How Do I Change To "Contracted Hours"

[Blackcat31]

Okay, one of the best things I've learned from this forum is to do contracted hours versus stating specific times I am open/closed. My problem now is how do I word that in a notice of change letter to parents that beginning in January 2011, I want all the families to "contract hours" with me. One of the biggest things I will have a problem with is getting families to understand the concept.
For example: I used to bill for full days (which is anything over 5.5 hours) so I would have parents who schedule 6 hours and they pay the full day rate. Then they would call and say "oh, I'm gonna be a few more hours" and it would be okay because I am already being paid for a full day, but now, I have a certain family that wants to come from 7-1:00 and another who wants to come from 1:30-6:00. So basically they are sharing one space which will work out great. How do I word an update so that parents understand that they can't just go over their contracted hours just because they pay a full day rate. Yes, I could change my billing methods, but in all honesty, I am following the guidelines about billing from the CCAP (Child Care Assistance Program) and I have alot of families on the program so I want to keep it that way.
This is tough because the initial reason I went to full and half day rates were because I wanted to eliminate all the trouble that goes with trying to accommodate a bunch of part time families and their varying schedules. Now with enrollments everywhere down and new children scarce, I find myself having to re-adjust my ways again.
It is my fault for allowing these families to stay longer and not caring, but now I do and have to figure out a way to do contracted billing/scheduling and STILL stay within my licensing capacities. Any ideas would be greatly appreciated....Please help!?!?!

[Michael]

Other threads related to Contracted Hours: https://www.daycare.com/forum/tags.p...ntracted+hours

[legomom922]

In your situation, with those 2 famlies I personally would not do contracted hrs. I would love to have those 2 famlies here with me! See, I charge by the day, so I get $35/day and I have 2 part time famlies. One family is only here 4-5 hrs anyway, so If I were to offer them a PT rate or contracted hrs, I would lose money! So if your 2 famlies were mine, I would be making $70/day for technically using uo only 1 spot! You are blessed!

Since I can only have 2 kids anyway in my state without a license, I make out better having more part time famlies. I could have 4 part time famlies per day and get $140/day this way. So I guess you have to play with your numbers, and see how you make out better. Contracted is not always going to be better.

Something to think about too is what happens when you need a favor from them, and ask if they can come wed instead of thurs or can they come at 9am instead of 7 because you have a appt or something, because then they could say nope, sorry those arent my contracted hrs. Just some stuff to think about.

[kidkair]

I am going to a sliding scale based on pick up time. I already require that every child is here by 9 am and not picked up until 3pm which allows me to keep to a schedule with the kids. I'm starting pick up times at 3pm and going to 5pm though some of my current clients need longer than that. I'm starting new clients on this and I'm not sure if I'll change current clients over to it. I got the idea from nannyde.

[marniewon]

Are the part time families you mentioned current clients, or new? If new, I would just contract their hours from the beginning. Or, if they are current clients switching hours, you can just put it on their new contract. If they ask about it, you can verbally explain to them about the ratios, and how you have other children coming in after they leave, and you need them to stick to the hours they have set. Make sure to go over the contract with them before they sign it, pointing out the contracted times, the fees if they go outside of those hours, etc. In fact, you can change everybody if you want, by just changing it on your contract, then pointing it out to them. Are you re-doing your contract for 2011? If you really want to put something in writing in your handbook or contract, you could say something like: Due to new families attending (or hours switching of current families, whichever is the case), I will need to have set hours for each family, so I don't go over my ratios. You tell me what the earliest you need to drop off so you can work on time is, and the latest you will be picking up, depending on what time you get done with work and how long you estimate it will take you to get here. These will be your contracted hours. Please try to stay within your contracted hours, as fees will be assessed for going outside of those hours.

Something like that anyway.

[legomom922]

You tell me what the earliest you need to drop off so you can work on time is, and the latest you will be picking up, depending on what time you get done with work and how long you estimate it will take you to get here. These will be your contracted hours. Please try to stay within your contracted hours, as fees will be assessed for going outside of those hours.

