What You Should Look For When Comparing Janitorial Companies

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Executive Summary

In today’s economy, property owners and managers alike are constantly scanning the horizon, searching for opportunities to outsource their custodial services to custodial companies in order to improve operational efficiencies. When it comes to finding a custodial services company that will provide best practices at the right price, successfully managing the vendor selection process is key.

RFP Size Matters

Long before drafting an RFP or narrowing the field of custodial companies, spend plenty of time clearly identifying your requirements. The more detailed your expectations - and your RFP - the more precisely your needs can be met. If you’re new to the game, talk to vendors informally to help you uncover the range of services available.

Narrowing the Field of Custodial Companies

When deciding which custodial companies to consider, use this criteria as a guide:

- Commitment to Quality: Does the company really have a quality assurance program to “Inspect what you expect?”
- Reputation: History repeats, so references should be a major factor in your decision. Talk to references, visit their buildings and inspect the quality of the vendor’s custodial services.
- Scope of Resources: Is the vendor able to expand with you? Do they offer the operations manuals, training programs, or back office support you need?
- Existing Relationships: Relationships are a key factor for the RFP inviting process. Not all janitorial companies are created equal. Large contracts require a large trust level.
- Cultural Match: Is the vendor large or small? Local or national? Do they mirror your company in terms of scope, locations, objectives? Do they participate in reputable industry organizations?
- Added-Value Capacity: Do they offer additional services that can be easily absorbed within their existing custodial services?
- Price: The bottom line is critical, but beware of the “penny-wise, pound-foolish” syndrome. Inexpensive janitorial companies could end up costing you more in the long run. Make sure you identify the labor, equipment and supplies needed to do the job right.

Pulling Back the Curtain: Understanding Pricing Models

Once you’ve reviewed RFP responses from the janitorial companies and walkthrough information, you can prepare your pricing model. Most include:
- Labor, including payroll taxes, insurances, and benefits
- Direct Operating Costs, including supplies, uniforms, transportation, cell phones, employee screening, etc.
- Overhead and Profit

Vendors should be willing to fully explain their pricing model and answer any questions about their custodial services and pricing methods.

Apples to Apples: Selecting the Vendor

Selection often boils down to two simple (yet complex!) factors:
- Can the vendor do the job?
- Can we work well together?

How well do the janitorial companies stack up? Which one offers the right mix of service, staff, tools, and price to get the job done right?

To find the answers and ensure fair comparison, revisit your RFP requirements and examine these details:
- Labor — Verify the number of cleaning hours and total hours in custodial services received per day.
- Payroll Taxes — Ask for taxes to be broken out by their categories and compare FICA, FUI, SUI. Ask for explanations of any large discrepancies.
- Insurances — Accredited janitorial companies should be able to document proof of required general liability and workers’ comp.
- Equipment — Does the bid have enough budgeted for the job? Compare among different janitorial companies.
- Supplies — Be sure to agree on quality. Tissue, soap, and towels are a major expense in custodial services and can be a major complaint area if quality is not agreed upon.

About ABM

ABM (NYSE: ABM) is a leading provider of facility services in the United States and various international locations. ABM’s comprehensive capabilities include janitorial, electrical & lighting, energy solutions, facilities engineering, HVAC & mechanical, landscape & turf, mission critical solutions, and parking, provided through stand-alone or integrated solutions. ABM provides custom facility solutions in urban, suburban and rural areas to properties of all sizes - from schools and commercial buildings to hospitals, data centers, manufacturing plants, and airports. ABM Industries Incorporated, which operates through its subsidiaries, was founded in 1909. For more information, visit [ABM.com/Janitorial](https://www.abm.com/Janitorial).