[hso]

hi all, i am currently employed but in 12 months time i have a chance to quote for a school that pays out 190k a year for cleaning.

i am not registered yet as a business and will only do so if i get the contract, do you think for a county council tender i need any acreditation, ie ISO or BICS, will they expect to see accounts etc.....any help would be great i really want the tender and have 12 months to prepare but obviously need to stay in my full time work until i get the formal acceptance

[Rob_Mac]

hso

They will expect to see three years of audited accounts, possibly your bank account details and your inside leg measurement.

Low value contracts - under 30000? aren't as in depth but if I was giving someone 190000 per year I would want to know they could do it and that they had sufficient working funds in the bank.

That is a pretty serious contract how will you financially cope with going from employment to this ( I am presuming that you are not earning in that bracket - and this might be wrong!).

If you have your heart set on going for it - good luck, but unless you know someone who can give you inside information it will be an uphill struggle.

I would have thought that any established business would be pushed to ramp services up by 200000 per year, even with existing staff and finance in place.

You will not be able to do the work on your own so will have to employ several people, what experience have you of running a business. This one contract will see you hands off and completely reliant on your workforce.

Do not do it the way you have said, start your business now, get some experience, build up your working ethics and get some capital behind you and a workforce - then at least you have something to offer.

If you go in twelve months time and say I have no experience because I was edging my bets, I didn't want to give up my job till I got the contract but I am a great guy, please can I have 200000 per year, you may find yourself disappointed.

Put yourself in the shoes of the people with the power to hand over this level of contract and see how your approach may look.

You may already be employed managing the contract that you are intending to go for but that will not give you any of the experience that you will need to get the contract.

Rob

[trevor perry]

hso

They will expect to see three years of audited accounts, possibly your bank account details and your inside leg measurement.

Low value contracts - under 30000? aren't as in depth but if I was giving someone 190000 per year I would want to know they could do it and that they had sufficient working funds in the bank.

That is a pretty serious contract how will you financially cope with going from employment to this ( I am presuming that you are not earning in that bracket - and this might be wrong!).

If you have your heart set on going for it - good luck, but unless you know someone who can give you inside information it will be an uphill struggle.

I would have thought that any established business would be pushed to ramp services up by 200000 per year, even with existing staff and finance in place.

You will not be able to do the work on your own so will have to employ several people, what experience have you of running a business. This one contract will see you hands off and completely reliant on your workforce.

Do not do it the way you have said, start your business now, get some experience, build up your working ethics and get some capital behind you and a workforce - then at least you have something to offer.

If you go in twelve months time and say I have no experience because I was edging my bets, I didn't want to give up my job till I got the contract but I am a great guy, please can I have 200000 per year, you may find yourself disappointed.

Put yourself in the shoes of the people with the power to hand over this level of contract and see how your approach may look.

You may already be employed managing the contract that you are intending to go for but that will not give you any of the experience that you will need to get the contract.

Rob

 as above but you also have to take into consideration how much is it going to cost you for machinery etc to tackle this job, also what are the payment terms even if they pay you as soon as you put your bill in at the end of the month how much would you already have laid out in wages etc. And finally £190000 is a large amount but have you any idea what profit margin the firm is working on as some of these large contracts are sometimes running at only 5% profit margin i have heard of some at even less, i doubt very much you will get the job without accounts etc but even if it is offered to you i would think very hard before taking it on.
  To take this job on T.U.P.E regulations will probably come into play which means you will have to take on existing staff and pay same wages etc it also means you will be responsible for any existing holiday pay which is due this can be very expensive we recently took a large job on and it has cost us over £5000 in holiday pay for holidays they havnt taken with last company so as said be very careful before you take the plunge

[martin19842]

hi there

if this contract goes OJEC then the 10% revenue rule may apply, ie contract value not to exceed 10% of your company turnover.

and TUPE will apply on this, no way round it.

therefore you will need all the tupe info before you can even start to quote, the main reason for this tender process is cost, your costs will be set, your profit margin is the adjustable variable.

regards

martin

[hso]

Hi all,

Thank you so much for your quick and detailed replies.

i have the original tender quotation and its 30 % mark up. how on earth do i get round the 10% of turnover....merge ??

audited accounts.....merge?

i have lots of experience and the finances are not a problem, but being new i do not have the accounts bit or the turnover....

could i be a subsidiary off a company that has nothing to do with cleaning...

answers on a postcard please.. i want this one....

[martin19842]

hi there

is that 30 % gp, after managment costs etc.
if it 30% nett profit, then someone may have made a mistake, which could get picked up this time round.

regards

Martin

[hso]

it is 30 % gp, after managment costs etc. ...only other thing to come off this bottom line would be tax .....

i will keep u all posted

thanks again all

[martin19842]

hi there,

let me get this right, you have no other business expenses to deduct, public liability insurance, rent, rates, postage, stationery as examples.

regards

martin

[Pristine Clean]

hso

They will expect to see three years of audited accounts, possibly your bank account details and your inside leg measurement.

