By Doug McMurtrie 

Winning a new contract is only half of the battle in commercial cleaning. The real challenge is maintaining profitability over time. Many contractors start strong, only to find that margins quietly erode as the work continues. By the time the issue becomes obvious, the contract is already underperforming. 

Margin loss in cleaning contracts rarely comes from a single mistake. More often, it results from small operational gaps that compound over time. Identifying where money is lost, and putting systems in place to catch it early, is essential for long-term success. 

One of the most common sources of lost margin is untracked scope expansion. A client asks for an extra task. A supervisor authorizes additional cleaning to address a complaint. A one-time request becomes part of the routine. 

Over time, these additions become normalized, even though they were never included in the original contract. 

Contractors often hesitate to push back, especially on established accounts. The result is more labor being delivered without corresponding revenue. 

Catching this early requires clear documentation. The scope of work should define not just what is included, but what falls outside of the agreement. When additional tasks are requested, they should be tracked and reviewed regularly. Even a simple log of out-of-scope work can reveal patterns that would otherwise go unnoticed. 

Rework Issues 

Rework is one of the most overlooked drains on profitability. When tasks are not completed correctly the first time, labor must be reinvested to fix the issue. That second pass is rarely billable. 

Rework often stems from inconsistent training, unclear expectations, or lack of supervision. In some cases, crews are simply rushing to meet unrealistic time constraints. 

The impact is not always obvious at the account level, but it accumulates across multiple sites. 

Contractors can reduce rework by defining clear standards for task completion and verifying those standards through structured inspections. Tracking rework frequency (even informally) helps identify whether the issue is isolated or systemic. 

Bad Production Rates 

Many contracts are built on assumed production rates that do not reflect actual working conditions. Changes in occupancy, traffic patterns, or facility use can all affect how long tasks take. 

When labor assumptions are off, crews either fall behind or require more time than budgeted. In both cases, margins suffer. 

This issue is especially common in long-term contracts that have not been reevaluated. What worked a year ago may no longer be realistic today. 

Regularly comparing projected labor hours to actual time spent on site is one of the simplest ways to identify this gap. When discrepancies appear, contractors can either improve efficiency or revisit the contract terms. 

Inefficient Scheduling 

Lost margin often shows up in how labor is deployed. Crews may be overstaffed during slow periods and understaffed during peak times. Travel time between locations may be higher than expected. Overtime may become routine instead of occasional. 

Industry data from ISSA shows labor represents the largest share of cleaning costs. As a result, even small inefficiencies in staffing, scheduling, or execution can have an outsized impact on overall contract profitability.  

Improving scheduling requires a closer look at how work is distributed. Aligning staffing levels with building usage, consolidating routes where possible, and reducing unnecessary overtime can have a measurable impact on profitability. 

Even small adjustments in scheduling can add up over the course of a contract. 

Supervisors play a critical role in maintaining quality, but their time is often not accounted for at the contract level. When supervisors spend significant time addressing complaints, filling staffing gaps, or correcting mistakes, those costs reduce overall margin. 

High levels of supervisory involvement are often a sign of underlying instability in the operation. Frequent issues, unclear expectations, or inconsistent performance all increase the need for intervention. 

Reducing this burden starts with strengthening frontline execution. Clear processes, better training, and consistent standards reduce the need for reactive management. 

While labor is the largest cost in cleaning contracts, supplies can also contribute to margin loss when not managed properly. Overuse, improper dilution, and lack of inventory control all lead to unnecessary expenses. 

These costs are often small on a per-incident basis but can become significant over time. In many operations, inconsistent dilution practices and poor inventory visibility leads to wasted product and higher-than-expected supply costs. 

Simple measures such as standardized dilution systems, clear usage guidelines, and periodic inventory checks can help control this category without affecting performance. 

Perhaps the biggest reason margin loss goes undetected is lack of visibility. Contractors may review financial performance at a high level but miss early warning signs at the account level. 

Key indicators to watch include differences between budgeted and actual labor hours, recurring client complaints, increased rework or repeat tasks, rising overtime, and frequent schedule adjustments. 

When these indicators are monitored regularly, they provide insight into where issues are developing. 

Waiting until a contract is clearly underperforming often means the problem has been building for months. 

Preventing margin loss is not about eliminating every inefficiency. It is about identifying patterns early and addressing them before they grow. 

Contractors can improve performance by documenting and reviewing scope changes, defining and verifying task standards, comparing labor assumptions to actual performance, evaluating scheduling and staffing patterns, and tracking key operational indicators. 

These practices do not require complex systems. What matters is consistency. 

Building Stable Contracts 

In a competitive market, pricing pressure is constant. Contractors often focus heavily on winning new business, sometimes at the expense of managing existing contracts. However, long-term success depends on maintaining profitability after the contract is signed. 

By paying attention to where money is lost and taking steps to catch those issues early, contractors can protect their margins and build more stable operations. 

Cleaning contracts do not usually fail all at once. They decline gradually as small inefficiencies accumulate. The contractors who recognize this—and respond early—are the ones who maintain both performance and profitability over time. 

Doug McMurtrie is the owner of Complete Care Maintenance, a New Jersey–based commercial cleaning and facility services company serving office, medical, and industrial facilities. With hands-on experience in operations, crew management, and contract performance, he focuses on improving consistency, protecting margins, and strengthening long-term client relationships. Learn more at: https://www.completecaremaintenance.com/ 


posted on 5/22/2026