HOW TO GO ABOUT CHOOSING A CUSTODIAL CONTRACTOR

Noted custodial maintenance and plant engineer Edwin B. Feldman literally wrote the book on building maintenance, with many authoritative books to his credit. As a consultant to end-users, he advises companies on how to develop comprehensive programs for custodial maintenance, using both in-house and outsourced solutions. In his book Managing Housekeeping & Custodial Operations (National Trade Publications, Inc., 2000) he states that some organizations find benefits and advantages in contract cleaning, including:

• Lower custodial maintenance costs
• Fewer work hazards
• Greater flexibility in hours worked and staff size
• Low/No investment in equipment
• Short notice cleaning
• Decreased union problems
• Qualified workers
• Lower employee benefit costs
• Updated equipment

Of course, being a qualified consultant, Mr. Feldman also points out that using a contract cleaning solution has its perils, including:

• Deterioration of quality
• Disparity of objectives
• Loss of control
• Lack of proprietary attitude
• Loss of flexibility in meeting changing conditions
• Quality impact of contractor management changes

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REQUEST FOR PROPOSALS / REQUEST FOR QUOTES

Issuing a request for proposal (RFP) or request for quote (RFQ) is a good way to make sure everyone is bidding "apples-to-apples" and giving you a quote based on identical specifications, but they require a bit of knowledge – you should have a clear understanding of the scope and detail you require for the project. One way to do this is by going through your prior cleaning contracts and deciding what specifications you want. If you have been unsatisfied with the results previously achieved, you will need to change the specifications to achieve your needs. If you are uncertain as to what the specifications should be, you can bring in an outside consultant, hire a management company, or invite a reputable cleaning contractor to help you determine the details before assembling the results into an RFP/RFQ, and then open the process to bidding. No matter your approach, a well-written RFP/RFQ helps you maintain control of the bidding process. Back to index.

CLEAR SPECIFICATIONS

Having service specifications is key to controlling the bidding process. Who should create these? If you want a job done right, do it yourself; specifications should be your work product, not something pieced together by an outsider looking to reduce service and maximize profit. How do you know if your specifications will produce the results you desire? It’s not rocket science, but there is an art to getting the best result for the best price. A combination of logic, experience, and good advice from others usually helps. Try spending time with cleaning equipment and supply vendors in addition to cleaning contractors and consultants. In the end though, it’s what works versus what doesn’t; sometimes you are forced to attempt various solutions until you find the best solution for your dollar, or any price for that matter.

If you break the bidding process into two phases, you can meet with a few contractors first to help design the specifications, then invite a few more companies to provide a quote based on those exact specifications. Remember to always include your current contractor when taking bids (so long as you are willing to retain them), doing so keeps the process above board and open, and makes them feel inclusive. Another approach is to start with a sample set of generic specifications and modify them to your liking, making sure to get the input of key internal personnel and management, and if applicable, someone outside of your organization such as a consultant or reputable contractor.

No matter your approach to designing specifications, remember that if you choose to allow the contractor to control specifications, you must be extremely careful about exact wording. Remember that contractors can sometimes be very crafty in the design of the specifications, and you may not always get what you think you’re buying. Back to index.

SETTING A BUDGET

First, define clean. The Merriam-Webster dictionary defines “clean” as “free from dirt or pollution.” When you read the phrase “free from dirt” you might picture a microchip clean-room environment or maybe a baseball home plate after the umpire has swept it off; at best the definition is subjective. We all know a pretty woman or a handsome man when we see one, but it is difficult to define and nearly impossible to agree upon.

Keeping your definition of clean in mind (and that of your organization as a whole), to determine how much it should cost to clean a facility you need to:

1. Gain a clear understanding of what your organization defines as clean. This is likely best done based on how each area of the facility is used and the personnel who populate the area. Remember to remain cautious about the demands of others, especially if there is no cost for their desires. A detailed janitorial survey may be necessary, especially if you have a large, diverse organization.
2. Write cleaning specifications to produce the desired results.
3. Estimate the average amount of time needed to do the work. [Note: most contractors are reluctant to share time estimates with current or prospective customers.] You can base your estimate on current cleaning times by observing your current cleaners. You can also hire a consultant to provide a time estimate, or do what many contractors do and use industry standards based on time and area (join BSCAI to get a general guide).
4. Determine a reasonable hourly wage for staff and add a percentage for wage overhead. Again, your current or prospective contractor may not be overly helpful in this regard; you may need to use a consultant to help provide guidelines or follow gut-instinct since you likely know about wages for your region.
5. Take the labor hours estimate, multiply by the wage estimate, add a good faith estimate for supplies, equipment and profit, and you will have an idea of a budget, then add a reasonable plus/minus range so you can begin assessing bids that fall within the range.

