Hours-Based vs. Performance-Based Landscape Agreements: What’s the Difference?
There are two main types of commercial landscape agreements: hours-based and performance-based. Each type of landscape agreement has its benefits, so it’s important to understand them both. You’ll want to select the landscape agreement that will work best for your commercial property or HOA.
A performance-based landscape agreement centers on the quality of a crew’s work. The idea is that the landscaping will always look it’s best regardless of the hours spent to make that happen. Keep in mind that there is still a minimum number of hours your landscaper will need to meet to have the property looking its best. However, the hours are flexible and change based on seasonality and the needs of the property. This will almost always result is a lower monthly maintenance cost.
With an hours-based agreement, the landscape crew must work a fixed number of hours each week. An hours-based agreement is less flexible. It requires landscape crews to work the same number of hours regardless of need or seasonality.
Pros of Performance-Based Landscape Agreements
Lower Price for Monthly Services
Often, a landscape provider can achieve a lower monthly price because they can control the labor needed for the property. During the winter months, landscape material grows at a slower pace and does not need to be maintained as often. As such, the landscaper can reduce the number of weekly hours. They can pass the monetary savings on to you while still ensuring the property looks beautiful. When locked into a set number of labor hours year-round, it does not allow the landscaper to reduce labor when appropriate and save you, the client, money.
Simplicity and Flexibility
You won’t need to monitor the crew’s hours each day because you can trust that the landscaping will look great no matter what. Most landscapers have an account manager (and sometimes even a field manager, as is the case with Heaviland) that is responsible for the property’s look and crew’s performance. With expertise and input from their team in the field, the landscaper can appropriately modify activity while still performing to the highest standards.
When your landscaper can become more than just another service provider, a relationship will grow based on mutual respect. This gives way to honest, open communication, which is necessary to a successful partnership. It also helps you trust your landscaper and start thinking long-term on improvements for the property, instead of spending time worrying about the hours worked by the maintenance crew each visit.
Pros of Hours-Based Landscape Agreements
Guarantee of Work
For those property managers and community managers who need more assurance that landscape work is getting done, an hourly agreement can be helpful. You’ll know that no matter what, the crew will spend an allotted amount of time working on the property. You won’t have to worry that the landscape crew isn’t putting in the desired amount of time on the property.
Consistency in Schedule
An hours-based landscape agreement can also be helpful because it allows for a consistent schedule. You know that a landscape crew will show up at the same time(s) each week for the same number of hours. This can be helpful if you’re tired to a strict vendor schedule. You may also find it easier to manage the goings-on at the property when a maintenance schedule remains consistent.