BLOG NUMBER 9.31
Which Snow Removal Expert Provider Contract is Best?
According to snow experts, there are several significant benefits for a commercial property manager associated with contracting with a snow removal company. This leaves room for shared liability for any accidents and is often more cost effective with no need for hiring more staff or buying removal equipment of your own.
There are 3 main types of contracts that may be agreed upon between the commercial property manager and the snow removal company:
1) Pay By Event Contract
This kind of snow removal contract implies a charge for each isolated snow event after which services are applied to your property and the snow is removed and/or walkways treated. The extent or depth of the snow accumulation often determines the cost of each event. This would be the alternative to paying a fixed price, often a preference of budgeting allowances. When considering a by-event contract versus a fixed-price agreement, seek the counsel of a snow expert witness to inform your decision.
2) Seasonal Contract
A seasonal contract will usually set a fixed price paid to the removal company each month of the winter season for a period of up to three years. This kind of contract over an extended amount of time will give the client the best value and is ideal for a budget-conscious client. In most cases, the number of removal events each year average out fairly evenly by the end of the contracted period.
3) Time and Materials Contracts
In this type of contract, the client only pays the snow removal company for the exact amount of time and materials spent during each event of removal. The benefits of this kind of contract are debatable for either party of the contract. On the contractor’s end, while they must be prepared for snow with the proper supplies and equipment, there is no guarantee of a snow event, therefore no guarantee of income. Property managers may not prefer a T&M contract as they usually lack specific pricing details as well as an incentive for the removal company to finish in a timely manner. Consult a snow expert about the full pros and cons to entering into this type of contract.
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