Should we go out to tender?

Should I go out to tender to appoint an external cleaning contractor?

A question we are often asked. Any client in the public sector who has a contracted cleaning service are required to tender their cleaning services every 3 – 5 years, dependent on length of the contract and annual extensions. Clients in the private sector who have a contracted cleaning service are free to choose when and if they want to tender / re tender their cleaning services.

Clients in both sectors who have an in house cleaning service can tender their cleaning services at any time should they decide a contracted service would be better suited to their requirements. Consideration of VAT cost should be given by clients with charitable status, such as universities. A contracted service would be liable to VAT on the labour cost which is not recoverable for such organisations.

Quick facts

• A contracted service is subject to management/profit charges for the service provider
• Contracted labour costs are subject to VAT which may not be recoverable
• External service providers are specialists in their field. Therefore, they can recommend innovations, within a continuous improvement programme during the contract period.
• The tender process ensures all costs are transparent
• The tender process will ensure value for money, as costs submitted by bidders are evaluated and scored during the tender process.
• The contract will be entirely managed by the appointed service provider
• All materials and equipment would be supplied new at the start of the contract by the service provider.

Conclusion

Back to the question Should I go out to tender to appoint an external cleaning contractor? There is not a simple yes or no answer. It must be considered on an individual client basis. From our experience going out to tender may be the ideal solution for one, where another may like more direct control of the cleaning service, so tendering would not be a suitable solution.

“If there’s a better way to deliver your FM services we will help you find it”

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