STEP 01
Define the actual work
Record the cleanable square footage, room types, restroom fixtures, floor surfaces, visit frequency, access restrictions and periodic tasks. Estimate labor using your observed production speeds and realistic task allowances. Two offices with identical area can demand different cleaning time.
For recurring work, distinguish visits per week from visits per month. Record which calendar convention your business uses rather than silently multiplying by four.
STEP 02
Build a cost per visit
Convert hourly wages to a loaded labor rate using relevant employer costs. Multiply that rate by estimated staff-hours, then add supplies, travel, equipment allocation and other direct costs. Add an appropriate allocation of overhead, but avoid counting the same expense twice.
Mark uncertain assumptions for review after the first actual cleaning visits.
STEP 03
Margin and markup are not interchangeable
Markup is expressed as a percentage of cost. Margin is a percentage of the selling price. For a targeted gross margin, use Price = included cost ÷ (1 − target margin). For a 25% target margin, divide by 0.75; adding 25% to cost does not yield a 25% margin.
STEP 04
Worked example using fictional numbers
Suppose a cleaning visit requires two staff-hours at a loaded rate of $21.60 per hour: labor costs $43.20. Add $8 in supplies, $6 in travel and $7 allocated overhead. Estimated included cost = $64.20 per visit.
At a 25% target margin, $64.20 ÷ 0.75 = $85.60 per visit. An illustrative schedule of 20 visits per month would imply $1,712 monthly before any separately billed items or taxes. These are not market-rate recommendations.
STEP 05
Track what happens after award
Record actual hours and expenses after work begins. Compare with the estimate so you can identify underpriced services, scope changes and unusual labor overruns. An estimate is a planning model, not a guarantee of contract awards or profit.