Every winter, it seems a common sight that various areas get choked under the snow. Fortunately enough, snow removal companies are out there, undertaking to get rid of the heavy snow in both residential and commercial establishments.
Yet working on snow removal is not an easy job. To prevent issues between the contractor and the client and set up the service terms, a snow removal contract is therefore created.
What Is The Snow Removal Contract?
A snow removal contract is a legal agreement signed between the contractor and the client. The contract here defines the terms of services which will be undertaken by the contractor to execute the duties.
It also contains important information such as the time needed for the completion of the work, the remuneration to be provided, and the payment mode. Furthermore, it also contains the duties and responsibilities of both the parties i.e. the contractor and client.
It is a legal document that binds both the party and any violation will be dealt with by proper authorities. The laws governing the snow removal contract will be in accordance with the law of the country it is drawn up and signed in.
When Is A Snow Removal Contract Needed?
As there is a lot of competition among different contractors, they prefer to draw up these contracts with the clients for security purposes. Such a contract opens up a lot of opportunities to both the parties in terms of insurance, professionals involved, tenure, etc.
The contracts are normally prepared at the beginning of the work. Work can only be started once they are signed.
What Is Covered In A Snow Removal Contract?
Ideally, a snow removal contract should include all the information related to guarantee of performance, the coverage of insurance, how the payments will be made and standards to be followed.
In addition to the basics, a more detailed description of the jobs should also be mentioned here with specifics. Information like salting, sanding, and removal of snow should be given. Also, what kind of equipment will be used along with the number of people working should be mentioned.
The snow plow contract should have a blueprint for the work to be performed. It must provide information to the clients of the overall performance and how each component of the work will be executed. Some of the important features of a contract include:
The words and details of the contract should be clear and simply worded without any possibilities of ambiguity.
The contract should be fair to both parties and should not burden one more than the other. The scope of work, the details of the tasks, and service to be provided should be explained clearly to erase any doubt among the parties.
The contract should give a detailed explanation of the costs including pricing of the project and additional costs.
Types Of Snow Removal Contracts
These contracts allow the contractors to set the price and maintain their budget prudently. With this type of contract, contractors may charge by the hour which can be profitable and lucrative, especially if the establishment is a big one.
These contracts fix the price at the beginning of the contract. The price remains the same irrespective of the number of times snow is removed during the contract period. These contracts last for around 3 to 5 years.
These contracts rely on the level of snow needed to be removed. They usually have brackets such as 1-3 inches, 3-6 inches, under 6 inches, and so on. The inches are generally fixed by the local weather stations to avoid conflict between the parties. Budgeting is a concern in this type of contract.
- Per event
This type of contract allows the contractors to charge per event or snowstorm. Such agreements are lucrative for contractors where snowstorms are rare but do not bring in much profit for places where there are regular snowstorms.
- Pay per push
This is more like a pay-as-you-go contract where you can charge money for each visit. It is a beneficial contract where snowstorms are regular and contractors have to visit the establishments more than once a day.
The Dos And Don'ts Of A Snow Removal Contract
- Terms and Conditions
The contracts should have detailed terms and conditions with a clear mention of the start and end dates.
- Changes to the terms
The contract must have a room for changing the terms of contracts with the written consent of the two parties. This includes the termination clause for both parties.
There should be clear communication of the areas and items which should be excluded from the purview and scope of service requirements.
Concise and detailed descriptions of pricing and payment terms for the work done should be included. This should factor in additional costs borne by the contractor if any.
A snow plowing contract without a clear mention of the timing could lead to very slow response time.
- Hidden Cost
Any room for hidden costs should be avoided and terms of pricing should be illustrated without any option open for misinterpretation.
If you are looking for the steps to draw up your first snow removal contract, CocoSign is the place to go. CocoSign has all the information you need to start on your snow plowing contracts and legal agreements. Visit CocoSign library and select the right snow removal contract template you want among the thousands of templates available there.
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