BLOG NUMBER 9.31
Which Snow Removal Expert Provider Contract is Best?
According to snow expert, 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 three main types of contracts that a commercial property manager and a snow removal company may agree on:
1) Pay By Event Contract
This type of snow removal contract charges the client for each individual snow event. Services are provided after each event, including snow removal and treatment of walkways. 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 typically sets a fixed monthly price paid to the removal company throughout the winter season. These contracts can last up to three years. Over time, this type of agreement offers the best value and suits budget-conscious clients. In most cases, the number of snow removal events averages out by the end of the contract period.
3) Time and Materials Contracts
In this type of contract, the client pays the snow removal company only for the actual time and materials used during each snow event. The benefits of this arrangement can be uncertain for both parties. Contractors face uncertainty with this arrangement, as they must remain ready with equipment and supplies without any guarantee of snowfall—or income. Property managers often avoid time and materials (T&M) contracts because they offer unclear pricing and provide little motivation for the contractor to complete the work quickly Consult a snow expert about the full pros and cons to entering into this type of contract.
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