BONUS CHAPTER Part C-: This is a bonus chapter of “The Complete Guide to Starting a Cleaning Business.” Many business owners get into avoidable troubles when carrying out their business simply because they never took their time to study their industry, and then come up with contract terms and conditions. You can run at a loss and your business might even fold – up if you make certain mistakes whilst working for your client; you might be sued for negligence or even for circumstances beyond your control.
In order to avoid unnecessary court cases or embarrassments as an owner of a commercial cleaning company, you are required to draft your own contract terms and conditions; contract clauses. Of course, you might not be able to do it yourself, but you can pay an attorney to help you draft one. Lawyers, especially industrials lawyers are good at drafting terms and conditions but you might have to tell them your expectations. The essence of contract clauses is to protect you in case things go wrong when working for your clients.
Contract clauses are designed to clearly define the rights, duties and duties that each party has under the contract terms. It is important to state that your contract clauses must be agreed and signed by both parties, as such, you must ensure that you put your potential clients into consideration before drafting your own contract clauses et al. Now let us quickly consider 10 key clauses that must be included in your cleaning business contract form;
10 Crucial Legal Clauses for Cleaning Business Contract Forms
1. Once the Job / Contract Commences, No Refund will be made
Part of what should be in your contract clause form is that once a job or contract commences, no refund will be made. This is important because some organization might decide to call off a contract when you would have gone ahead to buy the required cleaning chemicals and equipment needed to carry out the job. If you continue to refund everyone that calls of contract, you will surely run at a loss.
2. Mutual Agreement must be reached on The Type of Chemical and Equipments to Be Used in Cleaning
It is important to state that mutual agreement should be reached, about the type of chemical and equipment to be used in conducting your cleaning job. Some people might not like the smell of certain chemicals and so might want to leverage on that to delay or make you spend more in buying another chemical to carry out the job. Just ensure that the required documents are signed before purchasing chemicals and equipment.
3. 70% of the Fee Charged Must Be Paid in Advance before Commencement of the Job
It is very important to collect 70% of the fee charged for a contract before commencing the job. This will help you buy the required materials to conduct the job and also to pay the employees that will execute the job. The truth is that if you do not collect a reasonable amount upfront before starting a cleaning contract, you might become financially stranded on the job.
4. If a Contract that has been Duly Signed and Paid for is cancelled before Commencement, Administrative Fee and the Money Used in Purchase of the Required Cleaning Chemicals will not be refunded
You are not expected to refund all the money collected for a contract once the contract is cancelled especially by the other party. At least you should be able to deduct the administrative fee and the amount used in the purchase of chemical. This must be clearly stated in your contract form or else you will have to pay back the full money collected.
5. The Balance of the Contract Must Be Paid Within 2 Weeks of Completing the Job-: If you collect a percentage of the contract fee before starting the job, you must clearly state in your contract agreement that the balance of the fee charged must be paid within two weeks of completing the job.
6. You Must Clearly State if VAT is Inclusive of Your Charges or Not-: Some clients might not understand whether VAT is inclusive in your charges or not; please ensure that you clearly state whether VAT is inclusive of your charges or not. Your invoice must clearly state whether VAT is inclusive or not.
7. Time Frame for Concluding the Job Must Be Clearly Stated and Agreed Upon-: It is important to clearly state and agree on the time frame for concluding a contract / job. This is important especially if it involves a short – term cleaning contract i.e. post construction cleaning contract et al.
8. Indemnification Clause Must Be Clearly Stated
This clause will give you a release from liability. In the event that there are losses or unplanned expenses are incurred whilst conducting the job. You should use this clause with caution in order not to limit your ability to recover damages for losses et al.
9. Cleaners Should Be Paid As Agreed
It is important that clients sign that they would pay as agreed and do not take it upon themselves to deduct the employees money. This is because some people may not be satisfied with a job and as such they withhold some money. If such a case arises; you can go the extra mile to say that workers can be sent back to do a rework if not satisfied.
10. Treat Workers If Injured
Do state that workers be treated as soon as they get injured in the process of work. This means that if you have sent some workers to go work and in the process they got injured, then it is the responsibility of the clients’ to taken care of them.
Do ensure that all the key clause you have stated in your contract is strictly adhered to so that you do not run into trouble with your client.