All About Snow Removal Contracts
A snow removal contract is an agreement between a snow removal service provider and a client to ensure reliable and effective snow and ice control for the duration of the winter season. The contract outlines the terms and conditions of the service, including responsibilities, compensation, and liability issues. For both service providers and clients, having a snow removal contract in place is essential to avoid disputes and ensure that all parties understand their rights and obligations. While there is no universal snow removal contract, many contracts contain common elements and clauses, including:
Parties: The parties to the contract, including whether the service provider is an individual or a limited liability company, are identified.
Scope of Work: The specific scope of work for the snow removal services is expressly defined.
Schedule of Performance: When snow must be removed , either as to timing, frequency, location, or pre- or post-storm, is specifically described.
Payment Schedule: How much and when the service provider will be compensated for its work is set forth.
Insurance: What type of insurance must be carried by the snow removal service provider, including general liability, automobile, truck, and equipment insurance.
Indemnification: How the parties will indemnify and hold each other harmless from claims of their respective employees, agents, subcontractors and others.
Termination: Whether and how the contract may be terminated.
Dispute Resolution: Where and how disputes are to be resolved.
Entire Agreement: How the contract supersedes prior term sheets or negotiations of the parties.
Key Components Of An Effective Snow Removal Contract
A snow removal contract should be comprehensive, covering all aspects of the relationship between the client and the service provider. These provisions may be placed in a separate document or in the body of the PSA itself, but should include all of the following:
Scope of Work
A snow removal snow removal contract should clearly articulate the scope of work. This is particularly important to address any special requests, such as plowing around mailboxes or stacking snow by a fence.
Pricing
The snow removal contract should set forth payment amounts and terms.
Payment
Similar to pricing, the contract should provide time frames for billing and payment.
Liability
Many questions can arise relating to logistical and insurance issues relating to commercial snow removal contracts. If you are unclear on your rights and liabilities in this regard it is recommended that you obtain legal advice on:
• Liability insurance requirements
• Timing of request for indemnification of damage caused by snowplowing services from contractor
• Indemnification for snow removal services
• Liability for alleged harm to the general public or any persons as a result of plowing activities
• Duty to warn of hazards before or after plowing operations
• Scope of Contractors and Licensees Liability
• Liability for negligence of third parties to whom snow clearing is contracted
References to Heavy Snowfalls
Although snow removal snow removal contracts may not specifically address what is to occur in the event of heavy snowfall, it is important to include a provision detailing how the snow removal contractor will respond. Elements for consideration include
• Definition of heavy snowfall
• Whether there will be an additional charge for heavy snowfall, and when this will apply
• What exactly will the snow removal contractor do?
• Will weather make snow removal difficult or impossible?
Workmanship Provisions
It is important to address workmanship issues to ensure that snow removal will be conducted with good governance. This section can cover a number of things, including the plowing of snow to the curb and clearing sidewalks, as well as the contractor’s ability to subcontract work.
Termination
A snow removal snow removal contract should detail the ways in which the agreement may be terminated, how long notice must be given and what options are available for short notice. For example, the snow removal contractor may want to be able to terminate the contract when there is late payment, while the client may want to terminate the snow removal services without notice. One party may want to be able to terminate the contract without any specific cause, while the other does not. By clearly outlining a termination policy in the snow removal snow removal contract, both parties will be aware of their obligations and the consequences of any breaches.
Examples of Snow Removal Contracts for Residential
Residential properties have different considerations than commercial areas, so a snow removal contract for a business will be different from one for a private residence. Your driveway, your sidewalks and other pathways on your property may not have the same specifications as an office building or shopping center.
For example, the focus on residential contracts might be shoveling sidewalks, applying de-icing chemicals to paths and driveways and clearing off cars and otherwise assisting tenants as they leave for work. A residential snow removal contractor must be equipped to clean off automobiles, vehicles and other things as needed.
"I think residential contracts are more personal; it’s a much higher level of service," said Glen Barlow, owner of Glen Barlow Industries, a snow removal and landscaping company in Wisconsin. "You have to spend a lot more time with each snow removal customer."
Barlow said that a residential snow plow truck has different parts than a truck for commercial parking lots. He has two vehicles dedicated to his residential customers and four total for commercial clients.
Here are some examples of provisions that might be included in a residential snow removal contract:
For homeowners, it’s important to make sure the snow removal contract specifies the contact person who can make changes, request updates, check whether any de-icing materials have been used and if so what they are, and ask other questions.
Homeowners should also make decisions about liability waivers, insurance, indemnification and termination.
Liability waivers can be especially important for snow removal contracts. Homeowners can have duty and liability issues that commercial property managers do not.
The issue of liability on private properties came into clear focus in January when snow fell in the city of Toronto, Canada. Because of an unusual number of snow days, Toronto had no more room for snow. At the center of the controversy was a Manitoba company called GroundsCare, which contracted with the City of Toronto to remove snow at a municipal building.
