Need a Commercial Services / Cleaning Services Contract in California? AroundWire Can Help

In California, contracts for commercial cleaning services typically require clear definitions of scope, frequency, and standards of work, often referencing industry benchmarks such as ISSA guidelines. Contractors must comply with the California Labor Code, including wage and hour laws, prevailing wage requirements for public projects, and strict rules on worker classification (notably AB 5, which limits use of independent contractors). Licensing is generally required at the local level, with many cities mandating business licenses and, in some cases, special permits for janitorial work. Under the California Property Service Workers Protection Act (SB 588), janitorial employers must register annually with the Department of Industrial Relations. Contracts usually specify minimum insurance coverages, including general liability, workers’ compensation, and often janitorial bonds. Indemnification clauses are common, shifting liability for property damage or injury. Payment terms are typically net 30 days, though public contracts may be subject to the state’s Prompt Payment Act. Risk factors include wage theft claims, improper disposal of hazardous materials, and noncompliance with Cal/OSHA safety standards. Dispute resolution often favors mediation or arbitration before litigation, in line with California’s preference for alternative dispute resolution. Local statutes, such as city living wage ordinances or green cleaning requirements, may further influence contract terms, especially in large municipalities like Los Angeles or San Francisco.