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New Contract

Discussion in 'Business Fundamentals' started by Got Snow, Sep 23, 2003.

  1. Got Snow

    Got Snow Senior Member
    Messages: 104

    Hey all,
    Back for another season. I have revised my contract and would like some feed back on it. It is not done, however the content should remain as shown, the remaining details are just for appearance.

    Take a look and opine!



    PS-FAQ section under construction
    :drinkup:
     

    Attached Files:

  2. Snoworks

    Snoworks Senior Member
    Messages: 466

    Can you show us the back side of the contract!

    I am assuming this contract is for residential driveways. From what I see on your contract, as is, you are leaving yourself open in many areas.

    -One being damages - what you are responsable for and what you are not responsable for.
    -Also, what are your contract starting and ending dates.
    -Need something in contract explaining that you dont remove snow from property. - If needed it is extra.
    -Always good to throw in explanation of how service will be performed if cars are parked in areas to be plowed. - Saves alot of calls down the road.

    Chuck B.
     
  3. Got Grass?

    Got Grass? Senior Member
    Messages: 641

    Got Snow, check your Pm's
     
  4. Santo

    Santo Banned
    Messages: 255

    What will you charge for 7.5" , 12" , 15" and over 2' ? Very confusing.
     
  5. JohnnyU

    JohnnyU 2000 Club Member
    Messages: 2,040

    Have you finished and/or revised this contract? I'm curious to why you have an FAQ section, or at least whats defined in it.
     
  6. Got Snow

    Got Snow Senior Member
    Messages: 104

    Update

    Thanks for all your replies and opinions.

    The front side has been revised a bit:
    added 24hr period in service, changed some wording in payment

    The back side is posted and is a rough draft.

    I like the FAQ section because it targets specific situations I've had and is direct.

    thanks

    ps-both sides in 1 file
     

    Attached Files:

  7. wyldman

    wyldman Member
    Messages: 3,265

    To many different levels of service,it's too confusing.A lot of the amounts overlap,so if you decide to charge the higher amount,then the customer will complain and question why.

    Put the actual dollar amounts beside each level of service.Too much math required to figure out the cost.

    A blizzard or extreme snowfall clause is needed.

    Add something about snowfall timing.If it snows at 6 am when is the driveway going to be completed.Otherwise you will have people expecting it done a 7 am when they go to work.

    Add a place for a sketch of the property\driveway and where the snow is supposed to go.Then both you and the customer have a better idea of what needs to be done.

    Like mentioned above,something rearding damages to grass\landscaping,and what will be done about it.
     
  8. Got Snow

    Got Snow Senior Member
    Messages: 104

    the different levels of service are there for different snow storms.
    they allow me to be somewhat flexable (ie. wait for one 12" plow get charged 1 1/2 times as opposed to 12" 2 viists 2 charges)

    many drives have a different price. to avoid confusion with a million prices, i fill in the base charge. i may even hand write the amounts to the right.

    in my opinion, the extreme snowfall is all spelled out. service goes up to 24" in 24 hours. piles, banks, windrows etc moved at additional charge per their request (FAQ)

    i purposely left out and timing clause. i had one last year and i found everyone has a different time to goto work.

    damages are handled on an individual basis. i dont even like damages refered to on my contact at all.

    thanks,

    ken









     
  9. JohnnyU

    JohnnyU 2000 Club Member
    Messages: 2,040

    I also think that you need to mention something limiting your liability. If not, you leave yourself open o any damages that may occurr during the winter, whether you caused them or not....

    Also, I think the FAQ section is a good idea, however, I would include all of that in the contract portion itself, and phrase them as conditions of the contract, instead of questions and answers. Something like "the customer agrees to make every feasable effort to keep the locations free of obstructions, such as cars, trash cans, etc. Only areas that are unobstructed will be serviced." I had some help from another member in writing a clause about the slippery conditions that may still be there. They should also agree that they realize plowing may not remove snow to barepavement, they will acknoledge that these slippery conditons maybe present, and that you are not responsible for damages caused by this. personal, property, or otherwise.

