Methodology / worked examples
Clean Margin Desk guide
A recurring bid is easier to audit when area scope, visit frequency, labor production, payroll burden, travel, supplies, and overhead stay visible. This worksheet calculates a target price and then compares a measured labor month to the same contract price.
1. Build labor from the scope
For each area, multiply square feet by visits per month and operator-entered minutes per 1,000 square feet. Add travel hours once per visit. Burdened labor applies payroll burden to wage cost.
Labor hours = (sqft ÷ 1,000 × minutes ÷ 60 × visits) + (travel hours × visits)
2. Price to a margin target
Direct labor, supplies, travel, and the monthly overhead allocation form estimated monthly cost. A target contribution margin is applied to the whole monthly cost, not added as a markup percentage.
Suggested bid = monthly cost ÷ (1 − target margin)
3. Close the estimate loop
After a measured month, enter actual labor hours. A higher actual hour count lowers actual margin even when the invoice stays fixed. Investigate access, scope creep, travel, and production assumptions before changing a wage or margin target.
If a $2,850 contract costs $2,100 in the entered scenario, actual margin is (2,850 − 2,100) ÷ 2,850 = 26.3%.
Limits and assumptions
- Production rates and costs are operator-entered assumptions, not market benchmarks or guaranteed staffing times.
- The actual-margin view holds supplies, travel, and overhead at the estimate; enter a revised scope to model changes.
- This is not payroll, tax, employment, contract, or legal advice and does not create a proposal or customer signature.