Cost spreadsheets for continuous services: getting labor charges right

In labor contracts, the evaluation committee analyzes the spreadsheet, not the final price. See how to build each module, where the collective bargaining agreement comes in, what cost renegotiation is and the mistakes that get bids disqualified.

Published Aug 25, 2026 · Updated Oct 23, 2026 · Busca Licitações Team · 11 min read

This text was written for companies registered in Brazil. Foreign suppliers should also read how foreign companies can bid in Brazilian public tenders.

In government contracts for cleaning, front-desk and building access, security guards, reception, administrative support and other services with exclusively dedicated labor, the price is not just a number on the screen. It is the result of a cost breakdown and pricing spreadsheet (planilha de custos e formação de preços) that the government analyzes line by line — and that has to add up.

This is the most important difference between bidding to supply products and bidding for continuous services. With products, you can put your margin wherever you like. In labor-based services, every cent has to be justified in a module of the spreadsheet, and bids that only "survive" on impossible numbers are disqualified as unfeasible (inexequibilidade).

Why the spreadsheet exists

The purpose is twofold. For the government, it makes it possible to check whether the price actually covers wages and labor charges — avoiding the classic scenario in which the contractor goes bankrupt mid-contract and leaves workers unpaid, with secondary liability falling on the government agency. For the market, it creates a common floor: everyone starts from the same collective bargaining agreement (convenção coletiva) and the same statutory charges.

The practical consequence: in continuous services, competition happens in indirect costs and margin, and in management efficiency — not in wages, which are set by the agreement covering the occupational category.

Module 1 — Compensation

The starting point is the standard wage (salário normativo) set by the collective bargaining agreement (CCT) for the category and region where the service will be provided. It is not the minimum wage, nor what you pay today: it is the wage floor of the applicable CCT. Add the premiums owed for the post — hazardous or unhealthy work premiums, night-shift premium, regular overtime when the tender notice (edital) provides for it.

A frequent mistake: using the wrong agreement. Cleaning services in a hospital may follow a different CCT than cleaning in an office building, and the union's region matters. Check the agreement's registration number and attach it when the tender notice requires it.

Module 2 — Labor charges and benefits

This is where most mistakes happen, and the module is split into three sub-modules.

Social security charges and FGTS. Employer social security contribution (INSS), RAT (occupational accident insurance rate) adjusted by the company's FAP (accident prevention factor), third-party contributions (the "S System" training and social service entities) and FGTS (the employee severance fund). RAT/FAP varies according to the activity and the company's accident history — using a generic rate distorts the spreadsheet.

13th-month salary and vacation bonus. The corresponding monthly provisions, with the charges levied on them.

Daily and monthly benefits. Transportation vouchers (minus the employee's legal share), meal allowance as set by the CCT, health insurance when required, life insurance, uniforms and personal protective equipment (PPE). Everything the agreement mandates goes here — and in many cases the agreement requires more than the CLT (Brazil's labor code).

Module 3 — Termination provision

Service contracts end, and when they do there are costs: notice period, whether worked or paid in lieu, the FGTS termination penalty, prorated vacation and 13th-month salary, and the charges on those amounts. The spreadsheet provisions for this every month, because the cost exists even if the cash goes out much later.

Underestimating this module is the classic source of the contract that shows a profit on paper and a loss at close-out.

Module 4 — Cost of replacing absent staff

When the tender notice requires the post to be covered at all times, someone has to replace the regular employee during vacation, leave or legally excused absences. This cost — meal-break coverage, legal absences, paternity leave, accident leave, vacation — is calculated as a percentage of compensation and goes into the spreadsheet.

If the tender notice does not require coverage, the module can be reduced. Reading that clause carefully changes the final price significantly.

Module 5 — Miscellaneous supplies

Materials and equipment the contractor provides: cleaning products, toilet paper, soap, machines, tools, protective equipment, equipment depreciation, maintenance. In cleaning contracts, this module is usually significant and it is where there is real room for efficiency — buying well makes a legitimate competitive difference.

