Family-Child Care Contract Basics
The following are questions and answers on how to write a Provider-Parent Contract. I used the same guidlines when writing my handbook and contracts. These pages were not mine, I recieved them from an e-mail list. If you are the author, please let me know so I may give credit where credit is due.
What is a contract?A family child care contract is an exchange of promises between the provider and the parent(s) which the law recognizes as a duty and for breach of which the law will offer a remedy. The duties of all parties to the contract and the rights of the parties should all be spelled out very clearly in the contract. I believe in spelling out in the contract every detail from weekly payment being due when a child arrives the first morning of the week, through who provides supplies and how potty learning is handled, to termination of the contract.
What provisions have to be included in the contract? The contract must include the names of the parties, the provider's promise to provide child care during certain specified hours on certain specified days and the parents' promise to pay the provider a specified fee, payable at a specified time (usually the first day of each week, in advance). The contract must state the date on which it begins and the term for which it will continue (usually one year, beginning with a two week trial period). It should also state how it can be terminated and the rights and duties of the parties upon termination. Finally, the contract must be signed by the parties.
How do other providers set their fees? Basic fees are determined by the market rate in the provider's neighborhood for infants, preschoolers and school age children, either by the hour, the day or the week. If your local association cannot provide market rate data for your neighborhood, ask other providers you know, call centers and ask their rates or your licenser. In theory, the rate for higher than the rate for preschoolers because infants require more of your time and energy. To avoid problems with the Americans with Disabilities Act (ADA), you may want to establish your rate categories based not on age but on services provided. For example, Rate Class #1 is for children who do not use the toilet, feed themselves or walk by themselves. Rate Class #2 is for children who use the toilet, feed themselves and walk but do not attend full day programs at school. Rate Class #3 is for children who attend school for a full day, and can use the toilet, feed themselves and walk. Be warned, however, that the law under the ADA will be made by the courts as providers are sued and judges decide how the ADA should be applied, so this rate class system is not guaranteed. As an added precaution, I do not put my rate schedule in writing, either in my contract or in anything else I give parents. My contract includes only the fees for the child named in it.
After you decide on your basic fee structure, you will have to decide whether you want to offer discounts for siblings, friends and relatives or low-income families. (The MSFDCA is trying to get clarification from CCA on how a family provider with POC clients can set up a sliding fee scale based on parents' ability to pay.
Once you have determined what you are going to charge, stick to your fee schedule and don't let parents tell you that you aren't worth it. And don't forget to give yourself a raise periodically. Try to do it annually, tied to the current inflation rates.
Besides the basic fee for services, what other optional fees do providers charge? Fees to be specified in the contract:
*Registration or processing fee, either initially or annually with each new contract
*Security deposit equal to your fee for the termination notice period
*Late payment fee of $XX per day for each day the parent is late with the payment of the weekly fee or any other amount owed to you
*Overtime penalty fee for late pick up or early arrival without notice
*Bounced check fee (may include parent's loss of right to pay by check)
*Curriculum fees
*Fee for infant/child's diapers, wipes, formula baby food, etc. which parents failed to supply (cost to provider plus $XX penalty)Other fees, to be determined as they arise:
*Field trip fees
*Charges for damage to provider's property by child, above and beyond normal wear and tear
What should a contract say about how and when fees are paid? Payment is usually due weekly in advance, on the first day of the week or the last day of the preceding week. You may want to state in the contract that a child will not be admitted to the child care home without the week's payment. If you want to specify the form of payment, i.e. cash only, or cash, check or money order, do so in the contract. Some providers will accept checks until the first one bounces. Then they charge a fee for the bad check and require all future payments in cash. Make sure your contract is specific on your requirements for payment when the child is absent and on vacation and when you are closed or on vacation. An easy way to collect your vacation pay throughout the year is to get one extra day's pay the first week of the month, so parents do not have to pay you when you close for vacation. If you charge an overtime penalty fee for late pick up or early arrival state in the contract when it is to be paid. If a parent arrives after your closing time, the fee should be due and payable immediately, or no later than the next time the child arrives at your home. Again you should state that failure to pay on time is reason for you not to accept the child for care in your home. If you choose to care for the child without the payment, which is not recommended, provide in the contract for a late payment fee of $XX per day which continues to accrue until payment in full is made. If you require payment during the termination notice period, regardless of whether the child is present, you must state this in the contract. If you do not take a security deposit, you may want to require that a parent must make full payment for the termination notice period with the written notice of termination. A Word of advice: If you find yourself in a situation where a parent owes you money and wants you to continue to care for the child without payment, think of yourself and your own family first. You are operating a business, not a non-profit social service. Stop caring for the child, give written notice that you are terminating the contract immediately for nonpayment and that you will file a claim in Small Claims Court and report them to a local credit bureau unless you are paid immediately. If the parent receives a Purchase of Care voucher, report the amount owed to you to DSS, and they Will not issue a new voucher for another provider until you have been paid.
What are some of the parents' responsibilities which should be listed in the contract? Complete the enrollment documents and provide updates as necessary on the following: - General info. questionnaire - Emergency card - Health inventory - Immunization record - Medical power of attorney
*Remove sick child from your home; don't bring child back until s/he is well. Be specific in your definition of a sick child and your requirements for readmission after illness.
