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Meltdown and/or infrastructure cataclysm clause in written contracts....?

Discussion in 'Commercial Snow Removal' started by Exact Services, Sep 15, 2010.

  1. Exact Services

    Exact Services Senior Member
    Messages: 198

    Anyone here have this written up in there contracts?

    My commercial insurance policy says acts of terrorism NOT covered. So my point is if there is a massive power grid shut down due to solar flares, EMP blast, act of terrorism on a local or national scale fuel will become in critical short supply. Groceries shelves stripped bare....I think you get the picture.

    I will put this in my contracts this year but I'm looking for a sugar coated way of stating it as to not alarm or upset anybody.

  2. albhb3

    albhb3 PlowSite Veteran
    Messages: 3,523

    uhh im pretty sure no one will be worrying about if there driveway is plowed or not at that point
  3. Plowing In Hope

    Plowing In Hope Junior Member
    from Idaho
    Messages: 1

    Among the situations that could affect contract performance and wouldn't also render snow removal moot, one that comes to my mind is fuel cost and availability.
    If Israel or the US attack Iran (for whatever reason) I would expect that Iran and perhaps others would see to it that oil shipping is adversely affected.
    Imagine an oil tanker being sunk or oil shipping lanes being blocked. Fuel costs would increase dramatically overnight, if it were available at all.

    Fuel costs take only a small percentage of my gross for snow removal. Even if gas were $25/gal it wouldn't affect me that much.
    However, the total costs of that $25/gal gas would add up as most of the things that I buy would increase in price.

    You shouldn't have to get too creative in the contract wording.
    Standard exclusions include: acts of God, local ordinances and restrictions, strikes, etc.
    I don't think clients would even notice or care if you added in items like acts of governmental authority, unavailability of materials, or force majeure.
    It would just sound like more of the same legalese to them, if they even read it at all (unless your client is or uses a law firm or legal dept).
    Then you might have some 'splainin' to do.

    For those that do multi-year contracts, an allowance for mass inflation might be needed at some point. Base adjustments on the (Median) Consumer Price Index.
    I have no idea what you'd do about hyper-inflation where you'd have to change your rates by the week, day or hour e.g. Zimbabwe or Weimar Republic (1923).
    I don't think we'll see hyper-inflation in the US, but I thought I'd mention it anyway.

    We are living in interesting times (as the old curse goes).
    But, it's to be expected. People refuse to do things Jesus' way.
    He said, "Do not be deceived, God is not mocked; for whatever a man sows, that he will also reap." Galatians 6:7
    I'm surprised things have held together this long.
  4. Exact Services

    Exact Services Senior Member
    Messages: 198

    Solid input ...thanks Hope. I'll revise my contracts this week.