Module 6 — Indirect costs, taxes and profit

This closes the spreadsheet. Indirect costs cover head-office overhead: supervision, administrative payroll, rent, systems, travel for your own supervision visits. Profit is your margin. And taxes are levied on revenue — ISS (municipal services tax) according to the municipality, PIS and Cofins (federal taxes on revenue) according to the tax regime, and the Simples Nacional (simplified tax regime) rate where applicable.

Pay attention to the order of calculation: taxes are levied on the selling price, not on cost. Applying the percentage to the wrong base distorts the result and will prompt the committee to open an inquiry.

Posts, working hours and shifts: the contract's unit of measure

Continuous services are measured in posts, not people. A 44-hour-a-week post on a 5x2 schedule (five days on, two off) takes one employee; a 24-hour security post on a 12x36 shift (12 hours on, 36 off) takes four. Confusing the two distorts the entire spreadsheet, because the cost of a post is the sum of the employees needed to cover it.

The tender notice defines the shift pattern, and each one has implications. 12x36 is common in building access and security, and carries a night-shift premium on shifts that run into the early morning hours. 5x2 is the standard in cleaning and administrative support. Schedules with work on Sundays and holidays require specific provisions.

Also check the productivity required in cleaning contracts: the metric is usually square meters per cleaner, varying by type of area — office, hospital, outdoor, windows and frames. The lower the required productivity, the more posts for the same area, and the higher the cost. This is one of the points where it is worth submitting a request for clarification when the tender notice is ambiguous.

Cost renegotiation and price adjustment: what protects your margin

Continuous service contracts last for years, and costs change. There are two different mechanisms:

Cost renegotiation (repactuação) deals with labor costs and follows the category's annual base date (data-base): when the new collective bargaining agreement raises the wage floor, you request renegotiation by demonstrating the change with the new CCT and a revised spreadsheet. It is a right, not a favor — but it depends on a timely, documented request.

Price adjustment (reajuste) deals with the other costs and follows an index set in the contract, applied periodically according to the clause.

Anyone who does not keep track of the base date loses money silently: wages go up in January, renegotiation is only requested in July, and the gap comes out of your pocket.

Unfeasibility: when a low price sinks the bid

Unlike product purchases, in labor-based services unfeasibility is assessed objectively: if the spreadsheet does not cover wages and statutory charges, the bid does not hold up. The committee may open an inquiry for you to demonstrate viability — and the demonstration has to be arithmetic, not rhetoric.

There is no point claiming "I'll make up for it with scheduling" or "I run a lean operation" if the labor charges module is below what the law requires. Labor charges are the law, not a management choice.

An example spreadsheet structure

To make this concrete, here is how the modules chain together for any given service post. The percentages vary according to the activity, the agreement and the tax regime — what matters here is the sequence of reasoning.

The point to watch is module 6: taxes are levied on the final price, which requires a gross-up calculation — you divide the cost by one minus the sum of the tax rates, as in any pricing exercise. Calculating them on top of cost underestimates the tax and eats into your margin, exactly as explained in how to price a bid.

Monthly oversight: what the agency will ask for

Contracts with dedicated labor are closely monitored, and it is worth knowing this before you sign. Every month, agencies typically require: payroll, proof of wage payments, paid FGTS and social security slips, proof of delivery of transportation and meal vouchers, time records and a list of the employees assigned.

Many contracts also have a linked deposit account (conta-depósito vinculada), in which part of the amounts relating to provisions is held back and only released upon proof of payment. This protects workers and the agency, but it affects your cash flow — and must be factored into your financial planning, not discovered afterwards.

Late delivery of this documentation usually suspends payment of the invoice. Set up the routine from the first month: companies that treat the compliance package as a last-minute task end up with invoices stuck and working capital tied up.