Low value contracts - under 30000? aren't as in depth but if I was giving someone 190000 per year I would want to know they could do it and that they had sufficient working funds in the bank.

That is a pretty serious contract how will you financially cope with going from employment to this ( I am presuming that you are not earning in that bracket - and this might be wrong!).

If you have your heart set on going for it - good luck, but unless you know someone who can give you inside information it will be an uphill struggle.

I would have thought that any established business would be pushed to ramp services up by 200000 per year, even with existing staff and finance in place.

You will not be able to do the work on your own so will have to employ several people, what experience have you of running a business. This one contract will see you hands off and completely reliant on your workforce.

Do not do it the way you have said, start your business now, get some experience, build up your working ethics and get some capital behind you and a workforce - then at least you have something to offer.

If you go in twelve months time and say I have no experience because I was edging my bets, I didn't want to give up my job till I got the contract but I am a great guy, please can I have 200000 per year, you may find yourself disappointed.

Put yourself in the shoes of the people with the power to hand over this level of contract and see how your approach may look.

You may already be employed managing the contract that you are intending to go for but that will not give you any of the experience that you will need to get the contract.

Rob

 as above but you also have to take into consideration how much is it going to cost you for machinery etc to tackle this job, also what are the payment terms even if they pay you as soon as you put your bill in at the end of the month how much would you already have laid out in wages etc. And finally £190000 is a large amount but have you any idea what profit margin the firm is working on as some of these large contracts are sometimes running at only 5% profit margin i have heard of some at even less, i doubt very much you will get the job without accounts etc but even if it is offered to you i would think very hard before taking it on.
  To take this job on T.U.P.E regulations will probably come into play which means you will have to take on existing staff and pay same wages etc it also means you will be responsible for any existing holiday pay which is due this can be very expensive we recently took a large job on and it has cost us over £5000 in holiday pay for holidays they havnt taken with last company so as said be very careful before you take the plunge

Hi Trevor,

Yes you are indeed 100% correct on the 5% profit margin.

They will want to see a complete break down of the actual costs, thats all costs and expenses and your profit margin. They will want to see everything from amount of chemicals, cost, insurance cost, profit and probably an agreement that the price increase will not take place less than 12 months plus and no greater increase than 3% tops.

Tupe will indeed come into play.

If he has not got the turnover he will not get the job! Simple as that! He will not be able to ask for 10% up front. And most likely be waiting 90 days for payment.

Thats  around £15,000 probably just on labour never mind the costs of chemicals etc etc, insurance.

School cleaning insurance is different to normal office cleaning insurance.

Plus its obvious that if he has to ask about things on here for such a big job, there is no chance.

Also if he had a clue, I would rather quote for 3 - 5 small cleaning jobs and earn more in profit, and also have less hassle and sleep at night.


Dave

[Cleaning Resource]

I would in your situation, approach other established cleaning companies with the view to buying into their company with this contract.

[hso]

Thanks again for the useful comments and some I feel were a little judgement but thanks anyway.

Let me explain, I have been in the cleaning industry for over 10 years, I ran a totally different business for 15 years and I am now a senior manager in a contract cleaning company.

The client has approached me....certainly not the other way round ! and wants me to take the contract over when the current one expirers, I have completed lots of quotations and tenders and been successful but I admit I know nothing at all about local authority work and I had the doubt that I would need audited accounts and the turnover in place to cover a contract this size of which on my own I do not have.

I will obviously have another chat with the client in the morning when I see her next and ask all these questions direct now I have a feel of what might be expected from me ...Thank you for the nod...

If I do need 3 years audited accounts and a 2 million turnover could my company be linked as a subsidery off another company that matches this criteria. (COMPANY IN MIND IS NOTHING TO DO WITH CLEANING)

I had thought about the merge with another cleaning firm that would also match the criteria but that does worry me in the fact that I may be liable for any of that firms debts etc when I know this is a very profitable contract.

I will see the client tom and ask her for the tender documents then I guess I will know exactly what I need to do to get this contract

Thank you again you have been very helpful

[hso]

I have had my meeting today and its 30 days payment terms, no I do not need 1.7 million turnover or 3 years audited accounts.

I am aware of the TUPE legislation and more than happy with the staff on site,

So all looking very promising, I will keep you posted. thanks again for all your help.

[Rob_Mac]

hso

Your subsequent posts have expanded the original one and paint the picture in a completely different light.

It seems that you are most of the way there and apart from basics I would cement the relationship with the contact and make sure that you are the only person in the frame by selling yourself and your knowledge. I wouldn't go as far to say it is in the bag but you might want to take the situation to your local Business Link and get them to assist you with the finer detail.

Good luck

Rob