do i get them to sign 'contract'

chris_spackman

I'm running a small cleaning buis and things are going ok but i am looking at getting new customers to sign T&C's.

Reason for it is that i have had a few customers not pay up and of course it hits the cash flow. Looking back i should of done it sooner but i am very new in business.

The question is would you sign a 'contract' to have a cleaner come round for a few hours each week. I've looked at some firms and they look quite scary! All i want to do is cover things such as payment, liability etc.

benchin440

chris_spackman wrote: »

The question is would you sign a 'contract' to have a cleaner come round for a few hours each week.

Yes I would.

Very important imo, the t & c's are there to protect the customer as well, it also improves the image. Important to get all the details correct though so if you can try and obtain details from similar companies etc to make a comparison.

weeclick

Id say yes, infact I think you look more legit if you have a contract, as mentioned its there to protect the client as well as yourself. My company contract covers the basics and we've put it in such a way that it doesnt scare clients away from using us, our contract role is very simple its there to ensure that

1) we get paid the amount agreed
2) that the client gets exactly what was offered to them
3) that its done to everyones satisfaction

Best thing to do is get a feel for what other companies offer in a way of contracts and see if you can build apon that for your own firm.

FusionVBS

I agree with weeclick. The contract exists for the benefit of both parties, not just the supplier so don't be shy or embarrassed about waving one under the nose of a client. However, particularly in your line of work it should be fairly short and to the point. A nice touch I have found is to allow both parties to cancel at anytime rather than tying them in for any lengthy period of time. It means you can say to your customers "If ever you're not happy, you can walk away". It gives them the reassurance that you believe enough in the quality of your work to stand by it. Even if they do cancel, you should structure the contract so that they will still be liable to pay you for all the work you have done up to that point.

Slinky

Do your clients in the main pay the same every time?

Can you get them also hooked in by saying 'most of our customers pay on weekly standing order as they find it really convenient, would you like to do this? Should you wish to change the arrangements you can of course cancel it anytime'

If people understand that this is the norm, they are likely to follow it.

Debt_Free_Chick

chris_spackman wrote: »

I'm running a small cleaning buis and things are going ok but i am looking at getting new customers to sign T&C's.

Reason for it is that i have had a few customers not pay up and of course it hits the cash flow. Looking back i should of done it sooner but i am very new in business.

The question is would you sign a 'contract' to have a cleaner come round for a few hours each week. I've looked at some firms and they look quite scary! All i want to do is cover things such as payment, liability etc.

Contracts are "OK" for things like liability. But contracts are only used when the relationship between you and your customer has broken down and you then need to resort to "legal" remedies. Pursuing the dispute "legally" will cost you more money so you need to look at what you would actually gain.

In particular, you say that you've had customers not pay up. Unfortunately, a contract won't solve that.

If you have a customer who won't pay, you can take them to Court with or without a contract. If you win and the Court agrees that the customer should pay up, you'll get CCJ against that customer. The CCJ confirms that the customer should pay you - but it doesn't get the money paid! :mad: If the customer (by now ex-customer!!!) refuses to pay, you then need to pay a bailiff to visit them, to get the money - or pay more to get another Court Order to seize goods/possessions, which you then sell to get your money.

It's not easy, is it?

Rather than faffing around with contracts, I'd be inclined to look at your credit control process.

What do you do when you get an unpaid bill?

Obukit

Having been in the position of hiring cleaners in various jobs in the past, I'd definitely recommend contracts. As others have said, not only does it provide protection for your cash flow, but it should also set out what exactly you're going to do during each visit, so that if you're underperforming, or if the client expects you to overperform, then you have something in black and white as to what's been agreed.

As a businesses, hiring new cleaners takes time and causes disruption, so being able to effectively "supervise" the work being done means I can keep cleaning standards up (because, let's face it, most cleaning companies do good cleans the first couple of months then slip and slip if you don't pull them up!).

slipp_digby

although it may seem a bit sledgehammer and nut, a contract (no matter how short) will provide a point of reference for you and clients.

I agree with the above post about credit control, but surely the contract/agreement is the starting point to recovery action anyway e.g. 30 days terms, define scope fo duties etc??

chris_spackman

I'd just like to start by saying thank you very much for all the responses.

It's great to hear what you all think and i have taken away some ideas from all of you. I have run a few copies up and will see if i can get someone to look at them.

Again thank you all so very much

:beer:

FusionVBS

Debt_Free_Chick wrote: »

...But contracts are only used when the relationship between you and your customer has broken down and you then need to resort to "legal" remedies.

Not necessarily. Often contracts prevent disputes because both parties are clear about what is expected of them.

I agree that chasing a small debt through the courts is pointless (unless you want to prove a point) but you can often resolve the matter with a stern letter simply threatening action. If your demands are backed by a simple contract it makes your case so much stronger...and you don't have to follow it up if it doesn't work.

I agree with your point about credit control, but a contract will also help that process.