Pricing commercial cleaning contracts is one of the hardest parts of running a janitorial business. Price too low and you'll win the contract but lose money. Price too high and the bid goes to your competitor. The solution isn't guessing — it's a systematic, data-driven approach to bidding.

The Three Pricing Models

Most commercial cleaning contracts use one of three pricing models. Understanding when to use each is the foundation of profitable bidding:

1. Per Square Foot

This is the most common model for office cleaning. Rates typically range from $0.05 to $0.25 per square foot per visit, depending on the type of facility, cleaning frequency, and level of service. It's simple for clients to understand and easy to compare across bids.

2. Hourly Rate

Hourly pricing works best for variable-scope work like deep cleans, post-construction cleanup, or facilities where the scope changes frequently. Rates range from $25 to $60 per hour per cleaner, depending on your market and the type of work.

3. Flat Monthly Rate

A flat monthly rate gives clients predictable budgeting and gives you predictable revenue. It works best for well-defined scopes with consistent square footage and cleaning frequency. Calculate it by estimating total labor hours, then adding your materials and margin.

The Bidding Formula

Regardless of which pricing model you use, every bid should account for these cost components:

1. Direct labor — Wages, payroll taxes, workers' comp, and benefits for the crew assigned to this facility
2. Materials and supplies — Cleaning chemicals, paper products, trash bags, and equipment wear
3. Overhead — Insurance, vehicle costs, management time, software, and administrative expenses
4. Profit margin — Your target margin should be 10–20% after all costs. Below 10%, one unexpected expense puts you in the red.

The most common bidding mistake is underestimating labor hours. Always do a walkthrough and time the tasks yourself before committing to a number.

The Walkthrough Checklist

Before submitting any bid, conduct a thorough facility walkthrough and document:

• Total cleanable square footage — Measure or request floor plans; don't estimate
• Flooring types — Carpet, VCT, tile, and hardwood each require different time and equipment
• Restroom count and condition — Restrooms are the most labor-intensive areas per square foot
• Special requirements — Secure areas, after-hours access, alarm codes, special equipment needs
• Frequency and scope — Daily tasks vs. weekly vs. monthly deep cleans

Using Data to Improve Your Bids

The best bidders learn from every contract. Track actual labor hours against your estimates for each facility. Over time, you'll build a dataset that makes your future bids more accurate. A time clock that records clock-in and clock-out at the building gives you this data without any manual effort.

Presenting Your Bid Professionally

A professional bid presentation can justify a higher price. Include your quality management process, a sample visit record, and your technology alongside your pricing. When a property manager sees two bids at similar prices but one comes with a GPS time clock, digital checklists and a client login to see every visit, the choice becomes obvious.

Pricing with Confidence

FacilityCare IQ does not build bids. It helps you price the next one: the time clock records how long every visit at every building actually takes, per person and per site, so your next estimate starts from real hours instead of a guess. Once the contract is signed, the rate goes on the site card and the monthly invoice is drafted from the schedule and that rate.