CPI Free Weekly Online Newsletter
clean-pro-industries.com    2-15-20
Newsletter for the Week of February 15, 2000

CONSTRUCTION CLEANUP--
IS IT A MARKET YOU SHOULD PURSUE?

One frequently asked question concerning construction cleanup is "Should I get involved?"  Another is "How much should I charge?" 

As with other cleaning services, fees for construction cleanup vary slightly from region to region.  The type of construction makes a difference as well. 

Residential construction cleanup and commercial construction cleanup are similar, but not exactly the same.  Although many commercial buildings are quite elegant with high quality floor coverings, wall coverings, and decor, most commercial buildings are not of the same quality as most new homes. 

Some cleaners charge 12 cents per square foot for construction cleanup, not including windows that are billed extra at $5 to $7 per pane, depending upon the size and accessibility of the windows.  Ladder work requires extra charge.  At these rates you will earn about $30 per hour, depending upon your level of proficiency.  With practice your hourly rate will increase and your hourly rate will gradually rise to the $30 per hour level. 

When providing construction cleanup, a contractor needs to consider several precautions.  For example, it is not uncommon for construction crews to resoil surfaces when re-entering homes, apartments, or commercial building areas that have been cleaned, necessitating a recleaning.  Before this occurs, it should be agreed upon in writing that recleaning will be charged extra. 

Because banks are involved in new construction, there is much paperwork related to construction cleanup.  Some of the forms include the: (1) Job Safety and Analysis Form that describes the sequence of job steps, potential hazards, and recommended safe job procedures; (2) Certificate of Corporate Action signed by the officers of the cleaning company authorizing the contracting firm to perform the construction cleanup; (3) Acceptance Form signed by the construction superintendent upon completion of each phase of cleanup stating his or her acceptance of the work performed; (4) Employee Labor Lien Release with names and signatures of all employees stating that they have been paid in full for services performed; (5) a notarized Release and Waiver of Lien Rights stating that the cleaning contractor has supplied and paid for all material, services, and equipment agreed upon to complete the project; (6) Application for Payment with attachments, including Employee Labor Lien Release, Notarized Release and Waiver of Lien, and Acknowledgment of Accounting; (7) Acknowledgment of Completion of Contract and Full Payment and Waiver of Construction Lien; and other documents that may be required by the bank or the contractor. 

As you can see, construction cleanup requires more than the usual amount of paperwork.  It requires an immediate inspection and acceptance by the superintendent upon completion of each phase or area of cleaning.  It also requires enough capital to pay for labor, materials, supplies, and equipment before receiving payment from the construction company.

In some states a Builders Board License, costing hundreds of dollars, perhaps as much as $1,000 per year, is required for construction cleanup work.

Construction cleanup is a special breed of cleaning that requires good supervision and management acumen.  At times cleaning contractors will have to give up on construction cleanup projects before completion --without payment--because they are not well prepared when going into the project and cannot manage the fast pace of finishing each phase or area on time.  Subsequently other contractors are called in to finish the work. 

Construction cleanup can be profitable, but unfortunately the relationship between a construction company and a cleaning contractor is not the same as the relationship enjoyed by most contractors with their regular cleaning customers.  Because of the liens and other financial and legal requirements for construction cleanup, there can be an unspoken adversarial relationship between the construction company and the cleaning company.  The question is who will be responsible for problems during the cleaning process, the contractor or the construction company? Each side wants to protect its own interests. 

Since the cleaning contractor cannot be on-site twenty-four hours a day to make sure that the areas remain clean and undamaged after the work is finished, it is imperative that areas be accepted and signed off right away.  In some instances, however, it's not possible to find the superintendent to come and sign off. 

On the brighter side, one of the main benefits of construction cleaning of commercial buildings is having a better than average chance of ending up with the regular janitorial contract. 

Before bidding on a construction cleanup project, it would be wise to ask yourself whether the time, degree of risk, extra paperwork, need for more than the usual amount of on-site supervision, need for additional working capital, and need for continuous contact with the construction company's superintendent are worth the financial rewards.  Would your time be better served going after regular cleaning contracts?  You could try a project or two to decide whether this is something you want to do on a regular basis. 

By Forrest L. Farmer
Clean-Pro Industries, Inc.
 


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