With a clear, concise written contract, signed and approved by all parties, there is little room—if any—for debate should problems arise.

A written agreement that is signed will not only have a better chance of holding up in court, but often helps prevent disagree­ments from ever getting to court in the first place. This is why contracts are so impor­tant, especially for facility managers and building service contractor.

There are often three parts to an agree or eliminates any ambiguities,” he says. “It also helps BSCs more accurately formulate their bids.”

Parillo says some of the possible items that should be included in a SOW package are:

• A name or title for the project, the loca­tion or address, and general description;

• A request for a list of the names of sub­contractors that may be hired and proof of insurance;

• More general items covering work rules, the need to notify the facility of uncov­ered problems or conditions, walk-thru dates and inspections;

• Invoicing specifics, such as where in­voices are to be delivered, frequency, when payments can be expected, and what information is required to be on the invoice;

• Material specifications and MSDS sheets that include a listing of the types of mate­rials to be used in the project—even if they are supplied by the facility—as well as alternative products and materials, if necessary.  

Request for Proposal

Once the SOW is completed, it is dis­tributed to qualified BSCs in the form of a Request for Proposal (RFP).

Parillo says some managers and admin­istrators may have a requirement to distrib­ute the RFP to a set number of contractors without assuring if they are qualified. “So­liciting bids just to meet a required quota is not prudent,” he says. “Instead, they should be selected based on their qualifications, years in business, and other factors.”

An RFP often includes such items as:

• The complete SOW package;

• When bids are due and where they must be submitted;

• What must be included in the RFP, such as insurance certificates, businesses li­censes, any certifications required, etc.;

• If and when BSCs may personally view the project or facility where the work will be performed;

• Contact names and numbers to discuss the RFP;

• Description, use, and size of the facility or facilities;

• Hours of operation;

• Number of tenants and estimated foot traffic.

The Selection Process

Now comes the fun part for facility man­agers: selecting the BSC. The bids submit­ted can actually be considered the first stage in the elimination process. Some bids may be delivered after the due date. Some man­agers will simply not accept bids after the due date as a matter of policy. Others may view a late submission as a sign that this BSC may have problems meeting contract deadlines and obligations.

Similarly, some bids may not include all of the requested information, such as insur­ance certificates. If ample time has been provided, these bids may also be elimi­nated. However, if the contractor provides sufficient reason why an item is missing and provides a solution to the problem within a reasonable timeframe, his or her proposal could still be in the running. Overall, the bids must be examined for thoroughness and to make sure they meet all of the SOW and RFP requirements.

As to charges, in some situations, ad­ministrators are required to accept the low­est bid as long as it meets all specifications. However, more commonly, studies report that administrators accept a mid-priced pro­posal, not accepting the lowest or the highest bidder.

Part of the selection process may also in­volve actually touring projects completed or performed by the contractor. “When se­lecting BSCs, this has become almost com­mon practice among facility managers,” says Parillo. “And, it is often best to make these visits unexpected if possible.”

Usually, the top contenders in the bidding process are interviewed. When selecting a BSC, for example, an interview is the per­fect opportunity to assess how the in-house staff will interact with the contractor. In ad­dition to reviewing the proposal, in-house managers can often get a good feel about what type of relationship the department will have with the service contractor. “The in­terview may have little to do with the qual­ity of their work,” Parillo says. “But if you don’t feel you can work with someone, there is no point in getting further involved.”

BSC Specifics

A good working relationship is imper­ative when hiring a cleaning service, ac­cording to Parillo. Whereas a general contractor may only be involved with a project for a few months—possibly a year—a BSC may be involved with a project for two, three, or more years. Therefore, cooperation and communica­tion will be vital between the BSC and in-house department. With a BSC, there may be other contract differences as well. “For instance, general contractors will sub­mit invoices and expect payments during certain stages of the project,” says Parillo. “A BSC may stipulate that their invoices are submitted on the first day of the month with payment due by the end of the month or sooner. This is quite common and helps [the BSC] with their cash flow. Drug testing and criminal background checks are also becoming standard contract requirements.”

Additionally, a contract with a BSC must include a clear termination clause that is agreed to by all parties. In some cases, it is very simple and only requires that each party notify the other within a set period of time before termination. However, some BSC contracts can make it more involved to terminate the agreement. For instance, the contract may stipulate that the facility must give the BSC a defined period of time to correct a problem or take other steps before termination. ❑

Robert Kravitz has owned three con­tract cleaning companies and is now a writer for the cleaning, building, and healthcare industries. He may be reached at rkravitz@rcn.com.