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‘The contract you did for us was the ONLY reason we were able to avoid paying out over $300,000! Can’t thank you enough!! – Peter H’
Why is a Cleaning Contract Important for you?
Whether you run a small or large cleaning business, you need a cleaning contract for 2 key reasons:
1. Contract certainty – To set out what you have to clean and how much you get paid for providing that cleaning service; but also
2. Future sale – the more cleaning contracts you have in place with clients then the more valuable your business is if you were ever to sell it.
Having those contracts in place (and assuming the client allows the contracts to be novated to the buyer) allows a buyer of your business to start making money straight away.
What is a Cleaning Contract?
Simple – it’s a contract that sets out that one party will provide cleaning services (what they have to clean, when they have to clean it, the standard of cleanliness, what other items need to be clean or looked after – e.g. emptying bins) for a fee.
The cleaning contract will also go on to say how much the cleaner gets paid, and when they get paid plus any other terms and conditions in relation to the process of getting paid.
When should I use a Cleaning Contract?
It is best to introduce a well-crafted cleaning contract in every business situation to protect you and your client in doing business together.
A cleaning contract is crucial in dealing with commercial sector clients, including where you are providing cleaning services to businesses, strata managers, and companies.
What are the key clauses in any Cleaning Contract?
The clauses used in a cleaning contract help the parties know their legal obligations, duties, and responsibilities. The essential provisions are outlined below:
1. Scope of services
This defines what the actual services are (ie are you vacuuming carpet and cleaning windows, or just vacuuming?
2. Term, renewal and termination
These clauses say how long the contract is for, whether it can be extended and how you bring it to an end
3. Payment details
How much are the cleaning services and when do you get paid?
4. Damage or Loss of Property
Is the cleaning liable for any damage they cause whilst cleaning? Is their liability then limited or capped to a certain amount?
5. Dispute resolution
In the event of a dispute, how are matters dealt with?
What are the main risks with a Cleaning Contract?
1. Services not Defined
The main risks in a cleaning contract are that the services are not defined properly. For example, the client believes they are paying for vacuuming of all offices and cleaning of kitchens and toilets and the taking out of all rubbish. However, the cleaner may believe that they only have to vacuum and take out the rubbish.
Whilst the cleaner is happy to do the kitchen and toilet cleaning doing so means a contract variation so they should be paid extra for those services.
You can see from this simple example how being precise with defining the services can make a big difference in understanding what needs to be done for payment.
The second major risk relates to payment. How much is to be paid for each type of service and when is it going to be paid. What happens in the event of nonpayment, this needs to be clearly set out. Are late interest payments applicable? Does the cleaner have the ability to down tools until payment has been made?
3. Who’s responsible for the damage?
The next area of risk in a cleaning contract is what happens when the cleaner damages something – under whose insurance will the damage be claimed?
Do you need a Cleaning Contract Lawyer?
If you provide commercial cleaning services then you should really have a contract with your clients, it makes you look more professional and also helps protect you.
Also, and as mentioned above, it can make your business a lot more valuable if you were ever to sell it!
If you have any questions please get in touch.
Got a Contract Question?
Send us the contract with your questions or requirements. We will then provide you a fixed price quote to answer your questions, or to provide a general review of the contract.