For instance, you can have internal staff (that is,employees) on contract as well.

Size: px

Start display at page:

Download "For instance, you can have internal staff (that is,employees) on contract as well."

Elmer Stafford
6 years ago
Views:

1 CONTRACT CLEANING Contract cleaning is a growing industry in India at present. In Europe it is a very big industry and nearly all offices and airports are cleaned in this manner. The contract cleaning business has developed so much universally that hotels sometimes contract out whole housekeeping department. DEFININING OUTSOURCING AND CONTRACTS Outsourcing is a conscious business decision to move internal work to an external provider. A contract can be defined as an agreement between two parties negotiating a business deal. Both these terms are now being used interchangeably. However, while all outsourcing involves a contract, all contracts are not necessarily related to outsourcing. For instance, you can have internal staff (that is,employees) on contract as well. Some of the first processes to be outsourced in hotels include janitorial, security, and catering services.

2 WHEN ARE OUTSOURCEDSERVICES CONSIDERED? The services of contract cleaners will be used in two broad types of situation: 1. To carry out general accommodation and cleaning services where management considers that the use of a specialized company will be more economic, management and staff do not have sufficient expertise and/or it is preferably not to be responsible for the day to day administration of this aspect of their activities. 2. To carry out specialized or periodic cleaningtasks where specialized skills and equipment areunavailable and it is uneconomical to teach staffspecialized skills or purchase specializedequipment. Contract Services in housekeeping Hotels may go in for the following types of outsourcing contracts: Complete cleaning programme, with all the work and responsibility undertaken by the service provider. Regular, selected cleaning within an establishment to assist the existing housekeeping staff, for example, the cleaning of public areas at night.

3 Periodic services to assist existing housekeeping operations such as window cleaning, cleaning of walls and ceilings, cleaning of carpets.hiring contracts with various rental firms for linen, equipment, conference utilities, etc. Leasing contracts for equipment, furniture, andfurnishings, which are drawn up for a given number of years. For furniture and upholstery, these are usually written for a 5-7 year lease period; for soft furnishings, the lease is generally for 3 years. The entire housekeeping operations of the property put out on contract by a hotel, with the whole gamut of housekeeping activities becoming the responsibility of the contractor. Consultancy services, where a housekeeping expert visits the hotel and guides the existing staff on achieving professional standards. The following are some areas of housekeeping where services may be offered on contract basis; Cleaning------deep cleaning, public area cleaning, cleaning of hard to reach areas, polishing of different surfaces, carpet and floor cleaning or full cleaning services. Linen hires-----entire hotel linen or specialized linen like banqueting items.

4 Equipment and furniture hire. Laundry-----complete or part. Flower arrangements and decorations Pest control Horticulture and landscaping Eco-friendly garbage disposal Other services such as shoe-polishing machines,guest amenities such as hangers, etc. Hiring Contract Providers These are the steps the management should follow once they have decided to outsource a particular service for the hotel: 1. Put out tenders to at least three contractors and compare quotes. 2. Check out their existing market credibility by contacting previous/current clients. 3. It is very important to get reliable referrals from other hotels, members of professional organizations or business associates. 4. Check references thoroughly and visit other job sites. 5. Check whether the contractor is registered and licensed under The Contract Labour Act 1970 of the Government of India. 6. Preferably select a contract provider with a local office.

5 7. Check on the degree to which the contract provider undertakes supervision of the work. 8. Prepare detailed contract specifications, indicating the exact number of working hours, areas of operations and responsibility, processes to be used, and frequency of service, time-table, and any special projects. Some guidelines a hotel can follow to make its outsourcing contracts a success are provided below: Greet the contracted workers when they arrive and review the job parameters. Visit the job site shortly after work has begun to ensure that the hotel s expectations are being met. Give the project a spot-check and a rundown at completion to review the contractor s work and to ensure that specifications are being met. Keep equipment and supplies belonging to the hotel and those belonging to the contractor separate. Consider not paying in advance. Contract Specification It is essential that the executive housekeeper provides the service provider with a clearly defined and detailed specification of the work to be done how it is to be done, and so on. It is from this that the service provider draws up the contract.

