Many companies that provide landscaping services also provide snow removal services. The amount of snow that falls each season is different. You might not be able to tell exactly the amount of snow you will be dealing with, but a seasonal snow removal contract will help you protect your interests. You may choose to provide snow removal services to residential places, commercial spaces, or the government. Each type of contract will be unique with specific details. It requires the service provider to have the right snow removal contract template.

Snow Removal Contracts

What is a snow removal contract?

A snow removal contract is a signed agreement between a snow removal service provider and their client. The form provides the details of snow removal according to the client’s desire. It protects the service provider and gives them better financial security. There are different types of snow removal contracts.

Types of snow removal contracts

The different types of snow removal contracts are classified according to the scope of work involved. Each type of contract is laid out by paying for service terms. Here are the different types of snowplow contracts.

  • Seasonal snow plow contracts

This type of contract is also known as a fixed fee contract. The client signs an agreement with a snow removal contractor to provide the services for a specified time. Usually, the service provider gives a one-time fee as agreed with the client.

The only disadvantage of this contract is that the price cannot change even when snow accumulates heavily in a given period. It doesn’t matter the number of pushes the service provider will do, the materials they use, labor, or the amount of time they will spend on the ground.

The contract time can range between one year to three years. Some service providers who prefer this type of contract put a cap on the number of pushes they will provide. Any push beyond that number attracts an additional charge. This is particularly important when the amount of snow in a given year falls beyond measure.

  • Time and materials snow plow contracts

This type of contract is mainly applicable to commercial snow removal contractors and large homes. The service provider gives a snow removal proposal where the cost changes every time a service is rendered.

Payment is based on the services provided each time. If the amount of snowfall is limited, the service provider receives lesser income. When the snow is more, they receive more income. The service provider cannot fully depend on this type of contract for a smooth financial flow. What they earn entirely depends on weather patterns.

  • Pre-event snow plow contracts

This type of contract is closely related to the per push type of contract. The service provider gives a snow removal proposal where the charge after each snowstorm. That means they first do the work and then charge.

The only problem is that they first agree with the client on the amount they will charge after each removal. If the snowstorm is heavier in a given season, the client will save money, but the service provider will lose. They will spend more money on labor, yet they will charge the same flat rate.

  • Per push snow plow contracts

Like the pre-event contract, a per push contract is charged at a flat rate. The only difference is that the service provider gives a snow removal proposal where they charge every time they come out to push. The more snowstorms appear often, the more pushes you will do.

Most snow removal contractors prefer this type of service, especially when dealing with residential properties. They can charge for pushing snow on the driveways, garden, and backyard and have a separate charge for deicing and roof shoveling.

  • Per inch snow plow contracts

Another name for per inch contract is per event contract. The service provider charges per inch. In one storm, the snow could accumulate up to three inches, and in another, it could pile up to 5 inches. When the accumulation is more, the service provider earns more. However, they may earn too little when the snow is lesser.

Snow Plow Contracts

What to include in a snow removal contract template?

There are different types of snow removal contract templates you can choose from. What is most important is to know the kind of client you are dealing with. If the template is for a commercial snow removal contract, it will contain different details compared to a residential snow removal contract or government. These are the main details that every snow removal contract should have.

Property address

Whether it is a residential or commercial contract, ensure you have written the pro[erty address.

  • Road
  • City
  • State
  • Code

Customer information

If you are providing a seasonal snow removal contract to a residential client, the customer contact information to include is as follows:

  • Customer name
  • Email address
  • Telephone contact
  • Postal address

If it is a commercial snow removal contract, provide the following details.

  • Company name
  • Location
  • Road
  • City
  • State
  • Email address
  • Telephone contact
  • Postal address
  • Contact person

Service provider information

The snow removal service provider should include their information in the snow removal contract template. Write the following details.

  • Company name
  • Contact person
  • Email address
  • Telephone contact
  • Postal address
  • Company physical address
  • Date: Provide the date when the seasonal snow removal contract was signed.

Term of service

This is the time within which the snow removal service will be provided. Specify the start and end date.

Definitions

The snow removal contract template should contain a definition of what a snow event means. What it might mean for one client could be different from another. To another, a snow event could mean 3 inches of snow.

To another, it could mean one inch of snow. This section is very important because you will be required to provide the service only when the snow reaches what the client describes as a snow event.

Description of the property

This is the property where you will be providing snow removal service. Describe in detail every area where the service will be required. For example, describe areas such as parking lots, entrances, driveways, sidewalks, roofs, etc.

Scope of services

You must describe the scope in detail. It may cover services such as snow plowing, blowing, shoveling, ice removal, etc. Any additional services may attract a separate cost.

