Bids
Unless you've chosen to auction your timber, you have the right to evaluate each offer and select the one you want or reject them all if they're unreasonable. If you have done a good job marketing the timber you should have a number of offers to review. Don't be surprised if there is a lot of variation between the offers. This wide range can be due to numerous factors. Some buyers are better equipped to handle certain sized tracts than others. How well their logging operation matches your harvest plans can influence how much they're willing to offer. If the buyer is logging a nearby tract, they may offer more due to reduced transportation costs than a buyer who has to move his logging equipment a great distance. One of the main factors influencing the offers is how well the buyer can market the harvested timber. If you have specialty products that the buyer can resale at high prices, he can offer more than others who planned to resale the timber as low value products like pulpwood.
If money is the only factor and one buyer stands out drastically, then your decision is easy. Otherwise, review all offers and narrow your selections down to the top 2 or 3 buyers. Contact these buyers to let them know you have selected them as finalists and want to learn more about their operation. Notify all unsuccessful bidders as well.
Bidders
Like any other group of professionals, loggers have a wide variety of skills, experience, personalities, attitudes and equipment. As you talk to finalists about your timber harvest, try to match the logger's operation with your forest stand and objectives. Talk to each logger in person to get a feel for their character, reliability, sense of stewardship, and willingness to understand and meet your goals.
Visit a current or recently completed harvesting operation conducted by each logger. If you visit an active logging operation, inspect the equipment, condition of the site, and the overall operation. Items to look for during the on-site visit include: condition of logging equipment and haul trucks, whether workers wear personal protective equipment, how trees excluded from the timber sale are protected, condition of streams and stream crossings, and appearance of skid trails, landings, and haul roads at the conclusion of the logging operation. You'll learn a lot about the expertise of the logger and whether his particular operation would be right for your sale. Remember, a poor logging job or problems with the logger can cost you time and money.
Some questions you should ask the bidders:
- How long have you been in business? How long has your current crew been with you?
- Are you and your employees covered by worker's compensation and liability insurance? What are the dollar limits and what kinds of accidents are covered? Will you provide me with proof of worker's compensation and liability insurance coverage?
- What kinds of equipment do you use? How does it match up with the conditions and requirements of my site?
- Do you handle the entire logging process, or use subcontractors for part of the work? If the latter, how do you ensure that your quality goals are met?
- What types of roads and skid trails do you normally construct? What equipment do you use to build them? How will the skid trails, landings, and haul roads look when you've completed the logging operation?
- Have you and/or your crew completed any kind of logger training or continuing education programs? Are you accredited, certified, or licensed in any way?
- How would you handle a dispute over timber trespass or cutting practices? What options do I have if my property or adjacent property is damaged?
- What Best Management Practices do you normally implement? Which ones would be needed on my forest?
Always ask a bidder for several references from previous clients, and perhaps from mills and woodyards where they most often sell forest products. Buyers worth their salt strive to maintain a reputation for fair dealing and ethical practice. Consider asking the references some of the following questions regarding the logging operation:
- Did the logger fulfill verbal and written obligations for such things as road restoration, fence repair, and cleaning up trash?
- Was the logger willing to listen to your concerns and answer your questions directly?
- Did the logger get the job done efficiently and within the specified time limit? If not, what were the problems?
- Did the logger take pride in his workers and equipment? How about in previous jobs? Was the logger willing to show you any of these?
- Was the logger careful to avoid damaging other trees or structures (gates, fences, culverts, etc.)? If there was damage, did he make appropriate repairs?
- Did the logger seem concerned about environmental matters, such as wildlife habitat, water quality, and visual concerns?
- Did he stop or modify, operations appropriately during wet weather?
- Did the logger communicate well with you? Did the logger explain, for example, any necessary changes in the operation? Was he flexible in responding to your needs?
- In what shape did the logger leave your skid trails, haul roads, and landings?
- Would you use the logger for future timber harvests? Why or why not?
After you have time to consider all things, choose the bidder that you are most comfortable with. Be happy with your final decision and move forward.