    Just a few pointers from someone that doesn't really have that much experience with contracts. I want to cover all my bases the first time, meaning, a longer contract (more words and description) may save you in the case of a slip and fall, or it will tell them that you are going to pay for the garage door that you destroyed, things like that. It is supposed to protect you, and your customer, besides, it's really your only proof that you have showing what you are supposed to be doing there.

    Also- Mark the driveway yourself, only you know what to look for, and it will give you a better chance to explain how that will effect the placement of snow piles.
     
  10. wyldman

    wyldman Member
    Messages: 3,265

    I still think you'd be better off the be more definite on pricing for different snowfall amounts.According to your contract,you could charge 3 different prices for 12" of snow.If your base price is lets say $100.00,then you could charge $150.00,$200.00 or $400.00.That's a pretty wild price variation.If I was the customer,I'd be screaming if you charged me $400.00 when you could have charged me $150.00.Imagine if your bank set up your mortgage that way.Would you sign it ? No way !

    Not trying to nitpick at you,just trying to point out any possible problems which could be rectified.
     
  11. Got Snow

    Got Snow Senior Member
    Messages: 104

    all of my customer are residential. avaerage driveways run $30-$50 base charge, so this variance isn't quite as great.

    the overlaps exist to simplify the explanation of the unknown. you know as well as i that there isn't one scenario for a 12" snowfall, so why price it that way? by the way 3 different services=2 different prices (with the high of $200 in your example)
    dont you charge twice for two visits?

    as far as the mortgage......compare apples to apples. with a mortgage everything is a known value (incl adj rates)

    thanks for nit picking
    cheers,
    ken
     
  12. wyldman

    wyldman Member
    Messages: 3,265

    Yes,I would charge twice for two visits,IF charging per push.If your charging in increments,then I would charge one price for a certain amount of snowfall,regardless if we plowed it once,twice,or three times.
     
  13. CPSS

    CPSS Senior Member
    Messages: 334

    Here is one clause from my contract regarding damage and liability:

    "It is the responsibility of the contractor, (CPSS Electric) to provide initial winter storm work such as snow plowing, road salting, calcium chloride applications, clearing of entrances and exits to parking lots.
    The contractor will not be responsible for salt or plow damage to sod, trees or shrubs, nor scratches or scrapes in asphalt or concrete surfaces. The contractor cannot assume liability for any salt or calcium chloride damage to concrete, black top or wood. Management must notify contractor within 48 hours of any other damages. Failure to report damages constitutes a waiver and the contractor is released from liability."


    This was given to us during a safety audit by our insurance carrier. There are more parts to our contract if anyone wants to use them let me know.
     
  14. Snow Jaw

    Snow Jaw Senior Member
    Messages: 106

    hey, hi.. could you share me the contract so I know what is need. I just move to a city with my snow plow. so I am 't getting in to plowing right now so I am't sure yet. need to get ready do a contract and terms and agreements before I do any plowing business.
    thanks
    send me on e mail if you can.
     
  15. CPSS

    CPSS Senior Member
    Messages: 334

    I'd be happy to email it to anyone, just remember, it was reviewed by our attorney and insurance carrier in New York State , it may not be legal or enforceable in other states. In fact, in some states it may do you more harm than good....
     
  16. Joe3113

    Joe3113 Member
    Messages: 44

    CPSS
    I would love to take a look at a copy of your contract. If you can please e-mail it to me. Thanks in advance..
     
  17. Little Jay

    Little Jay Senior Member
    Messages: 101

    Well you ask for an opinion, so here's another...
    Your contract is ok for a first draft or for someone you realy trust.
    If the home owner lays out four bids on the counter along with a cup of coffee and looks at yours, a bit of work is required. Dont shy away away from being specific and overly clear. The clarity of your bid will make yours more desireable.
    Also, regarding what you put on back-the q&a is nice, but consider having a section, away from the bid prices, that cover everything that a contract should have. If you dont spell it out, they will sue. Grandma Moses, who is always in a bad mood and is never happy with her driveway will have a son who sues you cause she slipped and broke her hip after you plowed and your contract said nothing about not gauranteeing a slip free surface-or so the stories go.
    Looks OK, but you can refine it a bit.
     
