The Cleaning Business Owner’s Crash Course in Custodial Contracts 

Unclear expectations can quickly fracture a strong client-business relationship. Worse yet, an agreement that fails to protect your legal interests can leave you in a sticky situation. 

Your financial health and reputation are at risk. But custodial contracts can be your first line of defense. 

With the right approach, they can help you overcome the obstacles above and get paid fairly. 

What are custodial contracts? How do they fit into your business? This is your ultimate crash course. 

We’ll define custodial contracts and list the key elements you should include. We’ll go over how to create a custom contract. Then, we’ll share some of the most effective pricing strategies. 

We’ll talk about negotiations and important legal considerations. We’ll give you some best practices for presenting contracts to your clients. Use our guidance to win more business. 

Finally, we’ll offer up some quick-fire tips and takeaways. These will kick-start your momentum so you can take advantage of custodial contracts faster. 

If you want to spend less time worrying about fine print and more time growing your business, this article is for you. Let’s get going now! 

What Is a Custodial Contract? 

Custodial contracts are a type of contract. They represent the agreement between you—the provider—and your client. 

They detail all the important information about the services you will be providing. They set clear expectations from day one so everyone’s on the same page. 

Custodial contracts are not just another piece of paperwork. They’re not about box-checking. They play a vital role in protecting your business’s best interests by: 

• Helping you avoid disputes resulting from client misunderstandings 
• Ensuring you get paid in full and on time 
• Outlining the specifics, like who will supply cleaning equipment and what happens if the service needs to be canceled 

Ideally, you should have a custodial agreement before starting a job. That way, you can proceed with confidence. 

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Key Elements of a Custodial Contract 

Every custodial contract should include the following elements: 

Scope of Work 

What it is: An outline of the specific services you will perform. 

Example: Let’s say you’re cleaning an office building. The scope might include: 

• Vacuuming floors 
• Wiping down services 
• Emptying trash bins 

Timeline 

What it is: The schedule for when the cleaning will happen. 

Example: “Cleaning services will be performed Monday, Wednesday, and Friday between 6 PM and 8 PM.” 

Pricing 

What it is: How much the service costs (you might charge by the hour, per visit, or even by square foot). 

Example: “$1,200 per month for cleaning services. Additional services like carpet cleaning will cost $150 per service.” 

Payment Terms 

What it is: How and when you expect the client to pay. 

Example: “Payment is due on the 1st of each month. Please pay by credit card or direct debit. A late fee of 5% applies after a 7-day grace period.” 

Contract Length 

What it is: How long the agreement will last and how either party can end the contract early. 

Example: “This contract is valid for 12 months, from January 1, 2024, to December 31, 2024. Either party can terminate the contract with 30 days’ written notice.” 

Modifications and Add-ons 

What it is: How you will handle changes or additional services. 

Example: “Additional services must be requested in writing and will be priced separately.” 

Liability and Insurance 

What it is: Who is responsible for damages or accidents that happen during the job (most clients expect you to have insurance). 

Example: “The cleaning company carries general liability insurance to cover any damages caused by its employees while performing services.” 

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How to Create Customized Custodial Contracts 

There’s a big difference between cleaning a hospital, a hotel, and a school. Even within similar facilities, no two clients are the same. 

There’s more, too. 71% of consumers think companies should deliver personalized experiences. When this doesn’t happen, 76% become frustrated. 

One-size-fits-all just doesn’t work. It doesn’t make practical sense, nor does it align with the type of customer experience you want to deliver. 

How can you create customized custodial contracts?  

Follow these tips: 

Know Industry Standards 

Some industries have special rules regarding cleaning. For example, a doctor’s office might have strict hygiene requirements that retail spaces might not.  

It’s smart to research the industry in which your clients operate. That way, you can shape a contract that helps your clients stay compliant. 

Make it happen: Ask your clients about regulatory guidelines that affect cleaning. Be proactive—your clients will appreciate the attention to detail. 

Adjust the Scope of Work for Client Size 

Not all buildings are the same size, and neither are the cleaning jobs. Small offices will likely need more basic cleaning services than larger facilities. 

Make sure your contract is flexible enough to cater to these different needs. 

Make it happen: Organize tasks by frequency, like daily, weekly, or monthly. Clients can then see the exact services they’ll get and when they’ll take place. 

Tweak Timelines to Business Hours 

Cleaning services are essential, but they can disrupt day-to-day operations. Adjust your timeline to work around your client’s business hours. 

For example, a school might prefer cleaning services after students leave for the day. In contrast, a retail store might want the cleaning done before it opens. 

Make it happen: Ask the potential client what times of day they are open to the public. See if you can clean before or after those hours. 

Include Industry-Specific Services 

Different industries might need unique cleaning services. Schools may need extra attention to high-traffic areas like gyms and cafeterias. 

Adjust your contract to include these industry-specific tasks. This shows you understand and can meet the client’s needs. 

Make it happen: Think about the specific needs of the client. Include provisions for extra equipment and supplies you might require in the contract. 

