To get commercial service contracts, start with small buildings near your existing work: offices, retail and restaurants run by owners or local property managers. Do one repair call well, have your insurance certificate, license and references ready, then offer a preventive maintenance agreement priced from the hours each visit really takes. Public bids come later, once you can meet their paperwork.
Commercial buyers aren't shopping like homeowners. They want someone who answers, shows up within the agreed time, documents the work and invoices cleanly. A small shop can do all of that.
Who to go after first
Your residential customers who run businesses. They already know your work. Ask.
Small, owner-run buildings. Restaurants, dental offices, retail strips, small offices. Decisions are made by one person, often fast.
Local property managers. One relationship can cover many buildings. They value a vendor who responds and reports.
General contractors on tenant build-outs. The install can lead to the service contract once the tenant moves in.
Public entities. Schools, cities and federal agencies buy through formal bids. To sell to the federal government, the SBA says a business must register in SAM.gov, get a Unique Entity ID, identify its NAICS codes and meet size standards (checked October 2026). State and local agencies run their own vendor registration. These bids are slower and more paperwork-heavy, so most small shops start private.
The bid package
Have this ready before you ask for the work:
- Certificate of insurance, with the limits commercial buyers commonly ask for (ask your agent what's typical in your area; see what insurance a contractor needs)
- W-9 and your license numbers
- Three references, ideally commercial
- Your written response time for emergencies and for routine calls
- A sample service report showing what a visit documents
- Your rates for work outside the contract
The response time is a promise. Only write one your schedule can keep. The service level agreements guide covers how to set response and resolution times you can hit.
How to price a maintenance contract
Price it from labor hours, not from a per-unit number you saw elsewhere. With visits per year v, on-site hours per visit h, drive hours per visit d, your rate per billable hour R, and included materials per year m (filters, belts):
Annual contract price = v × (h + d) × R + m
Walk the site before you quote. Equipment count, age, access (roof hatches, ceiling space, locked rooms) and the customer's hours change h more than anything. Build your rate from cost with the break-even labor rate calculator.
What makes contracts renew
Showing up in the window. Commercial customers schedule around your visits, sometimes opening early or clearing a space. Missing the window costs them money.
Reports after each visit. What you checked, what you found, what you recommend, with photos. This is what a property manager forwards to the owner.
Visits on schedule, not when you have time. Preventive maintenance slips first when the board gets busy. The preventive maintenance scheduling guide covers spreading visits so they don't collide with peak season.
Clean invoicing. Many commercial customers need a PO number, specific billing addresses and net terms. Ask at signing.
Watch the cash and the mix
Commercial work often pays on net terms, so you pay techs and parts weeks before the money arrives. Also, a single large account can become a dependency. The commercial vs residential guide covers payment terms and the mix that fits a growing shop. The service contract entry covers terms to include. Have a lawyer review any contract you sign or send.
What to take away
- Start with small, owner-run buildings and local property managers near your existing work.
- Have a bid package ready: insurance certificate, W-9, licenses, references, response times and a sample report.
- Annual contract price = visits × (on-site + drive hours) × rate + included materials.
- Renewals come from showing up on time, documenting each visit and invoicing the way the customer needs.
- Federal bids need SAM.gov registration first. Start private.
Common questions
How do small contractors find commercial clients?
Ask existing residential customers who own businesses, call local property managers, and introduce yourself to owners of small buildings near your current routes. A first repair call done well is the usual way in.
What do commercial customers look for in a service contractor?
Fast response, on-time visits, written reports, proper insurance and clean invoicing. Price matters, but missing a response time usually ends a contract faster than a higher rate.
Do I need to register on SAM.gov for commercial work?
Only for federal government contracts. The SBA lists SAM.gov registration as a basic requirement for federal contracting. Private commercial customers don't require it.
Should I offer a discount to win my first commercial contract?
Be careful. A contract priced below cost loses money on every visit for the full term. Price from your real hours and rate, and compete on response and reporting instead.