Starting your post-construction cleanup business doesn’t need to be overwhelming, especially when it comes to pricing. This guide provides clear, straightforward strategies to help you set competitive prices and win contracts.
1. Determining Costs and Workforce Needs
For accurate pricing, understanding your labor costs and workforce requirements is key:
- Typical Cleanup Shift: Standard shifts are eight hours, usually requiring a team of four workers.
- Labor Costs:
- Each worker typically earns $25 per hour.
- The total labor cost for a day ranges from $750 to $1,200, depending on the specific demands of the project.
2. Setting Your Pricing for Projects
To ensure your pricing aligns with market rates, make use of a post-construction cleanup pricing calculator. This will help you adjust costs based on the project’s specifics.
- Base Rates: A good starting point is $0.25 per square foot for most jobs.
- Special Conditions: Adjust your rate if:
- The job requires union labor.
- You need to account for Davis Bacon Prevailing Wage rates.
3. Creating Professional Proposals
After determining your prices, you’ll need to present them in a clear and professional way. Use ready-made proposal templates to structure your pricing and make a strong impression on potential clients.
4. Industry Pricing Trends
To give you a better sense of where your pricing fits in the market, consider these statistics:
- 66% of jobs cost less than $5,000.
- 16% of jobs fall within the $5,000 to $10,000 range.
- 80% of jobs are under $10,000, with the average project costing about $7,300.
- High-value projects exceeding $20,000 make up only 3% of all jobs.
5. Strategies for Securing More Projects
To increase your chances of winning contracts:
- Competitive Pricing: Keep your rates in line with market standards while ensuring profitability.
- Expand Your Reach: Offering services in multiple regions increases your chances of landing more jobs.
6. Post-Cleanup Invoicing
After the final cleanup is completed, make sure to invoice your client promptly. A clean, well-organized invoice helps speed up payment processing.
- Tip: Use pre-designed invoice templates to simplify billing.
Important Questions to Ask During a Post-Construction Site Visit
Visiting the job site and meeting with the superintendent is a critical step in securing a post-construction cleaning contract. Here’s a list of key questions to ask during your site visit.
Engaging the Superintendent
- Introduction: Meeting with the superintendent will give you the opportunity to build rapport and clarify project details. This person will be your main point of contact throughout the project.
- Clarification: If both a project manager and a superintendent are involved, ensure you mention that you are confirming the scope based on the project manager’s instructions.
Crucial Questions for the Site Visit
Scope and Competition
- How many cleaning companies are bidding for this contract?
- What is the expected timeline for the cleaning process?
- How many workers will be required on-site?
Scheduling and Coordination
- What are the working hours? Will we be working day or night shifts?
- Will our work coincide with other trades, such as painting crews?
Budget and Bid Requirements
- Is there a set budget for the cleaning services?
- What would be considered a competitive bid for this job?
Specific Cleaning Requirements
- How many coats of wax are needed for the VCT flooring?
- What is the total area (square footage) that needs cleaning?
- Will a single-phase cleaning be sufficient, or are multiple phases (rough, final, touch-up) required?
Equipment and Proposal Submission
- Can we use the on-site lift for high-area cleaning, or do we need to coordinate with another subcontractor?
- Should the proposal be sent directly to you or the project manager?
Additional Review
- Ask to review the architectural plans with the superintendent to confirm specific areas for cleaning.
During the Walkthrough
As you go through the site, ask, “Is this area included in our responsibilities?” to avoid any misunderstandings about the project scope.
Wrapping Up the Site Visit
Being well-prepared for your site visit can make the difference between a winning bid and a missed opportunity. Use this guide to ask the right questions, gather the necessary details, and set yourself up for success.
Key Questions for Running a Cleaning Business
To improve your operations and profitability, here are some questions to consider for your post-construction cleaning business:
Profitability
- Which services offer higher profitability—post-construction cleaning or general office cleaning?
Payment Cycles
- Is it normal to wait 3 to 6 months for payment after completing a post-construction cleanup job?
Supervisor Contact
- If we only have the superintendent’s name, what’s the next step to get their contact details?
Site Visits
- Who is the best person to accompany on a site visit?
Proposal Review
- Who typically reviews and approves cleaning service proposals?
Pre-Qualification
- What advantages come with pre-qualifying with a commercial construction company?
Managing Bids
- What are effective strategies for managing multiple bid invitations in a Gmail account?
Navigating Davis Bacon Prevailing Wage Rates
If your company works on federally funded projects, it’s essential to understand the Davis Bacon Prevailing Wage Rates.
- Why It’s Important: Contractors are required to pay specific wages and benefits on these jobs. You must file weekly payroll reports to ensure compliance.
- How to Calculate: Visit the Department of Labor’s Wage Determination page to find the correct wage rates for your project’s location and type.
Conclusion
This guide provides a comprehensive approach to pricing, bidding, and managing post-construction cleanup contracts. By following these steps, you’ll not only create accurate quotes but also enhance your chances of winning more contracts and growing your business.