The problem I see with this is that they will contract the latest that they can just to cover their own butt, and may pick up alot earlier! I had 1 family once who tried this trick on me, because they were trying to avoid the OT and late fee for when the winter came and their commute took longer. They wrote on their contract their drop off time would be 730am and pick up be 530pm, but they never showed until at least 8, 815, 830 and sometimes 9 and pick up was really anywhere between 4 and 515. You just never know what kind of stunts they are going to pull. They may add an extra hr just to go shopping, or something or go home. You just never know how its going to work out.

[nannyde]

I am going to a sliding scale based on pick up time. I already require that every child is here by 9 am and not picked up until 3pm which allows me to keep to a schedule with the kids. I'm starting pick up times at 3pm and going to 5pm though some of my current clients need longer than that. I'm starting new clients on this and I'm not sure if I'll change current clients over to it. I got the idea from nannyde.

Just make sure they are allowed only nine hours within that rate. It doesn't do any good if you are allowing another half hour or hour a day. By the end of the year you have done WEEKS more of care than the nine hour a day kid.

Parents have an amazing way to get to your house right after work when it comes down to money. The other GREAT thing is that you end up with kids having a LOT of face time with their parents every day. Parents with quantity awake time with their kids are way better people to work for and their kids are happy balanced kids. It's not a perfect science but it sets the stage for healthy happy balanced families which makes YOU happy and gives you longevity in the business.

[legomom922]

Just make sure they are allowed only nine hours within that rate.

This what I do since I do not have contracted hrs. If they go over their 9 hr limit, then late and OT fees kick in. They will hurry to get here if they they know there is an extra $10 fee added to their bill for the day.

[legomom922]

The other GREAT thing is that you end up with kids having a LOT of face time with their parents every day. Parents with quantity awake time with their kids are way better people to work for and their kids are happy balanced kids. It's not a perfect science but it sets the stage for healthy happy balanced families which makes YOU happy and gives you longevity in the business.

I would not agree with this..It sounds good, and we may like to think this is happening, but we dont know what they are doing with their kids once they leave our homes. I know for a fact that one of my DCM's, just goes and drops DCG off with another sitter sometimes during the week so she can do other things. The truth is, we cannot make or control the parents, and they are going to do whatever they want to do once they leave.

[DancingQueen]

Do what I'm doing. Every year 1/1 I create a new contract.
This is my chance to change the way things are done.
So figure out what you like or don't like and what you want - and let them know that you'll be updating everything for 1/1 - it gives them 3 weeks notice.

[Blackcat31]

In your situation, with those 2 famlies I personally would not do contracted hrs. I would love to have those 2 famlies here with me! See, I charge by the day, so I get $35/day and I have 2 part time famlies. One family is only here 4-5 hrs anyway, so If I were to offer them a PT rate or contracted hrs, I would lose money! So if your 2 famlies were mine, I would be making $70/day for technically using uo only 1 spot! You are blessed!

Honestly, this is exactly what I am trying to do. Since there is a shortage of kids in this business/economy, I am trying to accommodate families who have part time schedules and try to make the most $ in the smallest amount of spaces. Most my part itmers are young so keeping the group smaller is easier. Maybe contracted hours isn't the solution?!?!

I am going to a sliding scale based on pick up time. I already require that every child is here by 9 am and not picked up until 3pm which allows me to keep to a schedule with the kids. I'm starting pick up times at 3pm and going to 5pm though some of my current clients need longer than that. I'm starting new clients on this and I'm not sure if I'll change current clients over to it. I got the idea from nannyde.

That's a great idea...

Are the part time families you mentioned current clients, or new?

One family is old and one is new.

