You may find yourself at the point of needing a new waste contract.
Maybe you have just had enough of your hauler and their terrible service. Maybe you’ve realized that you’re paying ridiculous rates. Maybe you’re sick and tired of battling the same issues over and over again.
Whatever the reason, you’re officially done and you want out.
You’ll need to:
Consider whether you actually can cancel your waste contract.
Cancel your auto-renewal clause
Compare bids
Let your current hauler know you are terminating service
Getting a new hauler can seem like a daunting process, but these step-by-step instructions below will show you exactly what to do.
Consider whether you can cancel your waste contract.
Most waste hauler contracts have 3-5 year terms. To cancel without a incurring an exorbitant fee, you will need to be in the last 3-6 months of your contract.
If you find yourself in this position, congratulations! You ‘l be able to get a new waste hauler soon.
However, if you’re not nearing the end of your contract, you’ll need to carefully consider whether it’s worth terminating the contract and incurring the associated fee. Usually, this fee is the average of the past six months worth of invoices - which you have to pay all at once!
In some cases, it may actually be worth it for you to consider paying the termination fee. Ask yourself: is my staff spending too much of their time trying to rectify issues? Are my residents too fed up? What are the other ways that I’m incurring financial loss due to these continued issues?
Even if you can’t get out of your contract right away, definitely cancel the auto-renewal clause as we describe below. That will set you up for successfully ending your contract when your current contract permits.
Cancel your auto-renewal clause.
Most contracts will automatically renew for an additional term of 3-5 years. When this happens, you’ll be stuck with your current contract and the same hauler, which is likely not what you want.
Other contracts may only renew for a month-to-month with the same terms - you’ll need to check your contracts and see what yours specify.
You’ll need to send a letter (yes, through the mail) to notify your hauler of intent to cancel this clause. Make sure to send it certified mail so that you have proof of its delivery so the hauler can’t say they “lost” it.
It’s worth noting that once you cancel this clause, it doesn’t necessarily mean that you won’t get a new contract with the hauler. It just means that you have the freedom to look for another hauler to employ.
Compare Waste Hauler Bids
To find other area haulers, try googling “waste haulers near me.” Contact them and ask them to provide bids for servicing your locations. You’ll need to tell them:
The number of locations you have
The types of equipment at each site and their size
How frequently each site and equipment should get serviced
Most waste sales representatives will get back to you with estimates in under a week.
You’ll want to go over your list of service issues or questions with the haulers and see what their responses are. Some may be a bit cagey about their service reliability. Others may not care to limit their price hikes. Asking questions will root out the bad apples.
Let the best vendor know that you’d like to employ them starting on a specific date. Make sure to coordinate your waste schedule with your old and new waste vendors so that you don’t have a service gap!
Your new vendor will then send you a new contract. Look over it carefully - does it include all the language it needs to? Does it prohibit price hikes or cap them at a specified, annual percentage? Does it eliminate or cap ancillary fees?
Since you have at least one other bid from an area hauler, you have a pretty good idea of the market rates for waste services. You can use this information transparently with the hauler you’re negotiating with.
The hauler’s aren’t guaranteed your business until the new contract is signed, and you can go elsewhere, if necessary. So they have incentive to work with you!
Terminate the Old Service Provider
You will need to terminate per your contract specifications. Usually, you will need to send a certified letter to them informing them that you are terminating the contract and that they will need to remove their equipment by a certain date.
You’ll need to make a note of when the new service provider is dropping off their equipment, and when the old service provide will remove theirs. You don’t want to have a gap in service or too many dumpsters at your site!
Set Yourself up for Success with a New Waste Hauler Contract!
Follow these steps carefully, and you’ll be able to get a new waste contract with a hauler who is fairly priced and reliable. You, your staff, and those you serve all deserve to have trash service that isn’t a constant issue or headache! You’re well on your way to eliminating this sometimes aggravating problem.
What persistent issues are you having with your waste hauler right now? Let me know in the comments below.