Cleaning Tenders: Mastering the SLA and Labour Rates

The 36-Month Opportunity

Cleaning tenders are the 'bread and butter' of the service industry. They are typically awarded for 36 months, providing incredible stability for an SME. However, because the barriers to entry seem low, competition is fierce. The only way to differentiate yourself is through Operational Excellence and strict Labour Compliance.

Pricing the Human Factor: BCCCI Rates

The biggest trap in cleaning tenders is under-pricing labour. You cannot just decide to pay R3000 a month. The cleaning sector is regulated by the Bargaining Council for the Contract Cleaning Industry (BCCCI).

Tenders invariably ask for a pricing schedule based on the Sectoral Determination. If your bid price is lower than the minimum wage + UIF + Provident Fund + Bonus calculations, you are automatically disqualified as 'Non-Responsive'.

The Calculation Checklist

1. Basic Rate: Minimum hourly rate for Area A (Urban) or Area B (Rural).
2. Leave Provision: You must budget for 21 days annual leave + sick leave. You need a 'Reliever' budget.
3. COIDA: Workmen's compensation is mandatory.
4. Uniforms: 2 sets per year is standard.

The Service Level Agreement (SLA)

Once you win, the Departmental Facility Manager will monitor you against an SLA. This is a scorecard. If you score below 80% for two consecutive months, you can be terminated.

What They Measure

• Attendance: Is the full complement of staff on site by 07:00? Late arrivals are penalized.
• Consumables Availability: This is the #1 complaint. If a Director walks into a bathroom and there is no toilet paper or soap, you get a penalty letter.
• Deep Cleaning: Did you do the quarterly carpet shampoo or window wash as scheduled?

Consumables Strategy: Refills vs Bulk

Your profit margin is often hidden in the 'Consumables & Equipment' line item, since labour is a fixed pass-through cost. Strategy: Specify high-quality dispensers that control usage (e.g., foam soap instead of liquid, one-sheet toilet paper dispensers). Cheap consumables get wasted/stolen faster. Investing in better dispensers (which you retain ownership of) reduces your monthly refill bill, increasing your net profit.

Conclusion

Cleaning is high-volume people management. Success is not about how well you mop; it's about how well you manage HR issues (absenteeism, strikes) and logistics (stock delivery). Prove to the client you are a 'Management Company', not just a commercial Cleaner.