Janitorial subcontracting: how small crews win work from national contractors

Subcontracting is not a replacement for your own clients. It is a way to fill routes, keep crews busy and build references while your direct sales pipeline grows. Be clear with yourself about the trade.

The best subcontract buildings sit close to routes you already run. A single retail store 40 minutes from your nearest crew rarely pays. Three stores along an existing route can.

• National facility service and integrated facility management firms that manage cleaning for chains across many states
• Regional janitorial companies with overflow work or a new contract that outgrows their staff
• Franchise systems that assign accounts to franchisees and sometimes need backup crews
• Property management firms with a portfolio vendor that subcontracts by region
• Prime contractors on government cleaning contracts who need local partners or small business participation
• General contractors that need post-construction and final cleaning before handover

For each type, the entry point is different. National firms usually run a vendor onboarding portal. Regional companies hire through the owner or operations manager. Prime contractors on government work often post sources sought notices or reach out to small businesses before they bid. Our guide on how to win government cleaning contracts covers the registrations that public-sector primes look for.

Large contractors are accountable to their client for every site. Before they give you work, they want proof that you are real, insured and reachable. Have this package ready so you can onboard in days, not weeks.

• Certificate of insurance with general liability, workers' compensation and commercial auto, naming the contractor and often the end client as additional insured
• A janitorial or fidelity bond covering theft by employees
• W-9 and business license for your state and city
• Proof that your staff are your employees, with payroll and workers' compensation, not cash labor
• Background check policy, and willingness to run checks on every person who enters the site
• A simple capability statement: services, service area, crew size range, equipment, references
• A supervisor contact who answers the phone at night, because that is when cleaning happens

Most national firms use a vendor compliance platform that tracks insurance expiry and documents. When your certificate lapses, work orders stop automatically. Set a calendar reminder a month before every policy renews.

The check-in and reporting systems you will be asked to use

Contractors prove service to their client through check-in systems: a phone call from the site phone, a mobile app with location, a QR code scan or a work order portal. Missed check-ins are treated as missed service, even if your crew cleaned the building. Train every cleaner on the system for each site and check the reports weekly.

The national contractor usually tells you the rate, or asks for your price on a fixed scope. Either way, you need your own cost number before you answer. The contractor's rate is the client price minus their markup, so it will be lower than what you would charge the same building directly.

Build the rate from the bottom up, the same way you would for a direct contract:

• Measure the cleanable square footage and note floor types and restroom fixtures
• Apply a production rate for the facility type, for example 2,500 to 4,000 sq ft per hour for routine office cleaning
• Multiply by visits per month to get labor hours
• Add wages, payroll taxes, workers' compensation, supplies if you provide them, and travel time between sites
• Add a share of your overhead and the margin you need

If the contractor offers 1,600 USD per month for that store, you know before you sign that you lose money on every visit. You can decline, ask for a narrower scope, or ask whether they supply consumables. The janitorial bid calculator runs this math in a minute from square footage, facility type, frequency and local labor cost.

Supplies and consumables

Read the scope to see who supplies paper towels, toilet tissue, hand soap and can liners. On many national accounts the client or the contractor ships consumables, and you only restock. On others you supply everything and bill it at cost or inside the rate. Consumables in a busy restroom can move your cost by a large margin, so never assume.

The master subcontract agreement is written by the contractor to protect the contractor. You will rarely rewrite it, but you should know what you are signing. For the general structure of cleaning contracts, see our article on the commercial cleaning agreement.

• Payment terms: net 30, net 60 or net 90, and whether payment depends on the client paying the contractor first
• Chargebacks and penalties: how much is deducted for a missed service, a failed inspection or a late check-in
• Termination: usually termination for convenience on short notice, often 30 days or less
• Non-solicitation and non-circumvention: you may not approach the end client directly during the term and for a period after it
• Flowdown clauses: requirements from the master contract that pass to you, such as background checks, wage rules on government work and confidentiality
• Indemnification: who pays if a slip and fall or property damage claim arises from your work
• Insurance minimums and additional insured wording
• Rate changes: whether the rate can be adjusted when minimum wages rise

Pay particular attention to "pay when paid" or "pay if paid" wording. With pay if paid, you may never be paid if the end client does not pay the contractor. Ask for plain payment terms tied to your invoice date.

The biggest risks in janitorial subcontracting are cash flow and scope creep. A contractor paying on net 60 while you pay your crew every week means you finance two months of labor. Price that into your rate, or limit the share of your revenue that comes from slow payers.

• Keep subcontract revenue to a share of your business you could survive losing on 30 days' notice
• Invoice on the exact day the agreement allows, in the exact format requested, with work order numbers
• Photograph completed work at sites with frequent complaints, so you can dispute chargebacks
• Document every request that falls outside the scope and ask for a written work order before doing it
• Review the contractor's payment history with other vendors if you can, and talk to other local subcontractors
• Walk away from buildings where the rate does not cover wages after a minimum wage increase

Extra work is where subcontracting can pay well. Floor stripping and refinishing, carpet extraction, post-construction cleaning and emergency cleanups are often priced per job at better margins than routine service. Tell the contractor's regional manager which extra services you can take, and answer these requests fast.

• Build the onboarding package described above before you contact anyone
• Register as a vendor on the onboarding portals of the national facility service firms active in your area
• Contact regional janitorial companies and offer overflow capacity for specific nights or specific building types
• Reach out to prime contractors that win government cleaning contracts near you, especially if you hold a small business certification they need
• Answer every request quickly, because contractors often fill a site with the first qualified vendor who replies
• Start with one or two sites, perform flawlessly and ask for more in the same area

Once you have a site, the relationship is with the regional or area manager. Keep them informed, fix complaints the same night and make their job easy. Contractors add sites to vendors who never cause a phone call from the client.