Tricky contract - how should I word this one?

Hello,

Looking for some advice & know you lovely lot always come up with the answers!

I'm taking on a contract that is not straight forward. Mum generally needs 4 days a week, full days. However Dad works as a contractor and is either away for weeks at a time or home for weeks at a time. When he's home they won't need 4 days but may still use one or two. I know she was going to use a nursery initially and therefore would be paying for 4 full days regardless. However I am a childminder and part of the benefit as I see it is the flexibility we offer so I said I am willing to offer some sort of discount to acknowledge the fact that sometimes little one will not be here.

So this is what has been agreed verbally so far: monthly fees will be based on three full days a week as a minimum. This will give me a regular monthly income that can be relied on. If they use less hours then this amount will still be expected in full. I suppose the problem is what if they use more? I've said that I would review hours used on a regular basis and invoice for any hours that go above the 3 days I'm charging for. I suppose I'm not sure how frequently I should do this as monthly may be too much cos one month could balance the next one out.

Does anyone else do a contract similar to this? Is there anything you think I've not taken into consideration? We sign contracts on Wednesday so want to make sure I've got it all totally clear in my head before then!

Thanks x

I'd do either a 3 day minimum and then charge for the additional days each month on an ad hoc basis

Or, charge full rate for 3 days, then 50% retainer for the remaining days to hold the space open, and top up for the days used.

I have one family on the first option but tbh it's a bit of a pain now that I'm filling up, as it means that I can't fill a space that some weeks I have a space and some weeks I don't. I took it on very early when I had little work, but knowing what I know now, I'd go for the second option.

Sounds like you have agreed to keep all five days open but will charge for three each week and they can use any three days but if child comes less they still pay for three. If the child comes more then those extra hours should be added to the bill either at the end of the week or month depending what suits you and the family.

On the contract I would write this contract is for any three days (monday to friday only) in a week between the hours of x and x any additional days will be charge at £x an hour on an as and when required Basis.

Try to make it clear and to the point what you are offering be careful about offering to review hours used over months and balancing out months as it becomes hazy what they have to pay for precisely and you end up with hours swapping here and there, holding a full weeks space for very little income. You will not be able to take other children on for any of the days this family might need over the week but could potemtialy end up paying you very little.

I would contract for 3 days and then add extras on every month, if you start carrying it on the next month, it will get confusing with some months being less and some more with always a carried forward balance of hours. I would ask parents to pay 3 days whether used or not.

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Originally Posted by funemnx

I would contract for 3 days and then add extras on every month, if you start carrying it on the next month, it will get confusing with some months being less and some more with always a carried forward balance of hours. I would ask parents to pay 3 days whether used or not.

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I agree. You are already being flexible by agreeing to do this and only charging 3 days minimum payment for keeping a 5 day place.

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Originally Posted by sing-low

I agree. You are already being flexible by agreeing to do this and only charging 3 days minimum payment for keeping a 5 day place.

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Sorry, should have said 4 day place. I still think you're being very flexible.

I have a similar arrangement in that one I look after was initially 3 days a week, now his mum has a new Job she could need anything up to 5 days a week.

We have kept the contract as 3 days with the other 2 days on an ad hoc basis, she pays me at the beginning of each week the correct amount for the week 3,4 or 5 days.

Works for us and seemed the simplest way to do it.

Hth

Hi, thanks do much for replies do far!


Blue Bear, it's only 4 days I'm keeping open Mon - Thurs as I'm full Fridays & she doesn't work them anyway.

I know I won't be able to fill the days she doesn't use easily unless ad-hoc stuff comes up but I don't mind really as I don't want to be full every day. So way I'm looking at it it's only one day a week I'm potentially losing money on.

I just can't decide on monthly invoicing of additional hours as opposed to maybe every couple of months.

Just keep worrying that there's something glaring obviously that I've forgotten to cover!

i would charge a min of 3 days. I do my invoices the last week of the month ready to be paid on the 1st, so any shift workers I ask for their hours for the next month 2 weeks before the paydate so that I can add extra days on and get paid in advance for those days. if you start carrying days over to the following month it gets confusing.

If taking this family on means that you wouldn't be able to take on a full time child, I'd also add into the contract that you can offer the flexibility now but if the hours were causing you to not be able to take more children on then the hours would need to be reviewed.

I would not carry over from month to month, it all gets too complicated.

I would charge minimum 3 days every week and if they use additional day then charge. Don't carry foreward to next month 'a saved day' if she has only used you 2 days.
A parent tried to do this with me and it ended up that if child was ill she would want that as a saved day and it really messes your forcast and income up.

Your only have a certain about of places available and saving 4 with a guarantee of 3 days gives them an optional 25% discount as it is. Which is very good value.
:thumbsup: dont sell yourself short. :thumbsup:

I would have charged for all 4 days as you can't take anyone else on anyway and are losing income. Or at a push 1/2 fee for the 4th day but topped up to full when used - but then that creates a lot of faffing around for you in terms of invoicing the extra hours.

Only offering the discount as I would have been happy to only take 3 days anyway. Looking g forward to the occasional quieter week when her hubby is about! I also had a another family wanting to sign up for the full four days but I didn't really fancy it. Nice to be in demand though!

Thanks so much for all the advice everyone. I think you're right it could get complicated if I don't invoice monthly for additional hours. And I am already being pretty flexible with what I'm offering so far. It's always good to see what others think!

I would probably do as you have done, charge for three days and leave.the fourth optional as it would suit me to have quieter days.

I would charge upfront for the extra days.because if you carry it over month then the bill will build.up and will be open to dispute. So charge monthly in advance for the regular three days, then if mum happens to need the fourth day I'd ask for payment in advance at the time she books it with you. This would avoid her saying she needs you next week, then changing her mind etc.

I offer flexibility to one parent and she pays in advance for her standard agreed hours and in arrears for any extra, but I charge her for the extras on the next available invoice and wouldn't carry anything over. I have been doing this for over 2 years and its worked well for us

One family I have are in the police and at the beginning they sent me a spreadsheet of hours needed right up to end of August , if they need additional hours they pay me the week hours are used, that way I know what my payment will be and extra money goes in to holiday fund

Most of my families are shift workers, they have a FT space available to them and so my contracts state a minimum number of hours or days per month. They have to pay this whether or not they use it. The additional time they need (and most months they do need more) then I either invoice for that month if I know about them in advance, if they are last minute or they ask me after they have received and paid their monthly invoice I just make a note and add these additional hours onto the next months invoice but on top of their minimum contracted hours IYSWIM?

On my contracts I state the Minimum number of hours they are agreeing to.

xxx