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Writing Salt increases in your contracts?

Discussion in 'Ice Management' started by Snow Picasso, Jul 30, 2008.

  1. Snow Picasso

    Snow Picasso Senior Member
    Messages: 249

    Hello Boys,

    I'm know I have to have a stipulation in my contracts this year about the the change in salt costs as the year progresses, but I'm not quite sure how I should write it. Do any of you have it in your contracts about a salt increase as the price increases? Do you show the customer proof? Any input would be helpful!

    Thanks!
     
  2. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    haha...umm no


    here is Y -- just like fuel, go head a charge a salt surchage, and soon ur customers will become angry and not like you

    2. if they you showed them the fact that it costs you ... $50 per ton? and ur charging $180 applied or so --- they might be like - ur ripping us off? and refuse to pay ur increase....

    i would just up ur rate expecting it to go up , and buy enought salt to cover you for 3/4 of ur season, now before winter, at a good price
     
    Last edited: Jul 30, 2008
  3. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    they onely way i could thing to write it.. and make u look half good is to say that


    : the contcotr estimates that you will use __20__ tons this season, based on the average amount of snow falls in ur area. After __25__ tons are to be applied the contractor may increase his alting price to allow for matierial increases...


    either way - i think that ur customers would think ur un prepared and would be pissed off
     
  4. Ipushsnow

    Ipushsnow Senior Member
    Messages: 314

    This is how I did it:
    "Availability of Road Salt: In the event that supplies of bulk salt are exhausted in the Milwaukee Metropolitan area the contractor may utilize bagged salt on all surfaces, which will result in the customer paying the bagged salt rate. In the event that all bulk and bagged salt supplies available to the contractor in the Milwaukee Metropolitan area are exhausted, the contractor shall not be held liable, nor found in breach of contract provided the contractor exhausts all reasonable means necessary to obtain and provide de-icing products to the customer. "
     
  5. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,853

    Might I suggest the spell check button at the bottom of the reply screen? It's next to impossible to figure out what you are saying.

    As for buying enough or even for 3/4, care to elaborate? I went through approximately twice as much last year as normal. So should I buy 3/4 of normal or 3/4 of what I used last year? And then where do I store it? And pay for it all up front?

    This is like suggesting that you buy 3/4 of your fuel right now before the price goes up this winter. Not very realistic.
     
  6. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    srry , i was a little tired when i wrote that

    if you go thru 100 tons on ur average winter, then if possible, i would by at least 75 tons to start, just for an example,... true last year was larger than most, now i understand that u cant always buy the whole season up front do to cost, but its more about the abblity to secure ur suppy than the cost... look at it like this, lets say you got a decent price on taking shippments in september, and to payfor it , you had to put some, not all , but some on a low interest cc... or loan ( i would rather just buy it cash) but , at least u have what u need, and when every one elses prices go up, u got it at a lower amount, so the interst might balance the increase? then again it might not

    heres what i know.... i paid like 50per ton at the begining of the season, and towards the end while i could still get bulk salk i paid $130, at one point we were all bagged and it costs over 200 per ton
    the fact that i couldnt get any or ran out , was not a good enough excuse to the customers i deal with, they are compairing to what the city streets look like, if the city applys salt, so do i in most cases. this is y the city is stocking up now, to secure there product

    i did like the way that you worded the above statment, reguarding the bagged product, i might steel that from you =) just in case , but i would have ahard time wording an "increase" for bulk material, and how to prove it
     
  7. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    i know, storage is an issue, and not every person on this site has the abblity to do it.... however if you r gonna play with the big boys, and do high end work , this is a pretty good way to help you out

    id buy gas ahead of time if i had a 3000gal tank to store it
     
  8. Snow Picasso

    Snow Picasso Senior Member
    Messages: 249

    I like were your going with this! But, if I were a customer... I think (ALL REASONABLE MEANS) would actually mean... I don't care what it costs you to get your salt! We have a contract and that contract says you are to salt my lot! If someone gets hurt because you didn't salt my lot because the prices were to high...I'll see you in court!

    We will always be able to get salt. It's just going to cost a pretty penny! Maybe at the end of your statement we could say...

    In the event that all "reasonable means" results into an unexpected price increase for salt products. The customer will be notified in writing and have the opportunity to accept or deny salting of their properties due to "new" price increase of materials.

    What do you think?
     
  9. T-MAN

    T-MAN PlowSite.com Addict
    Messages: 1,363


    Not to bust your balls but I really wouldnt trust a bunch of guys on the internets thoughts LOL. This is what attorneys get $250+ an hour for. Get your basic draft done and turn it over to an attorney who handles this stuff. Guessing what will hold up in court is not a good idea IMO. Especially living in a state that is out of control with trial lawyers. Look at the Doctors and there mass Exodus to Wi, there getting there asses sued off, and I would bet they had good contracts...
     
    Last edited: Aug 1, 2008
  10. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

     
    Last edited: Aug 1, 2008
  11. Snow Picasso

    Snow Picasso Senior Member
    Messages: 249

    I hear you! We are definitely the ones who are made out to look like the bad guys. It's also funny how everyone expects the buck to stop with us! I've thought about everything you guys have said that's why I decided to reach out and see what you guys thought and how you were going to approach this situation. Thanks for your input!