Price

The cost of the services is very important. The price can be charged as per event, per push, per inch, monthly, etc. Provide the payment methods accepted.

Other conditions

Give details for these conditions.

  • Days when your company cannot provide snow removal services (like New Year)
  • Penalties for late payment
  • Any additional costs when the snowstorm is too heavy
  • Insurance services provided by your company (liability, workers compensation, snow removal tools insurance, etc.)
  • Conditions for contract termination
  • Fines applicable for termination

Commercial Snow Removal Contracts

How to get a snow removal contract with the government?

Government contracts require a detailed process. When the government wants to hire a contractor to provide snow removal services, the government department involved advertises in its contract portal.

For example, a certain county administration could need the services. The county administration will prepare a snow removal proposal. The form is usually titled “Invitation For Proposals.” It provides the details of the snow removal services required. It will detail materials, tools, equipment, and services. The services could be plowing, snow removal, salting, etc.

The snow removal service provider is required to carefully ready the proposal instructions. The instructions are usually detailed and will include general liability, payment, insurance, tax, etc. Fill out the bid form and submit it to the address provided therein.

The contractor should be keen on the day provided for a site visit. If they fail to attend the site visit, they cannot win the contract even if their proposal was the best. Ensure to attend the site visits and get a site visit certificate. It is usually attached with the bid form.

If you win the bid, you will be alerted, and, in the meantime, a form of contract will be prepared. The form will confirm that your company submitted a proposal and won the bid. It will give a lot of details of exactly what should be done during service delivery. It provides responsibilities for both parties.

Commercial Snow Removal Contract Versus Residential

Commercial  

A commercial snow removal contract provides snow removal services to commercial customers. They mostly expire after 12 months, although some business owners may choose to give three-year contracts.

These types of contracts have a bigger scope. Most commercial snow removal contracts require the service providers to go through a tendering process for competitive bidding. It is a requirement by many businesses, although some may choose to use the services of a specific service provider.

The categories of customers that fall under commercial customers are as follows:

  • Hotels
  • Resorts
  • Retailers
  • Health facilities
  • Institutions of education
  • Commercial office buildings
  • Worship buildings
  • Large residential estates

Residential

Residential customers mostly give a seasonal snow removal contract. They do not require the service provider to go through a bidding process. The number of residential customers a service provider can get depends on their marketing aggressiveness or quality of service.

When the service provider offers unique services, they can likely benefit from referrals. The customer orders for services when and where they are required. The service provider requires to have a customizable snow removal contract template that they can keep editing every time they get a new customer or when the scope changes.

This type of service is provided to customers who own:

  • Homes
  • Apartments
  • Seniors’ homes
  • HOA communities

Snow Removal Proposals

Tips for getting a snow removal contract

Whether you are anticipating getting a commercial snow removal contract or a seasonal snow removal contract on a residential property, these tips will help you increase your chances of winning one.

  • Go out and speak to people

Most commercial customers will ask you to bid or send a snow removal proposal. However, there are thousands of property owners out there who need the services without requiring proposals or bidding.

Go out and visit them, making your proposals verbally. You may have a snow removal contract template with you. Sometimes you can get a customer who needs your services immediately. Visit small stores in our neighborhood. Go to the gas stations, homes, daycare centers, and small commercial buildings.

  • Prepare a reference list

Every time you successfully complete a contract, request the customer for reference. They may give you their telephone number and permit you to share it with other potential clients.

  • Find out who’s the decision-maker

When you visit a potential customer, establish the decision-maker and speak to them. If it is a business, talk to the owner. If it is an office, talk to the concerned manager. Your proposals or contact cards might be going to the wrong places without bearing fruit.

  • Learn the business

If you are new to snow removing business, it is necessary to learn its rules. The first thing is to know where and how to get clients. Your next thing is to learn how to create a snow removal contract template. Learn all the information that is required to be filled.

Pricing is an important factor to learn. There are different methods used in pricing. You could charge per hour, per push, snow depth, etc. Each category has its unique price. Learn the precautions to take and how to overcome challenges if they occur. Finally, learn the equipment required for the work. Do not forget to check the local law requirements.

  • Meet client expectations

From your first client, your progress will be determined by how well you meet client expectations. The client expects you to start work at the time you agreed. They expect you to remove all snow without damaging their property. If you deliver services according to client expectations, you will be certain they will give you more work in the future or refer you to another client.

  • Go an extra mile

Every business field is competitive. You could have ten competitors providing the same quality of services. What will distinguish you from them is the extra mile you will go. Some customer premises are busy during the day. It might require you to remove snow at night or before business hours. If you can go that extra mile, you will keep winning customers.

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Tagged:ContractProposalSnow Removal
TemplateLab May 10th, 2022