Contracts for the self employed

I started a very similar thread a while ago... found it:

http://www.able2know.com/forums/viewtopic.php?t=53191

It has a link to one contract template site I found. You can find a bunch more by Googling "contract template housekeeping" or "contract sample housekeeping", stuff like that.

Smart move to do this, shewolf.

Let me suggest using the least amount of words in the most pleasant way possible - that also cover your ass. I've had killer contracts, oh, say, 10 pages, and one pagers, and have ended up on two pages, or so. Of course, consulting an attorney can give you useful input.

Thank you !!
I will go through those now.
:-)

Who'da thunk it..

My very first customer .. is a business consultant.
and you know her specialty?

Contracts.

I got some WONDERFUL information from her.
In fact, I am taking a little less pay in exchange for her to proof read my next set of contracts.
She told me that it is easier to have a contract for everything.
One for pay rate
One for accidents - breaking a glass, or something falling off the shelf .. etc
One for accusations
And one for jub duties.

this woman was SO much help and SO wonderful.
I can not believe my .. luck i guess... in having her as my first client.

OK, so I have gotten really lucky so far.
My first 2 customers were a tremendous help.
The first one, as I stated above , works specificaly with contracts for small companies.

My second customer is a lawyer! And she is willing to give me small tips as well.

But now my concern is if i even SHOULD have a small contract for my jobs?
I mean, it is a great idea to ' cover your ass' in situations like this, but how can i handle legal ramifications if something comes up?
How well can i cover my butt with a small contract?
Do i have to put in 'consequences?

Basically- this is my contract-


1. Name of Party 1: Me
Name of Party 2:

Address of Party 1 - My address

Address of Party 2 - _______________________________________________


2) Wages
 Minimum charge of 2 hours applies to all shifts.
Gross wages of $ 40.00 for the first 2 hours of work to be paid on completion of shift
9.00 per hour for time after the initial 2 hour charge, to be paid on completion of shift.
Time will be rounded into 20-minute increments.
No monthly wages No insurance will be provided
No weekly wages No travel pay ( without written consent)
No vacation or sick time wages apply.
No bonus pay will apply No double , or over time pay applies

4. Terms of Separation

Party 2 to notify Party 1 of separation and termination of contract with in 48 hours of next scheduled shift

Party 1 to notify Party 2 of separation and termination of contract with in 72 hours of next scheduled shift.

 A one-time cleaning does not have to comply with terms of separation requirements.

One time cleaning visit initial here __________


Amendments to this contract must be made in writing and agreed to by both parties.
5. Signature of Party 1:______________________________________
6. Signature of Party 2:______________________________________

I certify that the requirements outlined above are accurate and correct, and agree to comply accordingly.
Date: _____________________________
===============================================

But I am thinking that this implies that there will be consequences if things are not complied to?
Am i over doing the whole ' contract' thing?

What about insurance? Just at thought, please ignore if it's a dumb question

Actually goodfielder, that's a very good question.

You can't cover every possible situation with a contract so many people in this sort of situation get insurance to cover themselves. The type of insurance you want is called "Bonding". The bonding would cover situations like if you broke something while working in a client's home. It would also offer some protection should a client claim that you stiole something from them.

Which people starting out on their own can't afford, the bonding that is, though is probably smart and maybe could be sprung for.

A lot of people in a lot of efforts go insurance bare. A scary way to live, but sometimes necessary. Shunned of course by people with some more backup.

I was never so relaxed as when I had errors and omissions insurance. On the other hand, I am still paying for it a few years later, by visa, and it doesn't work any more since I didn't keep it up. Not that bonding is the same, I don't know about bonding.

im not sure i understand?
are you talking about bonding like the others have stated?

The bond is similar to insurance - it is a fidelity bond or theft coverage. It is generally required for cleaning companies that do commercial work - cleaning offices, etc. A fidelity bond is insurance that the cleaning company would put in place for employee theft/dishonesty (meaning if one of their cleaners stole $1,000 from a client, the cleaning company can claim this loss off the fidelity bond).

For a one-woman-show like yours that has no other employees and who is doing residential cleaning only I am thinking you do not need a bond.

It is possible to get liability insurance (for breakages or if you happened to forget to lock the front door as you leave and the house is broken into) but insurance can be pricey. For future jobs you take on, add in a mark-up charge for insurance. You should be costing the jobs based on the materials you expect to use and any/all overhead (including insurance) before factoring what your profit is.

See if your homeowners insurance policy could be extended to include a home-based business liability. I know you are going out to these peoples homes but it can't hurt to talk to your insurance company and find out if they would provide liability cover for a small charge.

Alternatively you could ask the homeowners to sign a "Hold Harmless Agreement" in addition to the cleaning contract. This basically states that they accept that, due to accident, items may be lost or broken and they agree to let you into their premises for the purposes of cleaning only and should any mishap occur, they will not blame you and will essentially hold you harmless for their loss.

Third party vendors (contractors, painters, etc.) use these all the time. The homeowner can then claim off their own homeowners policy for any losses that occur.

Oh and a fidelity bond (employee dishonesty/theft) policy will only pay out if the employee was convicted of the theft. It does not pay if the client sues you for a loss of money they accuse you of stealing if you are not convicted of the crime in a court of law. If you have to go to court or incur any costs in defending yourself, a general liability policy is likely to cover that exposure. Nix the bond and go for liability cover.

I just remembered you rent from your MIL, right? Does she have homeowners insurance? Can she add you to her policy? Can't hurt to ask her if you can call her carrier to find out.