Should a small business outsource facility maintenance?

For most small businesses, yes: outsource the scheduled and specialist work, and keep the simple daily tasks with your own staff. A small space rarely needs a full-time maintenance person, and a vendor can bring the licensed trades, the tools and the cover for absences that one employee cannot.

The answer changes with the size of the site, the amount of work and your lease. Here is how to decide.

When outsourcing makes sense

• The work is intermittent. Heating and cooling service twice a year, a restroom leak, a door closer and a burned-out fixture do not add up to a week of work for one person.
• You need licensed trades. Electrical, plumbing and heating and cooling work need licensed tradespeople: no individual may work as a tradesman unless licensed, except when working under the supervision of a tradesman licensed in that specialty.^[3] A general maintenance employee without that licence cannot take these jobs on.
• You want cover. A vendor sends someone when the regular person is sick or on holiday.
• You are leasing. The lease often decides who handles the roof, systems and common areas, and a vendor can handle the items that are yours.

When to keep it in-house

Hire a person, or keep a staff member responsible, when there is steady daily work: a large site with constant small repairs, frequent opening and closing routines, or tasks that must happen on the spot. Even then, many businesses keep a vendor for the licensed and specialist work. Staff can do the simple things, such as replacing a bulb or reporting a leak early, and a checklist helps them do it consistently.

A common middle path

Most small businesses end up with a hybrid: staff handle the daily walk-through and report problems, a vendor handles scheduled service and repairs under a written agreement, and licensed trades come in as needed. This keeps costs tied to the work and puts one phone number behind each system.

Watch the employee-or-contractor question

If you hire an individual as an "independent contractor" to do your maintenance, the label may not hold. The IRS says the facts that show control and independence fall into three categories: behavioral, financial, and type of relationship,^[5] and that no one factor stands alone in making the determination.^[5] If you direct how and when the person works and supply the tools, that points toward an employee. A vendor business with its own crews, tools and insurance is a cleaner arrangement. If you are unsure, ask your accountant or the IRS rather than guessing.

What to check before you sign

Licence. If the work is valued at $1,000 or more, a valid Virginia contractor's license is required for the license category in which the contractor is to work.^[1] No person may engage in, or offer to engage in, contracting work in Virginia unless licensed.^[2] By hiring a licensed contractor, you become eligible to receive monetary compensation from the Contractor Transaction Recovery Fund in case of improper or dishonest conduct.^[1] Check the licence first.

Bids and references. DPOR advises getting at least three written bids or estimates using identical plans and specifications so you can compare prices and contractors.^[1] DPOR also advises asking the contractor for local references and calling them.^[1]

Who is responsible. Virginia's Maintenance Code says the owner of a structure shall provide and maintain all buildings, structures, systems, facilities, and associated equipment in compliance with this code unless it is specifically expressed or implied that it is the responsibility of the tenant or occupant.^[4] Read your lease so the vendor's scope matches what you are obliged to keep up.

Terms. The contract should include the total price, when payments will be made, and whether there is a cancellation penalty.^[1] Add the scope, the schedule, how quickly the vendor must respond to urgent problems, who supplies parts, and proof of insurance. A short first term is easy to renew and hard to regret.

Stop and call a pro if

• The problem involves electrical equipment, plumbing or heating and cooling systems. Use a licensed tradesman.^[3]
• The job is valued at $1,000 or more. Use a licensed contractor.^[1]
• You smell gas or smoke, or see sparks. Leave the area and call 911 or the utility from outside.
• A vendor will not show a licence number or a written scope. Look for another one.

Getting help in Virginia

For what a vendor typically costs, read how much facility maintenance costs for a small business in Virginia. Loclis lists DPOR-licensed businesses with their licence number and class: browse commercial services or read more commercial answers.

To get written bids for your own space, describe the work once and licensed local businesses quote it.