  18. micah79

    micah79 Senior Member
    Messages: 303

    Snow Jaw I "am't" follwing what you want? I do suggest cleaning up your adverbs before writing a contract though.
    :cool:

    Don't take it personal, I'm just messing with you. PM me and I will try to help you out.
     
    Last edited: Oct 7, 2003
  19. CPSS

    CPSS Senior Member
    Messages: 334

    Here's our contract for anyone interested.


    CPSS Electric

    Snow Removal Agreement

    2003-2004

    SNOW REMOVAL / DE-ICING PROGRAM

    CONTRACTOR AND MANAGEMENT RESPONSIBILITY

    It is the responsibility of the contractor, (CPSS Electric) to provide initial winter storm work such as snow plowing, road salting, calcium chloride applications, clearing of entrances and exits to parking lots.
    The contractor will not be responsible for salt or plow damage to sod, trees or shrubs, nor scratches or scrapes in asphalt or concrete surfaces. The contractor cannot assume liability for any salt or calcium chloride damage to concrete, black top or wood. Management must notify contractor within 48 hours of any other damages. Failure to report damages constitutes a waiver and the contractor is released from liability.

    Management understands that if sidewalk snow removal is included in contract, sidewalk crews may not safely work if temperatures and wind conditions combined make chill factors below 0° degrees Fahrenheit. Management understands the contractor reserves the right to stop working in these severe conditions so as not to force unsafe working conditions upon its employees.

    Contractor must always be notified whenever additional snow work of any kind is required by the management after the initial clearing has been done.

    CPSS Electric will exercise its best judgment for the services needed based upon weather forecasts and existing conditions at the time. Customer is aware that weather conditions in the area may change rapidly and without notice. Changes in weather conditions are considered to be an "Act of God" and CPSS Electric assumes no liability for Acts of God.

    Contractor assumes no responsibility for vehicles parked illegally or in areas that the contractor has stated to the management to be in a location that causes a hazard or impedes performance of our work
    CPSS Electric
    Snow Removal Agreement
    2003-2004 Season
    Page 2

    It is understood that depending on the length and severity of the ice or snowstorm that that it may take the contractor varying amounts of time to fulfill all work covered under the contract.

    Contract specification pages shall become part of this agreement.

    Customer understands that plowing, shoveling or salting of a particular location may not clear the area to "bare pavement" and that slippery conditions may continue to prevail even after shoveling and plowing (or application of salt). Customers understands that CPSS Electric assumes no liability for this commonly occurring condition. Customer agrees to defend and hold harmless the contractor for any and all trespasses or suits that may arise as a result of this commonly occurring condition.

    This contract is cancelable upon written notification by either party. Monies invoiced or due for services rendered are due and payable upon such cancellation.

    EXPLANATION OF SPECIFICATION

    Snow plowing and shoveling coverage begins when approximately 3" of snow has fallen. This applies to both seasonal and per hour contracts.

    Periodic Plowing, salting or shoveling is defined as follows: These services will be done every few hours during an active storm depending on the snowstorm's severity to clean or salt those areas specified in the contract.

    Calcium chloride and salting coverage begins when snow or icing begins and will continue at periodic intervals throughout the storm. This applies to both seasonal and per hour contracts. Pre-salting coverage begins prior to start of precipitation.

    Per hour and per application prices are listed on the attached estimate. For per hour contracts, you will be charged traveling time to and from your site. There is a minimum charge of two hours per man for each person or piece of equipment with an operator used.

    Per hour/per application payment terms: You will be billed after each storm. Payment is due within 15 days from date of invoice. Snow coverage begins November 1st through March 31, each season.
    CPSS Electric
    Snow Removal Agreement
    2003-2004 Season
    Page 3

    We Propose hereby to furnish material and labor - complete and in accordance with above specifications, for the price detailed in the attached estimate.


    Per plowing, All Charges Are Subject To New York State Sales Tax.





    Date:

    Name :
    Company:

    Signed:




     ADDITIONAL EQUIPMENT AND RATE SCHEDULES ARE AVAILABLE IF NEEDED.
     Please Sign and return!
     
  20. Little Jay

    Little Jay Senior Member
    Messages: 101

    cpss
    i like.
    it's similar to ours-verbaitem in spots.
    you added some much needed sentances regarding your working conditions. thats great for insurance too