FM Contract Solutions provides organisations with expert evaluation of cleaning tenders.
Procurement of cleaning services is not as straightforward as it looks and making the wrong choice may expose organisations to unacceptable risk. Organisations can limit risks by employing expert evaluators to participate in and advise on evaluations of tender responses and interviews with short-listed contractors.
The Australian commercial cleaning industry has a chequered history in compliance with employment laws and obligations under the FairWork Act (2009). In 2016, the FairWork ombudsman conducted random audits of the cleaning industry and found that 33% of commercial cleaning companies were not paying their employees correctly. Whilst most companies are compliant, the use of sub-contract and labour-hire business models by those who attempt to flout employment law exposes their clients to significant risk and the Client may be liable to legal action and recovery of unpaid and under-paid wages under the Accessorial Liability provisions of the FairWork Act.
Even large organisations can find their reputation tarnished when their contractors break employment laws. FairWork Australia conducted a enquiry into the procurement of cleaners for Tasmanian Supermarkets which established widespread and significant underpayments to over 90% of cleaners in Woolworth Tasmanian Supermarkets. In 2018, the Australian Senate published a report into the Australian Cleaning industry entitled ‘Wage theft? What wage theft‘. Chapter 3 of this report, entitled ‘The exploitation of cleaners in Woolworths’ supply chain‘, noted that ‘ The FWO report ultimately concluded that Woolworths’ approach to procurement and the oversight of its cleaning contracts contributed to this culture of non-compliance.2′.
Cleaning contractors who utilise business models that maximise profits by underpaying workers have become expert at hiding them from potential and existing clients. The Senate report noted that ‘there will always be rogue, exploitative operators who choose to function outside of the legal, and most certainly voluntary, compliance frameworks.’
FM Contract Solutions cleaning contract evaluators know the cleaning industry back-to-front. They understand labour allocations, the relevant awards, contract costings, contract sustainability and the technical and operational aspects of cleaning and can uncover the hidden side of a contractor’s offer.
Don’t risk the reputation of your organisation. Contact FM Contract Solutions now for an obligation free discussion before you go to contract.