As of the writing of this blog, the Hospitality Industry as a whole is on a significant rebound from just a few years ago. Occupancy, ADR and RevPAR are making solid gains, and hotel development, both domestically and abroad, is nearing pre-recessionary levels. That is great news for all of us. However, because of the lessons learned in this past recession, cost containment and fiduciary responsibility are still top of mind for hotel owners and operators alike.
While saving money in your hotel is important, it is imperative to take ALL factors into consideration when securing bids for any outsourced services. Take overnight cleaning for example. When bidding out this service, it is critical not to make your selection of a cleaning partner based strictly on price. For instance, if you take three bids for your overnight cleaning and two of the bids come back and are very close to each other in actual cost, for the same scope of work, and the third bid comes back several hundred dollars or even more less per month than the first two bids, that should raise a red flag. Most reputable overnight cleaning companies will bid your scope of work within 5% of each other. When a company provides a bid that is substantially below the rest of the companies it should raise the following questions in the mind of the hotelier:
1) Has the low bidder under bid the account just to secure it, and will he be able to service the scope of work to the satisfaction of the hotel? Please remember that the bulk of the overnight cleaning expense is in the area of labor. If it is bid with inadequate labor resources factored in, there is no way the scope will be completed nightly to the satisfaction of the hotel.
2) Is this vendor paying his crew at least the required minimum wage rate for the market he is bidding?
3) Is this bidder carrying any Commercial General Liability Insurance and Workers Compensation for his company and his crew?
4) Is this bidder providing adequate limits of liability in each area to satisfy the requirements of the hotel or corporate office?
5) Is the bidder providing a labor force that is working illegally?
6) Is this bidder providing background checks and drug testing on each of his employees to protect the hotel?
While the lowest bid may, on the surface, look very competitive, in reality a deficiency in any area cited in the questions above, could open the hotel up for negative press and worse in the way of legal battles. It is imperative that the hotel protect itself, by making sure the vendors liabilities don’t become a liability for the property. For instance, if one of the vendors employees was hurt while working in your hotel, and the vendor had inadequate insurance, it could end up being an expensive lawsuit for the hotel. You may get a lower bid from vendor who is not licensed and insured, but a later injury to one of his crew could result in a major lawsuit and eliminate completely any cost savings realized by selecting that vendor in the first place.
Additionally the hotel needs to protect the safety and well-being of its guests. That’s why background checks and drug testing should not be optional. The following links attest to the gravity of this practice:
In summation, if a bid price for any service seems to be too good to be true…it probably is. The rule of thumb is “Buyer Beware”, if that bid is well below the rest of the group.
If it is time to bid your overnight cleaning please give Hotel Cleaning Services a call. We will travel to your property, meet with your management team, discuss your cleaning needs, tour the hotel to review the scope of work, then develop a customized scope of work specific to your property. This would be at no cost or obligation to the hotel. Additionally we will address the questions posed earlier in this diatribe. We provide the adequate and required levels of Liability Insurance and Workers Compensation in all of our accounts. Additionally we can provide full background checks and drug testing for every employee that we provide for your account. We not only want to be your overnight cleaning company of choice, but we will provide you peace of mind knowing that your cleaning company has your best interest at heart.
Please contact us today for your complimentary bid.