Mistakes that get bids disqualified

• Using the wrong collective bargaining agreement — wrong category or region;
• Leaving out mandatory benefits set in the CCT;
• A generic RAT/FAP rate instead of the company's actual rate;
• An undersized termination provision;
• Ignoring the replacement module when the tender notice requires the post to be covered;
• Applying taxes to cost instead of the selling price;
• A spreadsheet that does not match the bid amount;
• Failing to attach the collective bargaining agreement when required.

Where real competitiveness lies

If wages and labor charges are the same for everyone, how does one company beat another? On four fronts, and it is worth knowing them because they determine whether or not you have an edge in that tender.

Managing absenteeism. The replacement module is calculated as a percentage, but the actual cost depends on the company's day-to-day operations. Those with low absenteeism and well-organized schedules spend less than they provisioned; those who manage poorly spend more.

Purchasing supplies. In cleaning, the materials module is significant. Buying well, at scale and from good suppliers, creates a legitimate price difference without touching any labor rights.

A lean administrative structure. The indirect costs module spreads head-office overhead. A company with many contracts in the same city dilutes supervision and travel costs; a company with a single distant contract carries it all alone.

Low turnover. Every dismissal triggers the termination provision and costs training. A stable team is a direct saving — and, not by coincidence, it is also quality as perceived by the contract inspector.

Note what is not on the list: paying less than the agreement, cutting benefits or paying contributions late. Besides being illegal, it is unsustainable — monthly oversight detects it and the contract is terminated, with the corresponding sanctions.

Frequently asked questions

Can I price wages above the agreement?

You can — the floor is a minimum, not a maximum. But it makes your bid more expensive, and the government does not pay extra for generosity. If your pay policy is higher, the cost comes out of your margin.

What if the agreement changes after I submit the bid?

That is exactly the scenario for cost renegotiation, counted from the base date. Keep the CCT in force on the date of the bid — it is the reference for the comparison.

Can the government require a spreadsheet for product purchases?

It can ask for a cost breakdown in specific situations, especially when investigating unfeasibility. The detailed module-by-module spreadsheet, however, is typical of services with dedicated labor.

Is it worth bidding for continuous services as a small company?

It requires working capital to fund payroll before you get paid, and rigorous labor management. For those just starting out, it is usually better to establish yourself in the supply of goods first — see the first-steps guide.

Who is liable if I do not pay the employees?

The company, obviously — but the agency has secondary liability in certain situations, which is why it checks payroll and contributions every month. Expect strict oversight.

Outsourcing and what the law changed

It is worth setting out the legal context, because it explains why the spreadsheets are so strict. Through outsourced services, the government does not hire people — it contracts for a result. The company is the one that employs, directs and pays; the agency oversees compliance with the contract and does not give orders to the workers.

This boundary is taken seriously. Direct interference by the inspector with an employee — scheduling them, disciplining them, assigning tasks outside the scope — creates the risk of an employment relationship with the government being recognized, which the Constitution prohibits except through a public civil-service exam (concurso público). That is why well-drafted contracts state that communication goes through the contractor's designated representative (preposto).

For the supplier, there is an important practical consequence: appoint a competent representative and formally notify the agency of their name. They are the one who responds day to day, receives requests and keeps the inspector from dealing directly with the employees. Contracts that work out almost always have a good representative; the ones that go sour usually have scattered, informal communication.

How to prepare

Build a spreadsheet template with parameterized modules: change the standard wage and all the charges recalculate. Keep the collective bargaining agreements for the categories and regions where you operate, with the base dates marked on your calendar.

Before bidding, check three things in the tender notice: which agreement applies, whether full coverage of the post is required and which supplies are the contractor's responsibility. Those three answers determine most of the cost.

To see what is open, follow the tenders for cleaning and maintenance and for security services — and read two or three complete tender notices before bidding on your first. The learning curve is steep, but the contracts are long and stable for those who master it.

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