6 Contract specifications should be carefully worded and should necessarily cover the following points: The period or duration of the contract, date of signing the contract, and a provision for regular review of the specifications. The schedule of areas to be serviced and the frequency with which a job is to be done. This is important, as the level of cleanliness depends on the time lapse between successive cleaning processes. For example, horizontal surfaces may need daily dusting and vertical can do with weekly. A description of the method, equipment, and materials required, as well as the hotel s quality expectations, including appropriate penalty and cancellation clauses. A provision for adequate supervision, listing the hotel s requirements specifically. A provision for storage areas, lockers and perhaps accommodations for the contracted staff. Specified frequencies of inspection agreed upon with the service provider. The remuneration for the job, the terms and conditions of payment, and a termination procedure. Both parties should sign these contract specifications.

7 Pricing of contracts The basis of payment for outsourced services may include one or more of the following: A management fee for consultancy services. A unit rate agreement A fixed period cost. A cost for the job plus a percentage of profits. A cost for the job plus a fixed fee. Unit Rate Agreements Most contracts are agreed on a unit- rate basis. The executive housekeeper provides details of the area to be covered and the frequency of the job, and asks the service provider for the costs. The contractor measures the area and calculates the cost thus Man- hours = areas x time x frequency For example, if a contracted firm has to clean five different areas, taking two hours each, twice a week, then man-hours will be calculated as: Man-hours = 5 x 2 x2hours = 20 hours To the cost of wages (for workers and supervisors), the firm adds costs of equipment, agents, and supplies, plus over heads and profits, and then quotes a price.

8 Cost Plus Fixed Fee Better than the above mode of pricing is one in which the contractor is paid for the costs of the job and given a fixed fee. In this case, as there is no point in the contractor s cutting costs, as he has a guaranteed profit margin. With the costs-plus-fixed fee type of contract, the executive housekeeper specifies the staff, equipment, and so on, to be employed. The specifications should be the same as for in-house labour and the housekeeper should compare the contractor s bid with her own in-house cleaning costs. Advantages of using contract services There is no capital outlay for equipment, so that money is available for investment in other purposes. (In most cases, the contractor provides all supplies and equipment.) Contracts alleviate the necessity of buying or hiring specialized equipment. The difficulty of finding, training, organizing, and supervising staff is passed on to the service provider. Good contract firms provide skilled labourers, well trained in their area of expertise. Extra work may be carried out at certain times without increasing the basic staff. Accurate budgeting can be done for a fixed period.

9 Contractors provide uniformed workers and take responsibility for all their wages and benefits. Contract services alleviate many of the problems between the management and workers union. Contract services can generally be terminated faster and more easily than the services of regular employees, while reducing the likelihood of employment claims and lawsuits. Disadvantages of using contract services Contracting weakens the authority of the management over the quality and loyalty of the staff. Workers brought in by the contract providers are not representatives of the hotel and may not have the requisite skills for guest interactions, or the same pride in their work or job satisfaction. There is loss of flexibility in effecting changes, as the housekeeper no longer controls the entire operations. There is a natural tendency among contractors to use cheaper products, which may be of poor quality and may damage the building and its contents in the long term. There may be poor supervision, with the standard of work falling below par as a result. Workers may not show up within the designated time frame. There may be problems regarding security.

10 There may be problems regarding liaison and cooperation between departments. Contract cleaners may not meet the hotel s standards of quality. One of the reasons for this is the sudden growth of contract cleaning firms, resulting in cut-price tenders being offered and accepted which do not enable the contractors to employ a sufficient number of employees of the right calibre to do the job properly.

Planning & Organising Housekeeping Operations

Planning & Organising Housekeeping Operations Housekeeping is a 24/7 operation. It is imperative that the executive housekeeper plans and organizes the work of the department for smooth and efficient functioning.