Waste Management Contracts: Have You Read Yours?
By admin on Jul 3, 2007 in Business Waste, Business
If your business has a regular waste management service, such as a wheelie bin collection, an REL or a skip, there is a good chance you will have entered into a contract. But are you aware of all the terms and conditions?
Most people are guilty of failing to read the small print of a contract at some point, myself included, but your waste management contract is one contract that you really should read before you sign.
What to look out for?
Whenever signing a contract it is a good idea of course to read all of the terms and conditions to make sure you are completely happy and comfortable with what you are signing. However at the very least there are certain terms that you should definitely pay attention to.
Duration - How long will the contract run for? In many cases the contract will be a rolling one year contract until it is terminated by either party. However, different companies will have varied contract durations so it is essential that you know the minimum contract duration before signing.
Price Increases - Most waste management contracts that I have viewed in the past have contained a clause allowing the waste management company to impose price increases as and when required due to increased costs. But how often will these price increases actually be imposed? Naturally this is an important question and one you should find out the answer to before signing the contract.
Some companies will only increase prices on 1st April each year in line with the governments increase in landfill tax. Other companies have been known to impose several price increases each year.
Termination - Virtually all contracts will contain a clause stating how the contract can be terminated. Unfortunately it is not always as simple as giving one months written notice. In the waste management industry it is not uncommon to have to give a minimum of 3 months written notice to terminate the contract.  Some companies even require customers to provide a minimum of 3 months written notice to expire 3 months after the anniversary date of the contract.   Â
Things to Remember
- Waste Management companies want YOUR business. If you are not happy with the terms of the contract, do not be afraid to NEGOTIATE.Â
- If you negotiate new terms, make sure these are amended on the contract before signing, or get them confirmed in writing by your service provider. Do not rely on verbal agreements or conversations.Â
- If something looks too good to be true, it more than likely is. In other words if you receive a quote that is much cheaper than all of your other quotes, find out how long the price is guaranteed for. If not you could end up having several price increases during the year.
Em | Aug 5, 2007 | Reply
also make sure that your contractor has the relevent permits and licences to collect, transport and dispose of your waste type.
They should be registered with the EA The EA website has a list of registered and licenced operators so you can check they are legit.
As a business you have a duty of care to dispose of your waste in a proper manner. This DoC means that if your waste is taken by an unlicenced operator and found fly-tipped YOU are liable. Big fines, possible custodial sentence.
admin | Aug 5, 2007 | Reply
Thank you for your comment, and yes you are right businesses do have a duty of care to make sure their waste is disposed of correctly. I have discussed this in an earlier article, which can be found here:
http://www.recyclingsupermarket.com/business-waste/duty-of-care-your-waste-your-responsibility/