Estimating Large Commercial Retail Space
Since I am not getting any replies to this previous post, so far,
I want to add something. 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. 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.
