Running a cleaning business can be extremely profitable and rewarding. The demand for cleaning services is ever-increasing, and profit margins can be high. Therefore, ensuring that you have well-drafted legal contracts to protect your business is crucial. Contracts are important because they outline the expectations for both parties and protect them if expectations are unmet. Contracts also lock in the price that your customers will pay for your services, which makes things easier to resolve if any disputes arise. This article outlines some of the key legal contracts your cleaning business needs.
Service Agreement
A service agreement is a legally binding document between you, the service provider and your client, who is receiving the services.
Having a service agreement between your business and your clients is crucial. This agreement clearly outlines the arrangement’s terms, reducing risks and providing a reference point in future disputes. Having a well-drafted services agreement gives you and your customers confidence in the terms and conditions governing the working relationship.
Services Provided
This section of the agreement will detail the services you provide to your client. You should specify the areas you will clean and the types of cleaning you will do. It is very important to ensure that you are very specific when determining the services you are providing in an agreement. Any ambiguities or lack of clarity regarding the services can lead to disputes. Therefore, the more detail you include in your agreement, the less likely a dispute will arise.
For example, if you have a corporate client, you should outline whether you will be cleaning all the floors of their office or just the ones in the kitchen and bathrooms. You should also outline whether windows or wall cleaning are within the scope of your services.
Supply of Cleaning Products
To avoid confusion, it is also helpful to set out who will provide and maintain the cleaning materials and products. The agreement should outline the following:
- whether you will supply the cleaning products for your clients; or
- if your clients have their own cleaning products, whether they prefer you to use them.
You should factor this into your rates if you are responsible for providing and maintaining the cleaning products.
Period of Work
Your service agreement should state whether you will be providing cleaning services on a:
- one-off basis; or
- regular basis.
If it is regularly, the agreement should detail how frequently you are to perform the cleaning services, for example, fortnightly. It should also specify for what period of time you are engaged in this contract. For example, a contract might set out that you will clean the premises one day per week, and the contract term is for two years.
Entering and Exiting Premises
Your agreement should outline how your clients will provide you access to the premises that require cleaning. For example, the contract should outline whether you will receive keys or an access card to the building or if someone will let you in.
You should also be clear about whether there are specific procedures you need to follow when entering or exiting the premises. For example, suppose you are cleaning an office space and accessing the premises after business hours. In that case, you may need to disable any alarms when entering and re-enable any alarms before leaving.
Fees and Payment Terms
Your service agreement must clearly outline your pricing structure to ensure your business is successful and cash flow is well-managed. You should include clauses relating to how you will charge overtime for jobs that exceed the estimated timeframe or involve unsociable hours.
You may also wish to charge additional fees for the following:
- providing and maintaining cleaning products; or
- travel expenses.
Your agreement should set out how clients should pay you and the terms of the invoice.
Your agreement should also detail the number of days a client has to pay an invoice and what to do if payment is late. Sometimes, you may want to include charging interest on payments made outside the set timeframe.
Cancellations
Your service agreement should state when your clients can cancel your services and on what basis they can cancel.
For example, you could outline that you will:
- request a cancellation fee; or
- refuse to refund a deposit if a client cancels within 24 hours of the job.
These cancellation terms should be fair and reasonable, considering the costs, resources and commitments associated with providing your services.
Termination
Your service agreement should detail how clients can terminate the contract, including an outline of the process and conditions under which termination is allowed.
For example, if your client is locked in for a two-year term and they wish to terminate the contract before the end of that period, the service agreement should detail how and when they can do so.
Disputes
Your service agreement should have a dispute resolution clause detailing how to handle disputes if they arise. This may require parties to attempt mediation before pursuing litigation. This not only promotes a cooperative and amicable resolution process but also helps to reduce any legal costs associated with formal court proceedings.
Liability
Your service agreement should limit your business’s liability to the fullest extent possible under the law. The agreement will set out limitations on your liability, and this clause will limit whether someone can sue you for breaching your contract. It should also limit the amount of damages (i.e. compensation) you pay if you breach your contract or damage something while providing cleaning services.
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Employment or Contractor Agreement
If you engage any workers to assist you in providing your cleaning services to clients, it is essential to have the appropriate agreement between your business and any workers involved.
If your workers are employees, you must have an employment agreement in place. Similarly, you must have a contractor agreement in place if they are contractors. You must correctly classify your workers as either employees or contractors to provide them with the appropriate entitlements. Failing to do so may result in fines and potential liability for additional worker entitlements beyond what has already been paid.
Your employment and contractor agreements will outline the arrangement you have with your workers, including information on the following:
- their expectations regarding work, including tasks and responsibilities;
- prohibited conduct within the scope of their work;
- payment, including rates, methods and frequency;
- termination of the employment or contractor relationship; and
- restraint of trade, including limiting a worker’s ability to compete with your business or solicit clients after termination.
Contracts If You Use a Website
Website Terms of Use
If you use a website to promote your cleaning services, you should have a website terms of use document published on your site. This legal document outlines how visitors can use your website. You can also use it to limit your legal responsibility for any issues arising from a visitor using or interacting with your website. Website terms of use also use disclaimers related to the content you have published on your website.
For example, it will detail that you own all the content you posted on your website, including any photographs showcasing your cleaning work. This provision ensures that visitors know they cannot copy or use your content without your permission.
Privacy Policy
If you collect, use and disclose any personal information from your clients, having a privacy policy will be necessary and can assist with managing your legal risk. You may be legally required to have a privacy policy in certain circumstances. Personal information may include your client’s:
- name;
- phone number;
- email address; and
- street address.
Your privacy policy will outline the following:
- the types of personal information your business collects from clients;
- how you use personal information;
- the circumstances under which you may disclose the information to third parties; and
- your client’s rights regarding their personal information, including access, correction and the ability to withdraw consent.
Key Takeaways
Running a cleaning business can be both challenging and incredibly rewarding. To ensure that your business is best protected, having well-drafted legal documents and understanding your legal requirements is important.
If you need help with drafting contracts for your cleaning business, our experienced contract lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
A service agreement, employment or contractor agreements, a website terms of use and a privacy policy. Depending on your business, you may require further documents.
A well-drafted service agreement will clearly outline your clients’ and your business’ expectations, responsibilities, and rights. This helps reduce risk, including avoiding a dispute and provides a clear point of reference that is legally binding for both parties. Accordingly, this agreement provides certainty and protection for both your business and your clients, helping foster a strong and mutually beneficial working relationship.
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