Estimating Large Commercial Retail Space - Cleaning Talk - Professional Cleaning and Restoration Forum
 
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post #1 of Old 12-15-2015, 11:43 PM Thread Starter
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Estimating Large Commercial Retail Space

Estimating Large Commercial Retail Space

First of all, I am learning that you can generally base your estimate
on so many cents per square foot, but not necessarily so with an area
this large, 42,000 Square Feet. Although I am still open to hearing
from "experts" in that regard.

What I have discussed with my owner is the approach that as long
as you make a good profit margin, what difference does it make how
you formulated the bid? Cents per sq. ft. or based on hours worked
and expenses?

The General Manager of the retail business, upon further query from
me, stated that the present crew they have, who they have become
displeased with, and thus, why we are approaching them with our bid,
would be in the store one night from 8pm until midnight. There were
4 workers total doing the work. The company locks them in t 8pm and
lets them out at midnight.

So, anyway, in our case, the cost of the materials that are needed to do
this job are around $800. There would be a total of 4 workers doing this
job, counting the owner. So, the 3 workers, hypothetically being paid $25
per hour - that would come to $300 - figure the owner for $25 per hour,
as well - and we're looking at a total of $400 for worker costs.

So far, that comes to $1200 in labor & materials. Considering if the
business had to rent the truck mount and other cleaning equipment,
extremely liberally I would say that would tack on at least another
$500. For my finder's fee, as I made the contact by phone and set
up the deal, my commission would be $200. That brings our expenses
to $1900.

Also, this retail business General Manager is saying that he would
want our company to perform this work once every month, a scrub
and buff. Once every three months, he would want a deep scrub and
wax and once a year a strip and complete re-do. Basically, it means
that whatever bid we submit would pretty much have to be paid by
the company every month, so we have to be sure it is as reasonable
an amount as we can get.

Since this is basically a potentially long-term monthly contract, we want
to do our best to not over-bid this job. We can't get a clue out of the GM
what the present cleaning team they now have is getting monetarily.
Sometimes they will tell you, but most not. In this case, NOT. He did tell
us that the present cleaning crew only takes 4 hours and they are not
happy with their work, it is also in my mind that maybe the 4 hours is
not enough and they rush and maybe that's why the place is not happy
with their work. My owner was VERY surprised that it could only take 4
hours to do the work.

Another thing is it is a hobby shop retail customer floor with lots of about
4'X4' product displays throughout the store. So, this is not a big, open
space floor area. It has a large number of these 4'X4' product display
stands. Does it sound like an area that could be cleaned in 4 hours by
4 workers?

I have suggested to the owner that as long as you are going to make a
good profit, considering all of your expenses and labor and time involved,
don't bid so high, if it is really only 4 hours for 4 people. He is thinking of
bidding around $3000 - i even thought $3500. That way we would have
some wiggle [negotiation] room.

I have also thought we need a clause that says if it does take longer than
the 4 hours the GM said, we would have to add a proportionate $ amount
onto our final invoice but not sure how we could do that - if we are agreeing
to a certain amount to do the job??? That is a question and a concern - what
do we do with that?

In my opinion, as long as the cleaner owner is making a good enough profit
margin and it is a long-term job - even $3000 would be a fair bid. As I am
not an expert at bidding, that is why I am presenting this scenario here for
your feedback.

Last edited by KleanerDude; 12-16-2015 at 12:11 AM.
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