Commercial contracts typically have 2-5x higher average ticket than residential work and come with maintenance agreement opportunities that generate recurring revenue for years. The tradeoff: commercial is harder to break into and requires more infrastructure.

Requirements for Commercial Work

Insurance

Commercial work requires higher insurance limits:

  • General liability: $2M-5M (vs $1M for residential)
  • Workers comp: Required in all states
  • Commercial auto: Higher limits for larger vehicles
  • Umbrella policy: $1M-5M additional coverage

Certifications

Depending on trade and commercial segment:

  • OSHA 30-hour certification (often required)
  • Trade-specific commercial certifications
  • Background checks for techs (many commercial clients require this)

Finding Commercial Opportunities

Property Management Companies

The fastest path into commercial work. Property managers need reliable contractors for multi-unit buildings, retail centers, and office buildings.

How to approach:

1. Identify the top 10 property management companies in your area

2. Send a capability letter with your services, insurance, and references

3. Follow up with a phone call

4. Offer to handle a small emergency call to prove your reliability

General Contractors

GCs subcontract trade work on commercial projects. Build relationships with 3-5 GCs who handle commercial work in your area.

Facility Maintenance Programs

Large chains (restaurants, retail, healthcare) use national service providers but also contract with local contractors for specific needs.

Bidding Commercial Work

Relationship-based selling accounts for 70% of commercial contract wins - not low bidding. The cheapest contractor isn't usually the one who gets the contract. Reliability, response time, and professionalism win.

Commercial bids should include:

  • Detailed scope of work
  • Timeline and milestones
  • Insurance certificates
  • References from similar projects
  • Maintenance agreement options

Win commercial contracts

Get Started

The Long Game

Commercial work takes 3-6 months of relationship building before the first contract. Don't abandon residential while building commercial. Start with 1-2 commercial accounts and grow from there as you build your reputation and infrastructure.

Worked Example: Commercial vs Residential Revenue

Residential: average ticket $450, 5 jobs/tech/day = $2,250/tech/day. Commercial: average ticket $1,200, 3 jobs/tech/day = $3,600/tech/day. Revenue increase: 60% per tech. One commercial maintenance contract (20-unit apartment building): $2,500/month recurring = $30,000/year. 5 commercial contracts: $150,000/year in recurring revenue. Insurance upgrade cost: $3,000-5,000/year additional. Commercial marketing cost: minimal (relationship-based). Net ROI of adding commercial: $145K+ in year one from 5 contracts.

What Not to Do

  • Don't bid commercial work at residential margins. Commercial has different cost structures: higher insurance, more complex compliance, and longer payment cycles. Price accordingly or you'll lose money on volume.
  • Don't skip the insurance upgrade. Operating commercial with $1M GL is a lawsuit waiting to happen. $2M-5M is standard. Check requirements before bidding.
  • Don't pursue commercial without references. Property managers call references. Start with 1-2 smaller commercial jobs to build your commercial portfolio before approaching large property management companies.
  • Don't abandon residential to chase commercial. Commercial takes 3-6 months to develop and has longer payment cycles. Keep your residential base generating cash while you build commercial relationships.

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