THE BASICS OF BIDDING (Part 1)
The bidding process is not a fine-tuned science. There are many variables in construction cleaning but the good thing is there are also several ways to figure the numbers.
So, for the basics of pricing, here's the three ways to calculate a bid. The first way is PER PIECE.
We often figure bids based on a per item basis. For example, we have bid apartments at $100 per unit and figured the numbers for a hotel based on rooms.
This method is best when the size of the units (or rooms) are similar. If you're cleaning apartments, the procedure will be the same in each unit, so you can figure your expenses at a per unit cost.
Likewise, if you're doing spec homes (cookie-cutter homes) that have three basic layouts, you can average them together and then give the builder a single price per home.
For example, we can break down the manhours in an apartment and specify how long -- at the most -- it should take someone to clean.
(This is the worst case scenario. We always try to beat these numbers.) We will allow 1 hour to clean a tub, 1 hour to do the windows, 1 hour for the open areas (floors, doors and base), 30 minutes in the rest of the bathroom, and 45 minutes in the kitchen. Worst case, that unit should take 4.25 hours.
Now, when we are paying out $12 an hour, that figures out to $51 per unit. Add $2 for supplies per unit and another $5 for overhead expenses. So our total cost per unit comes out to be $58.
Several years ago we bid a 132 unit complex at $112 per unit. At the numbers I gave you, that's $54 per unit profit. Multiply that by 132 for the grand total PROFIT -- $14,784.
Now, that project spread out over several months, but we also ran other jobs during that time. I love the variety construction cleaning offers! This gave us a nice cash flow with chunks of money to put in the bank. Ka-ching!
Of course, any part of the work you do yourself is money in your own pocket. On a job (if we are supervising ONLY), we like to keep our labor and other expenses down below 50% of the contract price even with bonuses or other incentives. If you can keep it below that, fantastic! More power to you!
We are currently working on a project that they budgeted almost $200 per unit. That per unit price does include the clubhouse square footage and the common areas (hallways, laundry rooms, etc.)
but we're getting 15 cents a square foot. We do have three story glass to deal with, but the windows fold in for easy access in all the units.
The clubhouse has windows that are only accessible by ladder or by using a window extension pole, but we are subcontracting those out to our window washer because I'm not willing to do that
anymore. But you get to choose what you want to do and what you want to pay out on.
So, for this particular type of project we prefer to bid per unit (especially apartments and hotels) since it simply involves doing a multiplied number of similar units.
Now "per unit pricing" is only the first way you can bid a job. In my next article I am going to explain the second method of pricing for a construction cleaning project. Until then, best of business to you!
Julia August is one of the co-founders of SHINE Construction Cleaning. She is also the author of the FREE construction cleaning newsletter, "Cleaning Up For Cash," which helps people start and grow their own successful construction cleaning companies. You can visit the SHINE website at http://www.shinecleaning.com to sign up for your FREE newsletter and start cleaning up for cash today!
Studying On Faith Alone
No comments:
Post a Comment