GroundsCare contracted with a concrete contractor named Walter Grzebin to remove the snow at the King Edward Hotel, a historic downtown building owned by the City of Toronto. Grzebin contracted with a businessman named Tony Cruz, who in turn hired a day laborer named Quintus Assouh. When Assouh arrived to clear off the hotel’s parking lot, he said his truck had been struck by a snowplow.
Assouh was stuck in traffic and told Cruz he couldn’t get to the parking lot. Cruz gave Assouh 30 minutes to complete the job before asking him to come to the hotel to get paid.
While Cruz was waiting, he went to the supermarket. He slipped and fell on ice in the parking lot, which had not been salted or cleared of snow.
Assouh, who had been using a shovel, ran into the supermarket and pulled Cruz outside. Cruz later died of his injuries in the hospital.
Cruz’s estate sued the City of Toronto, GroundsCare and Grzebin. The trial judge found all three responsible. GroundCare could not hide behind Grzebin because Grzebin was considered an independent contractor, not an employee or agent. No ice had been treated due to a "lack of coordination between the contractor and the sub-contractor," according to the ruling.
The Ontario Court of Appeal cleared all three entities when it overturned the lower court’s decision in September 2013. The Ontario Court of Appeal ruled that Cruz was negligent in choosing to walk on an icy parking lot, even though Cruz had been ordered to the area by GroundsCare.
An appellate court found that Cruz had been contributively negligent because he ignored several warnings not to walk in the parking lot and failed to wear studs in his shoes.
Snow removal and landscaping companies are offering to shovel driveways and sidewalks for $20 to $70 per storm plus taxes. Some companies are advertising snow shoveling plans where they clear off walkways, steps and driveways, all for a fee of $350 for the season.
Many companies use language such as "residential snow removal in your area" in their advertising to drive business to their sites. They advertise services for shoveling walks, steps and driveways with options for salting and sanding.
While most commercial contracts are for one year, residential snow contracts might be written for a season, defined as November through March. Snow contracts are typically billed monthly as work is performed.
Barlow said commercial contracts can be renewed every three years but are typically longer than one year.
Contractor obligations for snow removal can be organized by phases of removal. Here are some examples of provisions that might be included in a snow removal contract:
In addition to the services, the snow removal contract might specify the location for parking and snow storage, along with the time required for snow removal. Special conditions might apply if the snow falls fast and heavy.
Examples of potential special conditions could include:
Under normal situations, residential snow removal contracts can specify that snow or ice falling from one part of the property can be blown, shoveled or otherwise cleared onto another part of the yard. Some snow removal contractors encourage homeowners to be there if a significant amount of snow arrives.
The snow removal contract might also raise additional considerations because some municipalities have rules for ice and snow control. In Toronto, for example, the minimum fine for not removing snow or ice from sidewalks is $125.
Common Commercial Snow Removal Contract Examples
Snow removal contracts for commercial properties differ from those designed for residential purposes in some noteworthy ways. For instance, a residential snow removal contract may include a simple clause for snow "pushing," which encompasses not only moving snow away from the house itself, but also from the driveway and sidewalk. Conversely, a commercial snow removal contract covers a much larger area that can include not only the sidewalk adjacent to the business, but also the surrounding walking areas to and from the street. Creating a pedestrian zone around the business is a vital safety concern in commercial snow removal contracts.
Here are some sample clauses that would make sense in a commercial snow removal contract; these can be combined with any of the earlier residential snow removal contract language:
When Does Service Start?
Services will commence 24 hours after a snow event has stopped. The contractor may call for services to begin before this time if ice activity is taking place or if ground temperatures remain warm enough to allow for freezing or re-freezing of any melted snow already on the ground. If temperatures are nearing freezing or if it is unclear whether further snow accumulations will occur, the contractor is under no obligation to perform snow removal operations until the snow has ended or temperatures start to fall below zero.
Traveling Ice on Company Sidewalks
When snow events occur that are preceded by rain or a melting snow event, snow and ice will flow away from the building and accumulate on the sidewalks adjacent to the street. This creates a fair amount of surface runoff when the temperatures fall below zero. Consequently, there is a fair opportunity for dangerous triangular traveling ice accumulating on the sidewalks adjacent to the street. During the construction season, these areas are often marked with warning signs, but when winter arrives, there are no such warnings. Instead, the public is simply cautioned to be aware that such conditions may exist. A flier on company letterhead is taped to the front door as a reminder of this outdoor hazard. Proper signage should be clearly displayed on all sidewalks and parking lots advising those who travel onto the property that they do so at their own risk. This company believes there is little that can be done to control the unusually light and erratic patterns of sleet on sidewalks, and therefore the sign simply states that the public enter the property at their own risk for injuries incurred while walking on the property.