I think I should explain more details: The old family is on assistnace. They are allowed 6 hours per day OR 60 hours bi-weekly (I bill the county the 6 hours per day and I get paid the fullday rate from them. I stretched the 60 hours out at 6 hours per day because then I get paid for for all 10 working days in a two week period. I messed up by allowing them to go over their 6 hours here and there because I was already being paid for the full day after they reached 6 hours so I didn't care that they went over....now I do care because I have a family who wants care from 1:30 to 5:30. The old family ALWAYS drops off at 7:00 so ideally I'd like them to pick up after their 6 hours are up. (They don't work...they are suppossedly job searching and have some other family issues that allow them to be on assistance without actually having a job..stuff I don't think I can or want to get into...but either way they get assistance.)

So I guess I need to just flat out tell them that they can only use their 6 hours and no more. I know it is my fault for allowing them to go over in the first place but I only had full time kids before and I also had a full enrollment. I lost 5 to kindergarten this year and as everyone knows it is tough filling those empty spots lately. I also have a few other cash paying families who I know don't actually work the 10 hours per day I am open but since they pay a full day rate they use it which was okay before. But now I am thinking I would like to have people pay for the hours they actually need and since my new group of kids are young (10 months-2.5 years old) I just know my days will be crazy. I got spoiled having so many 5 year olds last year and only one kid under 3. This is where I think daycare gets hard...you let things happen or slide because it works at the moment and when new kids start or old kids leave the whole dynamic changes and what once worked no longer does..

[legomom922]

I would think that the contracted hrs would not work for those 2 PT famlies. If the famliy on assitance is only allowed 6 hrs, then what I would do in this case, is either charge them an OT fee for any hrs over the 6 (which you know they wont chose that if now they would habve to pay that out of their own pocket and at $10 an hr, they won't be able to anyway ) or tell them they HAVE to pick up after 6 hrs because thats all they are allowed. I am sure that is the option they will pick!

Since this is your business, YOU are the one that can choose how or how much people pay. You can have some pay by contracted hrs, or by the day. All famlies don't have to be on the same agreement. You can simply put in your contract that agreements will be based on each famlies needs. That gives you the flexability that you are looking for and then you can tailor it to each family to maximize your earnings. Then just type up a extra sheet or add a line to your contract that states what this particular family agreement is.

I have several "blanket" contracts I use and I give them the one to sign that meets my needs. they don't have to know I have others that are worded differently.

[Blackcat31]

I would think that the contracted hrs would not work for those 2 PT famlies. If the famliy on assitance is only allowed 6 hrs, then what I would do in this case, is either charge them an OT fee for any hrs over the 6 (which you know they wont chose that if now they would habve to pay that out of their own pocket and at $10 an hr, they won't be able to anyway ) or tell them they HAVE to pick up after 6 hrs because thats all they are allowed. I am sure that is the option they will pick!

Since this is your business, YOU are the one that can choose how or how much people pay. You can have some pay by contracted hrs, or by the day. All famlies don't have to be on the same agreement. You can simply put in your contract that agreements will be based on each famlies needs. That gives you the flexability that you are looking for and then you can tailor it to each family to maximize your earnings. Then just type up a extra sheet or add a line to your contract that states what this particular family agreement is.

I have several "blanket" contracts I use and I give them the one to sign that meets my needs. they don't have to know I have others that are worded differently.

Aha...that makes things MUCH simpler....I never really thought about doing individual contracts. I mean everyone has one but I never thought about doing individual rates and fees...makes a ton of sense (and cents...LOL!) that is a great idea! thanks legomom!!

[legomom922]

You are welcome

I can legally only have 2 at a time, so I have to make the most that I can.

Another tip I use, is that I provide "drop in" care for errends or whatever for up to 3 hrs only for $20..I say only 3 hrs because I can have more than 2 as long as they are here less than 3 hrs. Think how many drop in you can get for that throughout the day without being illegal for $20 a piece! Technically I could have 4 different drop ins a day for an extra $80/day on top of my $140/day for 4part time famlies. I love part time clients!! I prefer that over FT.

[marniewon]

I would prefer part-timers too, if I could get them all to match up and balance each other out for the week! I have one pt family who are here T,W,Th, and I can never find another family who ONLY needs M and F!