Most hauler contracts are written to ensure that haulers make money - and keep making more.
Typical hauler contracts:
Allow for unlimited price spikes
Have inaccurate service levels
Charges you for additional fees
Makes it nearly impossible to cancel
Has no provision for bad service
If your contract was not adjusted and has these default specifications, you will almost certainly pay more than you need to for your waste expenses.
Today, we’re going to talk about the last two contract specifications that cut into your bottom line.
Waste Contract is Nearly Impossible to Cancel
What’s worse than a bad contract? Being completely stuck in it.
There are two aspects of contracts that make them difficult to exit. First, most contracts automatically renew for long terms - usually five years. So you may realize you want to change your contract, but it can be almost impossible to do so if you are in the middle of a five year term.
Second, contract termination is de-incentivized since it typically includes hefty associated fees. On rare occasions, it may be worth it for your company to terminate their contract and pay the fee so that they can hire a cheaper (or more reliable) hauler. These fees are usually equal to the past six months of charges, which is likely no small amount.
If you do chose to terminate, you have to send a termination letter within a very specific time frame prior to your contact renewing. Most of the time, this termination letter has to arrive at your hauler no more than 180-90 days prior to your contract renewing.
You must send a certified letter - not an email - specifying that you are terminating the contract and/or cancelling the auto-renewal clause.
Cancelling the auto-renewal clause allows you to create a contract with the same vendor with more favorable terms.
Has no provision for bad service
When there are service issues, you should be able to get them resolved quickly and promptly.
When a hauler misses a pick-up, it should be easy to get in touch with them to resolve it. If they’re leaving stacks of garbage around the dumpsters or make a mess every time they service them, the hauler should only need one request to service more conscientiously. But this isn’t often the case.
Why pay someone for a service who is actually making your life (and your staff’s lives) more difficult? If you had multiple hauler problems with no resolution in sight, you need to know that you have an out if you need one.
A thorough contract will include steps for resolution - and what will happen if you continue to be dissatisfied with service levels.
You Don’t Have to Overpay for Waste Services
By default, your haulers are going to let these things happen to your contract. But you don’t have to let them. You can solve current problems and prevent new ones from happening - all it takes is effort, and some persistence.
We help companies across the nation find waste solutions and implement changes on their behalf. Don’t be part of the 95% of companies that are overspending on their waste disposal! Drop us a line to learn how you can fix your contract.