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Sunday, April 20, 2014

Question

I've been offered to bid a commercial cleaning contract for a 60,000 sq. ft. private school (Lower school and High school) with 250 kids total. The school will provide the cleaning products I'll supply labor and equipment. The Facility Manager has hinted that the job should take 25-30 man hours per night (M-F). What should I charge monthly ? It is outside of the city and considered the suburbs. They also have carpet cleaning and strip/refinishing done, but that is another issue and I'll deal with that later.


Answer

Using a production rate of 2000 sq. ft. per hour, the 30 man-hour figure seems possible, but that may be improved upon by using more productive equipment and/or procedures.
The key is to determine exactly what you will need to do and what you will use to do it.
The hourly rate you charge will depend on your labor and supervision costs, equipment expenses, overhead, travel costs, desired profit. Calculate these and then do the math.
30 man-hours a night times $35 (example only) equals $1050 a night. Times
5 nights is $5250 a week. 52 weeks a year times $5250 equals an annual contract of $273,000 or $22,750 a month during those months the school is open and your services are required.
You will want to keep your price as low as you can, but don't shortchange yourself so that you cannot afford to do what is promised.

Lynn E. Krafft, ICAN/ATEX Editor
lekrafft@juno.com