PROWESS

Guide

How to read a facility management proposal.

Plain-language checks for housekeeping, security, and IFM quotes in Bengaluru.

MSL

By Manjunath S L, Co-Founder & CEO, PROWESS15 years in Bengaluru facility operations

Published Last reviewed 5 min read

Most facility management proposals in Bengaluru look similar on the cover and differ wildly underneath. Two vendors can quote the same office at amounts ₹50,000 apart every month — and the admin who signs the contract often can't tell which quote is honest and which one is hiding costs that will reappear later as 'revisions.'

This guide walks through what every fair IFM proposal should contain, what a transparent margin looks like, and what questions to ask before you sign. It applies to any vendor in Bengaluru, including us.

Practical takeaways

  • Ask for a full line-item breakdown before comparing rates.
  • Expect margin transparency in the 8–12% range.
  • Validate PF, ESI, and CLRA evidence before sign-off.
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What a fair proposal actually contains

A fair proposal itemizes the cost stack so you can see what you are paying for. Every line below should be present and stated as a number or a percentage — not rolled up into a single inclusive rate.

The reason is simple: the ratio between wages and overheads tells you whether the vendor is paying people the floor, above it, or under it, and that number determines whether the team will stay on your site past the first quarter.

Wages
— base salary per role, per shift, aligned with the Karnataka minimum wage schedule.
Provident Fund (PF)
— 13% employer contribution, shown as a separate line.
Employee State Insurance (ESI)
— 3.25% employer contribution where applicable.
Statutory bonus
— minimum 8.33% of wages, annual provisioning.
Gratuity provisioning
— 4.81% of wages, set aside monthly.
Leave and absence provisioning
— typically 8–12% of wage cost to cover weekly offs and leave replacements.
Uniforms and safety equipment
— one-time issue plus annual recurring.
Supervision overhead
— supervisor cost allocated to the deployment.
Administrative and compliance overhead
— payroll, audit, HR, and background verification.
Margin
— the vendor's operating profit, typically 8–12% for transparent vendors in Bengaluru.

If any of these line items is missing or rolled into a single 'CTC' or 'all-inclusive rate' without breakdown, ask for the breakdown. A vendor who cannot itemize is either hiding margin or not running compliant payroll.

The margin conversation

The single biggest signal of a transparent vendor is whether they will tell you their margin.

A fair Bengaluru IFM margin sits between 8% and 12%. 8% represents thin-margin, high-volume, stable sites. 12% represents premium-service sites that demand supervisor intensity, faster escalation, and tighter compliance. Anything above 15% without a clear reason — specialized equipment, hazardous environment, night-heavy operations — usually means margin is being hidden inside other line items.

PROWESS operates in an 8–12% margin range. We disclose it on every proposal.

Ask every vendor to state their margin percentage. The ones who refuse are telling you something.

The compliance questions that protect you

Under the Contract Labour (Regulation and Abolition) Act, 1970, you are jointly liable for your vendor's statutory compliance.

  • Can you share your CLRA license number?
  • Can you share last three months of PF challan copies?
  • Can you share last three months of ESI challan copies?
  • Do you maintain a wage register under Form XVII (or digital equivalent)?
  • Are uniforms, boots, and ID cards provided at your cost or deducted from wages?
  • What is your average attrition rate for deployed staff, and how is continuity protected?

A compliant vendor will answer all six without hesitation. If any answer is 'we'll send that later,' treat it as a no.

What to compare when you have multiple quotes

When you have two or three proposals and they all look different, comparing them directly is harder than it should be.

Vendors package their numbers differently on purpose, and the cover rate almost never tells you who is actually cheaper over twelve months. Here is how to normalize them so a procurement committee can decide without a fifth round of clarifications.

Per-head monthly cost
— divide the total monthly amount by total headcount. Compare this number across quotes. It is the cleanest apples-to-apples metric.
Supervisor ratio
— how many frontline staff per supervisor? 1:8 is premium, 1:10 is standard, 1:12 is thin.
Compliance inclusions
— does the quote explicitly include PF, ESI, bonus, and gratuity? If one vendor excludes them and another includes them, the cheaper quote is not cheaper.
Margin transparency
— has the vendor stated their margin? If yes, you can compare. If no, assume it is on the higher end.
Escalation clauses
— what is the annual price increase? Karnataka minimum wage revises annually. A quote with no escalation language will revise later anyway, usually abruptly.

Red flags

Things that should make you walk away from a proposal.

  • "All-inclusive rate" with no breakdown.
  • Promises of zero attrition or 100% compliance without documentation.
  • Missing CLRA license or reluctance to share it.
  • Wages quoted below the current Karnataka minimum wage schedule.
  • Margin not disclosed, and refused when asked.
  • Testimonials or client logos that cannot be verified with a phone call.
  • Urgency pressure to sign without a site visit.

Frequently asked questions

What is a fair per-head monthly cost for housekeeping in Bengaluru?

A fair all-inclusive range is ₹22,000–₹30,000 depending on shift pattern and supervisor intensity. Below ₹22,000 usually indicates non-compliant wages; above ₹30,000 without specialist work indicates hidden margin.

Should PF and ESI be included in the quoted rate, or billed separately?

Included. Any vendor who quotes a base rate and bills PF or ESI separately is setting up a surprise revision in month two.

What is the typical vendor margin in Bengaluru IFM?

8–12% for transparent vendors. Above 15% without specialized work usually means margin is being hidden inside other line items.

How many housekeepers do I need for a 25,000 sqft corporate office?

As a baseline, roughly 3 housekeepers plus 1 supervisor for single-shift operations, scaling with pantry load and shift pattern. Our free planning tool at /plan shows exact ratios.

Can I audit my current vendor's compliance filings?

Yes. Under the Contract Labour Act, you can request PF challan, ESI challan, wage register, and CLRA licence copies every month.

Want us to walk your site?

If you've read this far, you're taking the evaluation seriously. We'd be glad to walk your building, meet your admin team, and send you a scoped proposal that includes every line item above — with the margin disclosed.

Book a site visit →Or try our planning tool →

Questions or disagreements? Email us at hello@prowessifm.com — we update this page when the market changes.

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