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Thursday, April 17, 2014

Question

I'm in the process of preparing my first bid and I'm unsure of the pricing. They want a crew for overnight cleaning. The days are Sunday through Thursday from 6 pm until no later than 1 am. I also would like a separate bid for a day porter, Monday through Friday 7 am until 4 pm. The day porter should also be able to perform light maintenance duties. How much should I charge them? The current cleanable square footage is 78,577.15 total for both buildings.


Answer

Not much to go on here.
If you can clean at the rate of (just an example) 2250 sq. ft. per hour, you will need about 35 man-hours fitted into 7 hours a night. Figure that you will need 5 cleaners (7x5=35). Add your labor rate (including burden), say $10 per hour, and you need to charge $350 a night to break even on the manpower. $1750 per week.
The day person will cost 8 hours a day times 5 days x $10 per hour = $400 for the week.
Now, your labor is up to $2150 a week.
If you add in supply costs, management expenses, insurance, profit, overhead, etc. you may have another $600 a week. Total cost is up to $2750 per week.
Remember, this is only an example, and these figures may be way off from reality. Can you work faster with more productive equipment and cut the hours needed? Is your labor rate higher or lower than the example? How much profit do you want? What are your true overhead and insurance expenses?
I canít be of much more help without extensive survey knowledge of both buildings and your business structure.
May I suggest some personal study on Bidding & Estimating using available consultantsí materials?

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