How To Write & Price Commercial Cleaning Contracts
10 August 2023
5min read time
Guide
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If you've recently launched a cleaning business or are seeking more stable, long-term work to ensure your business's financial security, this article is for you.
In this general guide, we'll delve into the process of securing cleaning contracts and establishing competitive pricing strategies that can help your commercial cleaning business thrive.
Why Secure Cleaning Contracts?
While operating on a per-job or per-client basis can sustain your business, securing cleaning contracts offers several advantages. It can provide financial stability by ensuring a steady stream of work, even during slow periods with casual clients. Moreover, it builds your brand as a dependable and reliable service provider in your area, instilling trust, and credibility among potential clients.
Securing cleaning contracts may seem challenging, but it doesn't have to be daunting. By implementing a few key strategies to introduce and promote your services to your target market, you can establish long-term client relationships and grow your business.
Do You Need a Written Contract?
The need for a written contract depends on the nature of your cleaning business. While this article is not a substitute for legal advice, here's a general guideline:
- Verbal Agreement: If your focus is primarily on house cleaning and occasional jobs, a verbal contract and a handshake can suffice. A verbal agreement can hold up in court, but a written contract is easier to prove, making it a practical choice for added security, especially for jobs under $150.
- Written Contract: For regular commercial property cleaning, a written contract is advisable, particularly if you'll access properties outside normal hours or via alternative entrances. This type of contract should outline costs, working hours, access details, cleaning scope, and charges for any ad-hoc requests.
- Mutual Agreement: If a client prefers not to have a written contract, offer them a mutual contract, and explain its details. Openly discussing concerns can build confidence in your professionalism and the agreement.
Writing the Contract:
This is a general guide and it’s recommended to have a legal professional review it for completeness and accuracy. Here are some key components to consider:
- Basic Title: Start with a clear header, e.g., "Cleaning Services Contract," and include the contract's creation and validity dates. Define the parties involved.
- Termination: Outline termination rules, including how either party can terminate the contract, notice requirements, and any cooling-off periods.
- Services: Specify the services you'll provide, detailing what, when, and how frequently tasks will be completed. Be explicit about any additional charges for ad-hoc requests.
- Supplies: Clarify whether you'll provide cleaning equipment and supplies or if the client needs to supply anything specific.
- Rates: Clearly state your pricing, including hourly rates, payment frequency, and what's included. Break down costs if possible.
- Procedures: Address how you'll handle damage or breakage of client property due to your fault.
- Compensation: Specify payment terms, such as due dates and accepted payment methods. Outline consequences for late payments, if any.
- Signatures: Include a section for all parties involved to sign.
Determining Pricing Guidelines:
To set competitive pricing for your cleaning services, you may want to consider these strategies:
- Research Competitors: Study local competitors to get an idea of market rates. Consider offering lower initial prices to attract clients and create competition in your area.
- Profit as Your Objective: Calculate your desired profit after covering expenses. Adjust your rates accordingly to reach your profit goals.
- Contract Rates: Offer discounts for clients who sign long-term contracts with you. This can secure a stable income and incentivize clients to commit.
- Hourly Rate: Even if you charge per job, understand your hourly rate to ensure you're not undercharging. Assess the workload at each property before providing a quote.
Writing and pricing cleaning contracts for your commercial cleaning business is a complex but essential task. By defining the scope of services, setting clear expectations, determining a fair pricing structure, and addressing legal considerations, you can build trust with your clients, secure long-term partnerships, and ensure the profitability of your business. Remember that well-structured contracts not only protect your interests but also provide peace of mind to your clients, leading to successful and mutually beneficial relationships. This article is only a general guide, and it is recommended to consult with a legal professional to ensure your cleaning contracts comply with local and state laws.
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