Does the above sound confusing? If this is too time consuming or overly complex, you can easily identify with the many buyers who choose the much simpler method: take bids, hope for the best, and let the market determine budget. This approach is workable so long as you can trust the bidding contractors to provide workable solutions and fair pricing. If you can’t trust the contractors or don’t have enough knowledge to discern the truth, the competitive market approach can yield erratic, sometimes disastrous results. If you are uncertain as to what needs to be done and how it will be done, unless you are fortunate and find a reputable firm, you may end up going through several contractors before you find the right fit.

If budget is of primary concern, another approach is fixed budget where you establish price and let the contractors propose solutions. By fixing budget first you need only focus on the cleaning specifications to understand the differences between contractors. Of course, if you set your budget too low, as you consider various proposals you may find that your budget must be increased if you cannot get the desired results. In the event budget must be increased, discuss the cost of the modification, increase the budget amount and ask all the bidders to resubmit specifications based on the revised budget.

Remember that fixed budget is still fair market; it just reduces the number of variables that must be assessed when comparing bids if you allow your contractor to provide their own specifications. The fixed budget approach isn’t novel, most consumers use it every day when shopping for commodities (try haggling prices at Burger King or Exxon). When budget is your primary concern, janitorial service becomes less of a customized service and more of a commodity. Normally, commodity buyers look to their wallet to determine how much they can pay and then choose among the options. Back to index.

INTERVIEWING YOUR CONTRACTOR

Who are these cleaning contractors? They come to your office, sit in your chair, drink your coffee, stroll around your facility, but do you really know them? Likely the people you meet with will rarely if ever spend much time with you after the contract is signed. And, if the salespeople are owner/operators and initially spend time with you, how long before their business grows and they don’t have time for you anymore? One way to combat this phenomenon is to meet the operations supervisors who will work with you. To do this, spend time interviewing the sales personnel first and, if you like what you see, then meet the operations people before making the final decision. Take the time to speak with the people who will actually be responsible for servicing you, you may be surprised at how much you learn, and the kind of mistakes you can avoid. Back to index.

CONTRACT CONSIDERATIONS & CANCELLATION CLAUSES

Most business arrangements involve written agreements, and in janitorial services the contract is vital to a successful relationship; the contract should spell out all the important details to help avoid disputes. As with most customer/vendor arrangements the vendor typically initiates the contract and provides the template from which the final agreement is fashioned; however, especially in the case of managed properties, it is not uncommon that the buyer initiates the agreement. In either case, make sure the contract addresses all of the necessary terms, pricing, and specifications necessary, and includes pricing for extras that may be provided at a later date. Most importantly, make sure the contract gives the buyer the opportunity to end the contract prematurely in the event of poor service or any other critical factor such as security violations, change of ownership, destruction of premises, etc. Providing the contractor a period of time to cure a default is customary and appropriate, but limit the number of times a default can be cured over a period of time.

If there is a no-fault early termination clause, make sure there is a fixed fee for doing so; don’t allow the cost of early termination to be left to the imagination of a court and something that needs to be negotiated after the fact. If future pricing is important or the contractor has a large investment in equipment that needs to be amortized over a long period of time, you may want to consider a long-term contract. Short-term contracts have the advantage of being easy to end if some non service issue arises, but reduces the commitment level on both sides of the fence, especially early on; it is wise to remember that both parties want a committed relationship and there’s nothing like a 30-day contract to spell out just how non-committal each party is. Back to index.

WRITTEN NOTIFICATION

What happens if service doesn’t match expectations? If you look to the specifications and find that frequencies or tasks are not being adhered to, you should address concerns in writing. By doing so you begin the task of documentation that both brings the seriousness of the issue to the forefront and creates the necessary trail for terminating the contract prematurely, if necessary. The rule of thumb when dealing with janitors is the same as employees: document early and often. Back to index.

