[cleaninghouses]

My husband and I started a cleaning service and would like to clean offices. Do we need to be insured and/or bonded to do this?

[Clough]

Hi, cleninghouses!

Of course you need to have at least liability insurance. Being bonded is usually not a requirement, but I don't know that laws concerning this where you will be working. So, it would help to know where you will be working. Being bonded is something that looks good for advertising, but is not something that most customers look for. In short, it's usually an unnecessary expense.

Please put the two words Clough, Cleaning into the search function at the top of this page and then perform a search. You're going to find many threads where the subject of starting and maintaining a cleaning service has been discussed. You can find threads where just about every aspect of that sort of business has been discussed in detail.

If you would like ideas as to how you might promote your business for free on the Internet to get excellent exposure, please let me know.

Thanks!

[Stringer]

Bonds are usually only required on bids that are for city, county, state, federal or large clients (with egos).

You may understand how a bond works however if you don't:

The bid will state if a bond is necessary in the bidding process. It can state an exact amount but usually will state a percentage of the bid price. For example; 10% of the monthly or or 2-3% of the annual bid price.

If this is stated, you must then get a "Bid Bond" from an insurance company for that amount listing the client also on the bond. IF you do not perform your service or perform in a manner NOT acceptable to the client you will forfeit that bond to the client and you will be out the money you paid for that bond. Not only that, you probably will never get a bond again from any insurance company.

You should ALWAYS do your due diligence in closely reading AND understanding all that is written and required in a bid package. There is much to be leary about. Always error on the side of caution. Always consult an attorney if you have ANY questions about bid packages from any of the above mentioned entities.

Also, large companies and municipalities usually have a staff of attorneys that have time on their hands so they spend much of it preparing these bids and love to use "lawyer talk." Can be very dangerous to you as a vendor if you have little experience.

Another thing about reading every word and understanding it; usually this type of "client" wants a "termination clause." This basically states that the client can get out of the contract for non performance and usually after proper written notice after 30 days. This is usually standard, anything different should be discussed with your attorney PRIOR to bidding. And if a bond was required, you will lose it.

I usually prefer not to bid these types of jobs, a hassle and they pay late almost always... especially now that the economy isn't good and their revenue is down like the State of Illinois. I hear they are in some cases six months behind and that will put you out of business my friend.

More information than you asked for right? Ha, sorry.

If you have any questions, please post them here.

I wish you success,

Stringer