*Comply with rules for administration of medication
* Provide supplies for child's special needs or for infant's needs, i.e. diapers, wipes, bottles of formula or breast milk, baby food (Do NOT supply these unless your contract requires parents to pay you for them.)
* Any equipment you ask parents to supply, i.e. car seat, stroller, playpen
* Provide change of clothing to keep at your home and proper outdoor wear on a daily basis
* Arrive on time to drop off and pick up child, notify you in advance of schedule changes and give you written notice if someone other than parent will pick up child
*Pay for any damage caused by the child, beyond normal wear and tear
*Provide copy of the court order if a non-custodial parent may not pick up child
*Participate in field trips or Conferences
What are some of the provider's responsibilities which should be listed in the contract? * Provide appropriate atmosphere and developmentally appropriate activities (Include a list of examples if you wish)
* Comply with regulations
* Provide nutritious meals and snacks (let parents know you are on the Food Program and follow their nutrition guidelines)
*Give emergency first aid within your ability and call for help as needed
*Provide guidance and discipline (state your philosophy on discipline in detail)
*Substitute care -- when do you provide it, who are your subs, when are parents on their own
* Transporting children in your car -- when do you do it, what are your safety standards, who pays when there is a cost for a field trip
* Getting children to and from school -- do you transport children to and from preschool kindergarten, school or bus stop, or are parents responsible for setting up preschool car pools and school age children out of your care from the time they leave your property in the A.M. until they return in the P.M.?
* Provide consumer pamphlet
* Report suspected abuse or neglect
* Provide annual tax statement of fees paid
* Notify parents of injury immediately and of exposure to contagious illness
What about holidays, vacations, absences and other closings? Try to give yourself a paid holiday at least once every 6 to 8 weeks. If parents get a paid holiday, so should you. If your spouse has a paid holiday, you should take it too. Recommended minimum: New Year's Day, President's Day, Good Friday, Memorial Day, July 4th, Labor Day, Columbus Day, Thanksgiving and the day after, Christmas Eve, C and any religious holiday you personally observe. (I have a friend who claims Opening Day of baseball as a personal religious holiday. If you need it, put it in the contract.)
Do parents pay you when they are on vacation? If not, how much unpaid vacation time do you allow them? Some providers give parents a week or two of unpaid vacation time each year, but most require payment for unscheduled absences. If you don't have paid vacation for you in your contract, add it. Give yourself at least 5 days total of sick leave and personal days, too. You're a professional. You deserve it.
Now, let's talk about the dreaded Snow Days. Under most circumstances, if schools are closed but parents are working, providers can be open and parents will pay-for a full day of care. That's the easy case. What does your contract say about the days when you are open for business but parents do not have' to go to work? Most providers are paid when children are absent, regardless of the cause. Snow days should not be an exception. So, if you are open and a child's parents are excused from work because of snow, can they bring their child to your home and go to the mall or the neighborhood tavern? I have spoken with a provider who treats snow days like federal holidays. Her theory is that if parents are off with pay, so is she. This is a difficult section of your contract to write, so just set a policy you think is fair and stick with it. Remember to include a provision that you can close for bad weather, or any other reason, if you think it would be unsafe for parents to bring children to your home. (Examples: icy roads and walkways, lack of heat or hot water in your house, power failure.)
What other policies should be covered in the contract? *Be sure to include your philosophy on toilet learning and your expectations of parents during the learning period, or your may find that the children whose wet and soiled clothing you change throughout the day are put in diapers as soon as they arrive at home. Demand consistency during the learning period from the parents.
*If you require all children in your care to observe quiet time by resting or napping, include this in your contract. (If you don't have quiet time, please let me know how you preserve your sanity.)
*If you do not allow weapons, war games, martial arts play and violent action figures in your home, put your policy of peacefulness in your contract. I know it is impossible to exclude all play involving shooting, killing and general mayhem. I have watched boys make weapons out of all the usual implements (blocks, sticks, fingers), and I've even seen the heads removed from Barbie dolls so they more closely resemble guns. I still maintain that my home is a peaceful place, and I ask my children and their parents, to keep it that way.
*If you have a policy concerning toys brought from home, include it in the contract. Most providers say that any toy brought from home must be shared like other toys, with the exception of security objects. My policy is that security objects which cannot be shared come out only at nap time.
How do you handle parent/provider communications? *Include a commitment in the contract to maintain open communications with parents, and let them know how you plan to keep the fines open. If you distribute a newsletter, send home daily reports, keep a notebook in the child's diaper bag or backpack or have regularly scheduled conferences, tell parents what to expect from you and what you expect of them. Let parents know that closing time is not the best time for them to come to you to discuss their concerns but you will arrange time for a telephone conference or a meeting at a mutually convenient time. Be sure to tell parents about exciting milestones their child reaches and good behavior as well as problems you an d the child may encounter.
How can the contract be terminated? My contract can be terminated in the following ways:
*By either party at the end of the 2 week trial period;
*By either party with 2 weeks notice or if the other violates the terms of the contract (if the parent doesn't pay or the provider doesn't provide care);
Barb's Little Dumplin's
Parent Handbook Contract