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How do you handle cancellations on a seasonal contract

Discussion in 'Commercial Snow Removal' started by Clean Cut Lawns, Sep 23, 2003.

  1. Clean Cut Lawns

    Clean Cut Lawns Banned
    Messages: 53

    How do you handle cancellations on a seasonal contract?

    If you have a seasonal contract, 3 years how would you handle a cancellation if it were to arise?

  2. nsmilligan

    nsmilligan PlowSite.com Veteran
    Messages: 704

    If it's a contract, then the contract would specify the length or term, of the contract, and how and why it can be canceled. A "contract" is binding on BOTH parties to the contract, one party to the contract can only cancel within the framework of the contract, i.e you weren't getting paid, or you weren't plowing as specified in the contract. If the contract is not renewed then that's a whole new ball of wax, and there is no obligation on the part of either party to renew a contract, unless of course there was a clause in the original contract dealing with renewals. If the contract is verbal, and the client says they are canceling, then there is little recourse, maybe whining a little, as the saying goes verbal contracts are worth about the same as the paper they're written on!
    Losing a contract because you were under bid on renewal, or the it was given to a friend, etc, is part of doing business.

  3. Clean Cut Lawns

    Clean Cut Lawns Banned
    Messages: 53

    nsmilligan, thanks for the reply,

    I always try to include a termination clause: ie

    "This contract is terminable for cause only. As a condition may present to termination of the contract, COMPANY NAME agrees it is dissatisfied with the performance of CONTRACTOR under the contract that a notice of said grievance is to be directed personally to ME, President/Owner of CONTRACTOR. Written notice is to follow with in 24 hours and be directed to CONTRACTOR, Address, CITY, STATE, ZIP Attention to ME, President Owner. If resolution of the grievance has not commenced in the period of time from oral notification to the receipt of said written notification; CONTRACTOR would have then forth-eight hours from said written notification to commence cure of complaint."

    BUT.. what happens if in the second or third year this does arise?
    And we get hit with big time snow the first and second year. but the third year we have problems and they want to cancel and no matter what we do to make them happy their not happy and use that as a way to cancel the contract. How would you go about getting your money for the first 2 years of all that snow?

    Sorry for the long post!
    thanks for your help!
  4. Lawn Lad

    Lawn Lad Senior Member
    Messages: 407

    Here is our cancellation clause.

    2. Termination. Either party may terminate this Agreement upon (48) hours of prior written notice to the other party. The Owner’s obligation to pay the Contractor for all fees associated with the Services performed up through and including the day of termination or expiration of this Agreement shall survive termination or expiration of this Agreement. A seasonal contract cancelled during the term of the contract may at the discretion of the Contractor be recalculated and invoiced on a per occurrence basis to cover work completed relative to the date of the contract cancellation.
  5. Clean Cut Lawns

    Clean Cut Lawns Banned
    Messages: 53

    Lawn lad thats exactly what i was looking for.

    Thanks bud!:nod: :nod: :nod: