by | Sep 23, 2024

Commercial Snow Plow Contract: Top 5 Expert Tips for 2024

 

If you’re looking for information about a commercial snow plow contract, you’ve come to the right place. These contracts are essential for businesses to maintain safe and accessible environments during the winter months.

Here’s a quick overview of what you need to know about commercial snow plow contracts:
Types of Contracts: Seasonal, per-push, per-event
Key Elements: Work standards, insurance coverage, payment terms
Importance: Safety, accessibility, legal compliance

Winter brings its own set of challenges, especially for businesses that need to ensure the safety and accessibility of their premises. Snow and ice can hinder operations, lead to accidents, and even incur legal liabilities if not managed properly. That’s why having a solid commercial snow plow contract is crucial. It outlines the specifics of snow removal services, from the type of equipment used to the frequency of snow removal, and sets clear expectations for both parties.

I’m Joe Gerrior, owner of Gerrior Masonry & Landscaping with over 34 years of experience serving residential and commercial clients. As an expert in crafting and managing commercial snow plow contracts, I understand the importance of detailed planning to tackle winter’s challenges effectively.

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Commercial snow plow contract terms to learn:
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Types of Commercial Snow Plow Contracts

When it comes to a commercial snow plow contract, there are several types to choose from. Each has its own payment structure and benefits, making it important to pick the one that best suits your needs. Here’s a breakdown of the most common types:

Pay Per-Push Contracts

A Pay Per-Push Contract charges a fixed rate each time snow removal services are performed. This type of contract offers:
Stability: You know exactly how much you’ll pay each time it snows.
Limits: Your cost can add up quickly during a heavy snow season.

For example, if a snowstorm requires multiple visits to keep your property clear, each visit incurs a charge. This can provide financial predictability but can be costly in a snow-heavy winter.

Seasonal Contracts

A Seasonal Contract sets a fixed price for the entire snow season, regardless of how many times it snows. This type of contract usually spans multiple years and offers:
Budget-Friendly: Predictable costs help with budgeting.
Average Snowfall: Both parties benefit over time based on average snowfall.

This is ideal for businesses that want to avoid surprise costs. For example, large commercial properties like shopping malls often prefer this type of contract to ensure their lots are always clear.

Time and Material Contracts

A Time and Material Contract charges based on the actual time and materials used for each job. This type of contract includes:
Service Fee: Charged per job.
Materials and Labor: Costs for deicing products and labor time.
Risk: Financial uncertainty due to weather dependency.

This contract type is best for areas with unpredictable snowfall. If there’s little snow, you pay less, but a heavy winter can result in higher costs.

Per Inch Contracts

A Per Inch Contract charges based on the amount of snow accumulation. This type of contract offers:
Tiered Pricing: Different rates for different snowfall volumes (e.g., 1-3 inches, 3-5 inches).
Flexibility: You pay based on the actual amount of snow.

This is a good option for businesses that want to balance cost with the actual amount of work required. For instance, a small business might find this type of contract more economical in a region with variable snow levels.

Snow Removal Contract Types - commercial snow plow contract

Each type of commercial snow plow contract has its own advantages and drawbacks. The key is to choose the one that aligns best with your business needs and budget. Understanding these options will help you make an informed decision to keep your property safe and accessible throughout the winter.

Next, let’s dive into the key elements that every commercial snow plow contract should include.

Key Elements of a Commercial Snow Plow Contract

When drafting a commercial snow plow contract, it’s crucial to include specific elements to ensure clarity and protect all parties involved. Here’s what you need to know:

Work Performance and Standards

A well-defined scope of work is the backbone of any contract. It should detail the services you will provide, such as:

  • Sanding and Salting: Specify the areas to be treated and the frequency.
  • Snow Removal: Describe the methods (plowing, shoveling, snow blowing) and the exact locations (driveways, parking lots, walkways).
  • Equipment and Crew Size: Outline the types of equipment used and the number of crew members assigned to the job.

For example, a contract might state that snow will be removed from parking lots within 2 hours of snowfall exceeding 2 inches, using a fleet of ATVs and plow trucks.

Insurance Coverage

Insurance is non-negotiable due to the high risk of accidents and property damage. Your contract should include:

  • General Liability Insurance: Covers potential damages to the client’s property. For instance, if a mailbox is damaged during snow removal, this insurance helps cover the repair costs.
  • Property Damage Coverage: Ensures any damage caused by your equipment or crew is covered.
  • Workers’ Compensation: Protects against claims from employees injured on the job.

Documenting your insurance coverage in the contract builds trust and demonstrates professionalism.

Payment Structure

Clearly outline how and when payments will be made. This includes:

  • Billing Schedule: Indicate whether you bill monthly, per push, or per season.
  • Payment Terms: Specify due dates and acceptable payment methods (e.g., credit card, bank transfer).
  • Delayed Payments: Include terms for late payments, such as penalties or interest charges.

For instance, a seasonal contract might require an upfront payment with subsequent payments due at the beginning of each month.

By including these key elements, you can create a comprehensive and clear commercial snow plow contract that meets both your needs and those of your clients. This ensures a smooth working relationship and helps avoid misunderstandings during the hectic winter months.