DEALING WITH SENIOR MANAGEMENT/OWNERSHIP

If you are the owner or president, don’t read this. Your impression of the current janitorial service is only part of the equation. Before making changes – test the waters. By getting the input of senior management/ownership, you gain an understanding of how change will be received. Don’t let off-the-cuff remarks and knee-jerk reactions misguide your attempts to improve the look and appearance of your facilities. Many times management/ownership is reluctant to make changes, and using a written janitorial survey will help you to document the belief of management at large and uncover the true support of upper management. Back to index.

UPSETTING THE APPLE CART

How will others react? Just as senior management/ownership can derail change before the fact, operating personnel can doom change after the fact. To avoid being the champion for change only to see it crash and burn when implemented, find out first how the staff feels. This is especially important in instances where a few key staff members interact with the janitorial contractor. Unless you get buy-in from key personnel, change is easily torpedoed. Use a documented janitorial survey to uncover hidden agendas or allegiances so you can anticipate problems and attain the necessary support for change. Back to index.

UNDERSTANDING YOUR BUYING PROCESS

After the honeymoon, will you still be happy? Once you’ve made the decision to change and feel you have the support of management/ownership and staff, the task of going out to bid can be daunting. Listening to one salesperson after another is a true test of wills, and understanding which claims are false or misleading can take its toll on even the strongest buyer. One way to lessen the load is to break the process into two segments – initial interview and bid. This approach gives you a chance to speak with several potential companies and then choose which you want to submit bids. After you pare your bidders down to a few, then invite them in for a combined walk-through of the facility with sufficient time for questions and answers both before and after the walk-through. This not only gives you a chance to explain everything in detail while minimizing your time commitment, you get a second opportunity to interact with each contractor, this time in a group setting. You should also consider asking the contractors to have their operational supervisor attend the walk-through so you get a chance to assess the person you will interface with on a day-to-day basis. Finally, after you have reviewed the bids, choose the final 2 and invite a key upper management and staff member to sit in on the presentations before deciding on the winning contractor. If you plan and choose well, the process of going out to bid will only need to be repeated every 3 to 5 years. Back to index.

HOW MANY BIDS TO TAKE

How many is enough, and how many is too many? Statisticians have proven that small samples are reliable indicators and there is no need to survey the entire population to understand the truth. There are many reasons to interview many companies, especially when you are concerned with business culture, personnel, or other non-price factors. Do not limit the number of companies you interview, but don’t take bids until you’ve determined the companies that you do want to do business with. Following the advice above, break the process into two components so you are not overwhelmed. Once you’ve determined who will bid, then you can limit the number of actual bids you take thereby cutting down your time commitment. By limiting the number of bids you force yourself to choose the best applicants and avoid the potential of awarding bids to contractors that are not a good fit for your organization. Once you’ve pared down the list, try to limit the number of bids to between 3-5 at most. If you find the resulting bid pricing to be outside of your budget, or if you take a fixed budget approach and find the specifications do not meet your needs, you likely didn’t provide enough information about budgetary restrictions or your expectations exceed what contractors can provide for your budget. Back to index.

UNDERSTANDING THE VENDOR / CLIENT DYNAMIC

It is one thing to get the service you want, it’s another to work with people you like. As an employer there is nothing worse than having a great employee that you can’t stand to work with or having a horrible employee that you like as a person, and the same holds true of your outside contractors. Matching the vendor/client dynamic is difficult but worthwhile, especially when seeking a long-term relationship. Understand how the contractor does business by uncovering their business processes, then match the contractor’s business processes to your organization and to help uncover potential issues. Is your organization’s culture for paying vendors different than what your vendor needs or expects? Does your vendor require advance notice and your organization’s culture demand immediate response? Is your vendor’s business philosophy similar to your organization’s? Does your vendor provide clear and concise invoicing, are they available after-hours and/or weekends, can they do emergency work? Understanding your organizations culture and matching it to your contractors culture is important and key to a successful long-term relationship. Back to index.

DEALING WITH PAIN

Finding out if change is needed. There are times that even the most drastic measures must be taken, like cutting off a gangrenous limb or removing a cancerous organ. But taking drastic measures to cure a small defect is senseless and unproductive. Is the pain you currently feel real, can the pain be corrected, have you taken every measure to correct the pain? Often, a simple and frank conversation or letter/email can produce the necessary results, and making change can sometimes cause more pain than the issues you currently face. On the other hand, if you can easily articulate the pain, have already made reasonable attempts to correct the problems, and/or believe there are dire implications if change is not made, don’t hesitate, document and make the move! Back to index.