Basic Proposal for Tender

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 terms or conditions are 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 are 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 Time Estimate					4 h 45 min.

Cost	4 h 45 min. at $7	= $33.25
Benefits 12%		= $ 3.99
Total Labour Costs		$37.74

Janitorial Supplies
Windex	$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: Government of Saskatchewan