How to Secure a Commercial Snow Plow Contract

Filling Out Big Proposals

Securing major commercial snow plow contracts can be a game-changer for your business. To win these contracts, you need to submit detailed and compelling proposals. Start by targeting large entities like hospitals, universities, stadiums, and government buildings.

Key Tips:

  • Detail-Oriented: Include every aspect of your service, from the specific areas that will be cleared to the types of equipment used.
  • Professionalism: Consider hiring a consultant to help refine your proposal for high-stakes contracts.
  • References: Provide client references and showcase positive testimonials to build credibility.

Detailed proposals are essential for securing major contracts. - commercial snow plow contract infographic 4_facts_emoji_light-gradient

Investing in Fleets of ATVs

ATVs can be a cost-effective alternative to traditional snowplows. They are cheaper, more fuel-efficient, and can steer smaller areas better than large trucks.

Advantages:

  • Cost Analysis: ATVs consume less fuel, which helps lower operational costs.
  • Maneuverability: They can easily access tight spaces, making them ideal for complex urban environments.
  • Competitive Edge: Lower costs can make your bids more attractive to potential clients.

Preventative Maintenance of Snowplow Fleet

Regular maintenance is crucial to keep your fleet running smoothly and cost-effectively. Preventative maintenance can help prevent costly repairs and downtime.

Steps to Take:

  • Maintenance Records: Keep detailed logs of vehicle mileage, engine performance, and key systems diagnostics.
  • Regular Checks: Conduct routine inspections to identify and address issues early.
  • Cost Reduction: Well-maintained vehicles are less likely to break down, reducing overall repair costs and keeping your bids competitive.

Leveraging Real-Time Vehicle Tracking

Implementing real-time vehicle tracking can significantly improve your operational efficiency. GPS tracking systems provide valuable data that can help optimize your snow removal services.

Benefits:

  • Route Optimization: Use GPS data to find the most efficient routes, saving time and fuel.
  • Safety Measures: Track vehicle locations to ensure the safety of your crew.
  • Maintenance Schedules: Monitor vehicle performance in real-time to schedule timely maintenance.

By integrating these strategies, you can position your business to secure lucrative commercial snow plow contracts effectively. This approach not only improves your service quality but also makes your bids more competitive.

Frequently Asked Questions about Commercial Snow Plow Contracts

How to Write Up a Snow Plowing Contract?

Drafting a commercial snow plow contract involves several key components to ensure clarity and protection for both parties.

Business Information: Start with your company’s name, address, and contact details. This establishes who is providing the service.

Property Address: Include the specific address of the property where the snow removal services will be performed.

Customer Information: Document the client’s name, address, and contact information for clear communication.

Terms of Agreement: Clearly outline the start and end dates of the contract. Specify the conditions under which the contract can be terminated by either party.

Payment Schedule: Define how and when payments will be made. This could be per-push, per-event, or on a seasonal basis. Be sure to include terms for delayed payments.

Scope of Services: Detail the specific services to be provided, such as plowing, sanding, salting, and snow removal. Mention the equipment to be used and the crew size.

Terms and Conditions: Include clauses covering breach of contract, liability, and any additional fees for services not included in the standard agreement.

Does Snow Plowing Make Money?

Yes, snow plowing can be quite profitable, especially in areas with heavy snowfall.

Profitability: Snow plowing is a seasonal business, but it can bring in significant income during the winter months. Contracts with commercial clients often provide steady revenue.

Seasonal Business: The demand for snow removal services peaks during the winter, allowing businesses to charge premium rates.

Long Hours: Be prepared for long hours, especially during heavy snowfalls. The more it snows, the more you work, and the more you earn.

Extra Cash: Many landscaping businesses add snow removal to their services to make extra money during the off-season.

How Much Does a Commercial Snow Plow Weigh?

The weight of a commercial snow plow can vary depending on the size and type of equipment used.

Plow Size: Standard commercial snow plows can range from 300 to 1,000 pounds.

Weight: A typical truck-mounted plow weighs around 500 to 800 pounds. Larger plows used for heavy-duty commercial work can weigh even more.

Truck Equipment: It’s essential to ensure that your truck can handle the added weight of the plow. This may require reinforced suspensions and other modifications to maintain vehicle performance and safety.

By understanding these aspects, you can better prepare and manage your commercial snow plow contracts, ensuring a successful and profitable snow removal season.

Conclusion

Navigating commercial snow plow contracts can be complex, but understanding the different types of contracts, key elements, and how to secure them can make the process much smoother.

At Gerrior Masonry & Landscaping, we specialize in providing high-quality commercial snow removal services. With over 30 years of experience, we ensure that every project is handled with professionalism and care. Our skilled team and owner oversight guarantee top-notch results, making us a trusted partner for your snow management needs.

If you need reliable and efficient snow removal services, don’t hesitate to request an estimate online. We are ready to help you maintain the safety and accessibility of your property throughout the winter season.

By choosing Gerrior Masonry & Landscaping, you’re not just getting a service provider — you’re gaining a partner dedicated to ensuring the safety and smooth operation of your property. Let’s make this winter hassle-free together.