Pricing Strategies for Custodial Services 

Getting the price right is all about balance. 

• Prices that are too high will encourage clients to take their business to a competitor. 
• Prices that are too low will not generate enough profit. They also risk devaluing your services or hurting your business’s reputation. 

Let’s look at some pricing strategies and how to make them work for your business. 

Hourly Rates vs. Flat Fees 

You can price custodial services using hourly rates or flat fees. 

Hourly rates are charged by the hour. The average cost of commercial cleaning is $40 per hour. 

Pros include: 

• You’re covered if the job takes longer than expected. 
• You can charge extra for last-minute requests or extended hours. 

Cons include: 

• Clients may worry that your team is moving too slowly. 
• It’s harder for clients to budget with unpredictable and variable costs. 

Flat fees, in contrast, set a fixed price for the job. 

Pros include: 

• Clients know exactly what they’ll pay. 
• You get more certainty over your time, schedule, and earnings. 

Cons include: 

• If the job takes longer than expected your profit shrinks. 
• You may miss out on extra income if clients need more services. 

How to Make the Right Choice 

Here are some important considerations to make when deciding on a pricing strategy: 

• How much are your costs? Consider employee wages, cleaning supplies, insurance, transport, etc. Add up these costs and ensure whatever pricing model you use covers them. Don’t forget to add a profit margin—at least 10% and up to 30%. 
• How much do your competitors charge? You should have a good idea of the market rate. Your services should be in the same ballpark. 
• Have you considered pricing software? Manual calculations can get complicated, especially with flat fees. Pricing software like Service Fusion simplifies this process. You can make flat-rate pricing books that make sure all expenses are covered. You can then present a clean price to your prospects with no hidden surprises. This could be enough to get them over the line. 

Avoid Common Pricing Pitfalls 

It’s all too easy to make mistakes when pricing up your contracts. Avoid these common ones: 

• Underestimating the time a service takes: Prevent this by adding extra time to your estimates, especially for new clients. 
• Not considering the cost of supplies: This is crucial if you need to use specialized products to meet industry needs. 
• Failing to charge for add-ons: If your client asks for additional services, make sure to charge for them. 

Negotiating Custodial Contracts Like a Pro 

No one likes awkward conversations about money. But you know how much you need to charge to keep your finances healthy. You can’t agree to a price that doesn’t make sense. 

Here are some techniques to help you negotiate like a pro: 

• Before you start the discussion, set a limit. Do not go below what is profitable. 
• Be flexible and understanding. Give the client choices, like paying by the hour or a fixed rate. 
• Be clear about which services are provided and which cost extra. 
• Highlight the value of your service—not just the price. What do you do differently from your competitors? What unique benefits can you showcase? 
• Keep records. Document all the terms you’ve agreed on. You can turn to these later if needed. 

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Legal Considerations for Custodial Contracts 

The legal side of business might not be the most exciting. But that doesn’t mean you should ignore it. 

When putting together your custodial contracts, make sure to address liability. This is about who is responsible for any damages or accidents that might happen during the service. 

You should also include an indemnification clause. This ensures you won’t be held accountable for a problem your client or a third party caused. 

Having a lawyer review your contract before it’s finalized is also wise. They can point out gaps or potential ambiguities, which could bite you. 

How to Present a Contract to a Client 

How you frame the contract to the potential prospect can make all the difference. Here are some best practices for both in-person and digital presentations: 

In-Person Presentations 

Professionalism and clarity matter. 

Always bring printed copies. Be ready to explain the terms in simple, straightforward language. 

Start by reviewing the key points, like the scope of work and price. Make sure the client understands what’s included and offer to answer any questions. 

Presenting via Email or Digital Platforms 

If you send the contract digitally, your message should be just as clear and professional. 

Include a brief message or cover letter explaining the contract’s contents. Use dot points to highlight the most important sections so the client knows where to focus. 

You can even use digital tools like DocuSign or Adobe Sign. These tools make it easy and secure for clients to review and sign the contract electronically. 

Follow-Up and Clarification 

Always follow up if you don’t hear back. Be kind and polite, not pushy or impatient. 

Ask if the client has any questions or concerns. Be ready to walk them through specific parts of the contract or make adjustments. 

You might set a deadline for signing the contract to speed things up. 

FROM ONE OF OUR PARTNERS 

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Custodial Contracts: Where to Start 

If you’re ready to start shaping and selling custodial contracts, get started now. These three tips will help you get moving in the right direction: 

• Decide on the best-fit pricing model. Consider how your business operates. Are flat-rate prices or hourly prices better suited? Consider what your clients might prefer, too. You might choose to offer both pricing options. 
• Divide your services into specific tasks. Contracts need to be detailed. You can’t just say you’ll provide weekly cleaning—you must include what that entails. 
• Find a reliable lawyer. A legal review avoids costly issues down the line. So, if you don’t already have a lawyer, do some research now. That way, you’re ready to go when the time comes.