For commercial snow removal, contractors may also want to incorporate the concept of a "commencement of snow removal operations" clause to avoid confusion. This clause allows for better coordination of equipment in the event of a snowstorm that exceeds expectations, and provides clients with more certainty that their snow removal provider will be there when needed. It is important that such a clause is incorporated correctly and that its intent is unmistakably clear, as it represents the core of the entire snow removal contract.
Pros And Cons of Seasonal And Per-Incident Snow Removal Contracts
It’s probably easiest to think of snow removal contracts as falling into one of two major categories: those that are issued on a seasonal basis (meaning that the contractor has agreed to provide snow removal services for the entire winter) and those that are issued per incident (meaning that the contractor has agreed to remove snow on an "as needed" basis and only when called upon to do so).
Seasonal contracts generally involve the contractor receiving a set amount of income regardless of whether any snow removal services are actually requested during the term of the contract. Typically, the fee is higher for a seasonal contract than for a per-incident type, but in at least some instances it may be possible to negotiate a seasonal fee to be lower than the sum of the fees that may be owed under a per-incident contract if snow removal is requested several times between November 1 and March 31. In the right circumstances, a seasonal contract can work to the benefit of both the contractor and the customer. The customer benefits by being able to eliminate from its budget any fear that its snow removal service will be overpriced , and the contractor benefits by being virtually assured of receiving a set income as long as it can avoid the necessity of providing snow removal services. An example of this is a service that agrees to provide snow removal for a university on its campus, but effectively shuts down for that customer completely on weekends through much of December, January and February — coincidentally, after the university lets out for Winter Break and before students return for classes in January. During those weekends, the snow removal company can significantly reduce costs by not having to pay for crews and equipment to be on standby in case snow falls.
On the other hand, for anyone who lives in an area in which snow removal is needed for three to five months a year, a per-incident contract can arguably be the better deal. Whether or not it is might depend in large part on how often snow is actually removed. If one needs snow removal services only a couple of times a year, or if a snow removal contractor is still using shovels when and wherever possible, then a per-incident contract may represent a better bargain all around, provided the per-incident prices are reasonable to begin with.
How To Customize Your Snow Removal Contracts
Not every situation is going to be the same. Looking first at residential needs, if you want snow removed from your property you should specify how many feet into the street you want it removed. If you are pushing it as far as possible into the street, it may not be on your property to the extent you want it. You should also be aware of the fact that if you live in a snow belt, and you have a lot of people in your area who push their snow into the street, the municipal plow may simply push the snow back into your driveway. Not only do you need to have a contract with your snow removal provider, but should make sure that you have a provision for snow removal from the street into your driveway or else you may be cleaning your own driveway on a regular basis.
If you are talking about a commercial area, you don’t have to worry about the same sort of question as you would for a residential area. If you have a big enough area it does become cost prohibitive to have the snow removed to the street. But, if you have an open area (such as a big parking lot) there should not be an issue about whether or not there is enough space to push the snow into the street. If you are talking about a lot where it is going to be a problem to put the pushed snow into the street then push it onto an adjacent lot as opposed to the street and then remove it off the property at your convenience.
Things to Avoid When Drafting Snow Removal Contracts
One of the biggest problems with snow removal contracts is that many snow removal contractors do not pay close enough attention to the terms and conditions set forth in their contracts. They let the customer do the bargaining. This can lead to the following common pitfalls:
Too Much or Too Little Performed Some contracts require all of the snow on a site to be removed, and some require only the plowing of certain areas. Make sure to specifically identify which areas are to be removed. Also, some contracts simply say snow must be cleared from surface areas. That type of general language should be specific as to where the snow is to be cleared so there is no assumption by the customer or employee how much snow must actually be cleared. Most snow removal contracts do not have specific terms as to what constitutes "snow fall." There is no standard of what snow fall is required for removal. It is important to have some minimum measurable amount of snow fall so the storm will not "result in a contractual argument over whether snow fall constituted grounds or circumstances requiring snow removal." Make sure to have a number of inches of snow fall specified , like 3-4 or 4-5 inches for a snow event requiring snow removal.
Starting And Stopping Services When and where snow removal will begin and end is important and the contractor should have these parameters spelled out in the contract. Most snow removal contracts simply require snow will be removed, and the expense incurred will follow the snow fall, but the contract should address when snow removal will start, if it will occur until the snow stops, how late in the day the snow removal will continue, and if there is an additional charge for snow removal during non-standard business hours.
Type And Quality Of Service Most snow removal contracts are simply for snow removal. The contractor removes the snow, and the service is done. However, issues arise as to whether there is shoveling, salting, de-icing, or scraping involved. Most snow removal contracts do not expressly require that the contractor keep a log as to when services were performed and what services were performed, and what weather conditions were present at the beginning and at the end of the snow removal.