Commercial cleaning is a sizable part of the facilities cost for most organisations, and it can be confusing to understand what exactly is covered.  In the B2B commercial office cleaning market, where bids can include many component parts, FM managers must be clear they know what is included in costings to remove guesswork and uncertainty. Price transparency is one way to mitigate this.  Here we examine what is meant by transparent pricing in office cleaning contracts.

What does transparent pricing in office cleaning mean?

Transparent pricing means breaking down the total cleaning cost into component parts so that each item is clearly identifiable.

Benefits of clear and transparent pricing

Understanding an office cleaning costing is vital for 4 reasons.

Firstly, it enables facility or building managers to compare cleaning costs from different companies on a like for like basis.  This is very useful to check that contractors are offering value for money.

Secondly, it enables budget holders to hold incumbent contractors accountable for what they are billing verses the service received.

Thirdly it provides a baseline cost, where it is easy to see the changes to the bottom line when one or more elements change.  This is particularly relevant in today’s environment with increasing wage rates and inflationary pressures.  This was also applicable during the pandemic when cleaning service requirements changed frequently, and facility managers needed to understand the impact on their budgets.

Finally, it enables clients to be clear on the wage rates being paid to cleaning staff working in their buildings.  This opens up discussion for introducing the Living Wage for instance.

Breakdown of a commercial cleaning cost

A commercial cleaning cost can be broken down in many ways depending on the nature of the work. In general however these are common elements common for most cleaning providers:-

Direct labour cost

This is the majority of the cost.  In simple terms, this is contracted hours multiplied by the agreed pay rate.  For example for one cleaning operative contracted to work 15 hours a week at £10.85, the direct labour cost would be £162.75.

Other labour costs include

Statutory

  • National insurance
  • Pension
  • Sick pay
  • Holiday pay reserve

Staff

  • Staff training
  • Recruitment
  • Staff vetting and right to work checks
  • Uniform

Materials & Equipment

  • Equipment including maintenance and portable appliance testing (PAT)
  • Cleaning materials and chemicals
  • Personal Protective Equipment (PPE) such as gloves and masks

Legal

  • Employers and product liability insurance

Consumables costing

These are usually charged on a usage basis, as the amount can vary from client to client.  Examples of cleaning consumables are below.

  • Paper products such as toilet paper, hand towels, tissues and centrefeed rolls
  • Waste sacks
  • Kitchen products such as washing up liquid, dishwasher tablets and rinse aid
  • Skincare and hand hygiene such as soap, sanitizer and anti-bacterial wipes

Services cost

Associated facility management services would include

 

TemcoUK Facility Services – open, honest and transparent pricing from the start

Every Temco quotation we provide shows a cost schedule for cleaning services, with clear and transparent pricing so that our clients know exactly what they are paying for.

The cost is broken down into elements.  Firstly, the total direct wage costs: the number of hours times payrate.  Secondly, there is a breakdown of non direct costs including for example national insurance, pension, sick pay and holiday reserve.  The third element is directly related to the cleaning such as equipment, materials and staff compliance costs such as vetting and insurance.  Finally we show our profit and overhead figures.  There are no hidden extras, and we charge only for what we have agreed with our clients.

Additional service costs are itemized by service line, for example window cleaning or pest control, and consumables are invoiced with a line-by-line breakdown by month and site.  All consumable unit costs are agreed in advance, and annual costs are provided where a purchase order is required.

Costs are updated annually in line with changes to the Living Wage Foundation rate.  These pay rate changes are announced in November with implementation within 6 months ie by May the following year.

If you would like to discuss your cleaning contract or are considering a change of cleaning provider, please contact Temco today 01895 520370.