase snow & ice management services? What works well? What could improve? How could the snow professional improve the process?
JC: Snow & ice management services are purchased in generally one of two manners:
Formal bidding process. The property manager establishes detailed bid specifications consisting of standard form language with service levels customized to each property to the extent required. More refined specifications will include specific equipment and personnel requirements as well as service time completion targets. The property manager will identify prospective and qualified bidders from his pool of candidates, knowing that all are not equal, and request returned bids by a specified due date.
This formal process is helpful to achieve price competitiveness and identify market costs and while not necessarily simplified, streamlines the process when considering multiple vendor options.
“Vendor-property matching.” Sometimes the best we can do for our clients is to secure services from the most capable vendor at a competitive cost. In an established community, in which we already possess information from prior bids and past service contracts, a property manager can readily determine a competitive market cost and use that information when comparing contracts. Whether it be a desire to simply provide a higher service level, match a proven contractor with another property in close proximity to existing clients or select a contractor with superior equipment, the art of “vendor-property matching” provides superior results when correctly performed.
If bidding on a property, ask the property manager about service goals, budget and why the contract is out for bid.
SB: What is your view of the industry and its members?
JC: Any property manager who is in a market where snow & ice accumulation is an active winter occurrence can attest to the challenges and troubles confronting service providers. Complications from fluctuating weather patterns, equipment problems and unrealistic customer expectations make a difficult industry even more problematic. Compared with other service categories, such as lawn and grounds maintenance, the margin of error is reduced from days and week to hours and minutes. For these reasons and more, we find a smaller pool of top-performing providers than in other service categories.
All service sectors undergo an evolutionary process. The snow & ice management industry is arguably not as far advanced as other service sectors, which is not so much a problem, but rather an opportunity for growth and evolution for the industry at large and leading firms willing to be at the forefront of it.
Certainly ensuring trucks have signage and employees wear company apparel contributes to projecting a professional image; most importantly, however, property managers seek firms that provide solid service performance, superior communications with clients, and employ leading equipment and technologies. Firms that understand and can deliver this are poised to grow their business in good and bad economic conditions.
SB: What are the drivers that impact the HOA/condo association buying process?
JC: It’s accurate to say that essentially all large contract expenses are budget driven. Unless you are working with the developer’s representative at the beginning of a new construction community, all associations are working from prior budget history. In a well-established community that figure should represent the reasonable fair market value of the services. In a newer or poorly managed community, fair market value may not have been accurately defined.
If bidding on a property, ask the property manager what their goals are for service; what their budget target is; and why the contract is out for bid.
There are a host of reasons why a project may be out to bid. Some common examples are below matched with a possible bid strategy:
- Prior vendor services were inadequate = Focus on quality service delivery at market competitive rate.
- Prior quality vendor discontinues services = Match existing quality services and cost.
- Vendor quality acceptable but contract bid is expiring = Target to match or beat existing service quality and cost.
- Community politics (i.e. board director has a son-in-law in the business) = Yes, this happens too frequently. Put your head down, make your best bid and good luck!
The community association industry remains competitive with a keen eye on pricing. Capitalizing on opportunities means hitting the mark consistently by delivering a quality service in a cost-competitive manner while realizing a profit in the process.
SB: What else should contractors be aware of in the bidding process?
JC: A well-drafted RFP or contract should specify important service criteria such as accumulation threshold, service start time frame, equipment and staffing needs, deicing material requirements, priority service requirements, expectations on moved vehicle clearing and communications with client, etc.
While service delivery is generally set forth in a quality contract, vendors should be clear whether they have free rein to provide services within the scope of the contract terms or if a “snow watcher” needs to pull the trigger before operations can start. Recognize that not all contracts are well written, so understand all relevant service needs and make sure they are in writing. When clarification is needed, inquire with the project manager to get a clear understanding of the client’s expectations.
Joseph Conlon, CPM, PCAM is president of Diamond Realty Management AAMC, a nationally accredited firm based in Albany, NY, servicing 70 multifamily communities comprising 6,000 homes. Questions and comments are welcome at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Photos courtesty of Joseph Conlon.
