Basic Proposal for Tender

Last Verified: 2005-10-19

Summary

The following are a number of areas you should be aware of when pursuing a contract for service. The appropriate professional services, such as legal counsel should also be sought out and utilized.

1. Site: Where the work is to be done? What size of area? What type of work?	7. Insurance: General liability insurance coverage! Amount?
2. Contact: Ensure you have a contact to clarify and discuss services with.	8. Contract time: When do you start and when is the contract over?
3. Qualifications: What methods are used to determine your qualifications and/or your employees?	9. Subcontractors: Note—be sure you are aware of supplementary conditions or specifications relating to subcontractors.
4. Examination of contract documents and site: It is up to you to examine documents and visit the site.	10. Omissions: If you think some term or condition is missing or there is a discrepancy, bring it to the attention of the owner.
5. Federal, Provincial and Municipal laws: It is important that you understand and comply with them in the performance of the work.	11. Addenda: Before submitting your tender prior to the closing, check to see if any changes have been made to the tender.
6. Bond: What size ($) and type of bond is required?

Example: Janitorial business

Seasons:
Spring, summer, fall and winter can create conditions that may require more time or special duties. Ice from sidewalks, mud from carpets and maintenance of shrubs.

Types of contracts:
It may cost a lot more to clean a restaurant as opposed to the equivalent space in an office.

Conditions of premises is important. A poorly maintained parking lot may track in mud and snow.
You may have to spend extra hours to get premises in shape.
More work may be required while renovations are being done.

Before signing a contract, have your lawyer review it and ensure you understand and can accept the obligations you will be responsible for.

Sample Calculation Sheet for a Janitorial business

For Client Quote

Five days per week

Customer Requires	Estimate of Time Required		Daily Weekly		Total Time
Carpet vacuumed daily	30 min	x	5	=	2 h 30 min
Damp mop tile daily	15 min	x	5	=	1 h 15 min
Empty garbage daily	5 min	x	5	=	30 min
Wash windows weekly	30 min	x	1	=	30 min
Total Labour Costs					4 h 45 min

Cost:	4 h 45 min at $7		= $33.25
Benefits 12%			= $ 3.99

Total Labour Costs			$37.74

Janitorial Supplies

Cleaning Agent for Windows	$1
Garbage Bags	$1
Total Supplies	$2

Equipment Costs

Vacuum	$700
Mop & Pail	$40
Ladder	$50
Pail Squeegee	$20
Cost of Equipment	$810

Cost x 2%/month

=$16.20 per month/4 weeks

= $4.05 per week

Total of estimate used as quote to client		$43.79 per week
	GST	$3.06
	Total	$46.85 per week

This is an example of what needs to be highlighted when defining the time, supplies, and equipment needed to pursue a tender. This same model can be used for other business service tenders.

Prepared by: Saskatchewan Industry and Resources, Business and Co-operative Services

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Last Modified: 2005-10-19

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Basic Proposal for Tender

Summary

Example: Janitorial business

Sample Calculation Sheet for a Janitorial business