Janitorial Service suppliers will acquire new capital equipment when starting a new contract or renewing an existing agreement. The cost for new equipment is normally amortized over the life of the contact and represents on average  1% to 3% of total contact value.  A 3 year contact with an annual value of 1 million dollars would require a capital investment of approximately $30,000 to $90,000. Some accounts may exceed these amounts if large scale high output scrubbers / sweepers or robotic equipment presents an option to optimize the productivity.  Although the unit price for some units exceeds $50,000 the return on investment can be less than 12 months making it an obvious investment choice 

 

1. Equipment Inventory

It is also important to include equipment pricing sheets with all RFP or budget templates to ensure you have full visibility on the following key items.

  • Equipment item description
  • Manufacturer name
  • Model Number
  • Unit Price
  • Number of Units
  • Cost Per Unit
  • Amortization Schedule - 36 or 60 months
  • Annual Maintenance Costs

2. Environmental Certification

Equally important to consider is the environmental certification/rating on the equipment/machinery to verify the following key elements. Most equipment manufacturers will display key environmental certification rating on the equipment.

Key considerations

  • Emissions
  • Water consumption
  • Dust filtration
  • Energy rating

JAN-029 - Ver 1.1 (Apr 23)

Links:

Equipment Amortization Schedule

Confidential & Proprietary | 2023 CBRE, Inc.

Equipment Investment

Janitorial

Supplier Investments

Contracting

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