by Gerrior Masonry | Aug 3, 2024

The #1 Guide to Navigating Commercial Snow Plowing Contracts in 2024

The Importance of Commercial Plowing Contracts

Commercial plowing contracts are essential for businesses dealing with substantial winter snowfall. These contracts ensure safety, maintain accessibility, and provide reliability during harsh winter conditions. Whether you’re managing an apartment complex, a grocery store, or a large parking lot, keeping snow and ice at bay is crucial for operations.

Here’s a quick rundown of why you need a commercial snow plowing contract:

Safety: Prevent accidents by keeping paths and parking lots clear.
Accessibility: Ensure employees, customers, and emergency services can access your property.
Reliability: Timely snow removal is guaranteed with a professional contract.
Budgeting: Fixed seasonal contracts help manage costs effectively.

I’m Joe Gerrior, the owner of Gerrior Masonry & Landscaping. With over 34 years in the business, I understand the critical role that commercial snow plowing contracts play in safeguarding and maintaining commercial properties during winter. Let’s dive deeper into what you need to know.

Understanding Commercial Snow Plowing Contracts

Types of Snow Removal Contracts

When it comes to commercial snow plowing contracts, understanding the different types can help you choose the best fit for your property needs. Here are the most common types:

Time and Material Contracts: Charges are based on the labor, time, and materials used for each job. This can be unpredictable since costs vary with each snowfall.
Per Inch Contracts: You pay based on the amount of snow. For example, one rate might apply for 3 inches of snow and another for 6 inches.
Pay Per Push Contracts: You pay a fixed rate each time snow is removed from your property, regardless of how much snow falls. This offers more financial stability.
Seasonal Contracts: A fixed fee covers the entire snow season. This is great for budgeting, as you know your costs upfront.
Full-Service Seasonal Contracts: These include all snow removal services for a fixed fee over the season. It often covers additional services like deicing and multiple visits during heavy snowfall.

Key Elements of a Snow Removal Contract

A well-structured commercial snow plowing contract should include several key elements to ensure clarity and mutual understanding. Here’s what to look for:

Business Information: The contract should start with details about your business and the snow removal service provider.
Property Address: Clearly state the address of the property where the services will be performed.
Customer Information: Include the name and contact details of the person responsible for overseeing the contract.
Terms of Agreement: Define the duration of the contract, including start and end dates.
Payment Schedule: Specify how and when payments will be made. This could be monthly, per event, or seasonally.
Scope of Services: Detail the services provided, such as plowing, sanding, salting, and deicing. Mention the equipment used and the size of the crew.
Terms and Conditions: Outline the general conditions, including response times, liability clauses, and procedures for handling disputes.

A comprehensive contract not only protects both parties but also ensures that expectations are clear and met consistently throughout the winter season.

Pricing Strategies for Commercial Snow Removal

Factors Influencing Pricing

When it comes to commercial snow removal, several factors can influence the pricing. Understanding these can help you choose the right contract for your needs.

Rate Structures:

Commercial snow removal services use different rate structures. Here are some common ones:

Per Square Foot: Charges based on the area that needs to be cleared.
Per Hour: Charges based on the time it takes to clear the snow.
Per Inch: Charges based on the depth of the snow.
Per Push: Charges each time the snow is removed from the property.
Seasonal Pricing: A fixed price for the entire snow season, regardless of the number of snow events.

Each structure has its pros and cons, and the best choice depends on your specific needs and budget.

Labor Costs:

Labor is a significant part of the cost. It includes wages for the crew, overtime pay for long snow events, and possibly additional costs for emergency services.

Equipment Costs:

The type and amount of equipment used also affect the price. For example:

ATVs are cheaper and more maneuverable in tight spaces.
Trucks and Loaders are necessary for larger areas but come at a higher cost.

Material Costs:

Materials like salt and sand are essential for safe snow removal. The cost of these materials can vary based on market prices and the amount needed for each job.

Weather Conditions:

Unpredictable weather can make pricing tricky. A heavy snow season can increase costs, while a mild winter might reduce them. Seasonal contracts can help manage this uncertainty by offering a fixed price.

Insurance Coverage:

Snow removal companies need comprehensive insurance to cover potential liabilities, such as property damage or worker injuries. This insurance can add to the overall cost but is essential for protecting both the company and the client.

By understanding these factors, you can better steer the complexities of a commercial plowing contract and choose a pricing strategy that fits your needs.

Benefits of Different Contract Types

Pay Per Push Contracts

Definition: A pay per push contract charges a fixed rate each time snow is removed from your property. This rate does not change based on the amount of snowfall, time, or labor involved.

Advantages:
– Predictable Costs: You know exactly how much each snow removal will cost.
– Flexibility: Pay only when services are needed, which can be beneficial during mild winters.
– Detailed Invoicing: Each push is itemized, making it easy to track expenses.

Disadvantages:
– Unpredictable Budget: Costs can add up quickly in heavy snowfall years.
– Potential for Higher Costs: Frequent snowfalls can lead to higher overall costs compared to other contract types.

Ideal Clients: Retail property managers and businesses that prefer itemized billing and have a flexible budget to handle variable costs.

Seasonal Contracts

Definition: A seasonal contract involves a single fee for an entire snow season, typically lasting from one to three years. This fee covers all snow removal services regardless of the number of snow events.

Advantages:
– Budget Stability: Fixed costs make it easier to plan and manage your budget.
– Comprehensive Service: All snow removal needs are covered for the entire season.
– No Hidden Costs: No additional charges for extra snow events or heavier snowfall.

Disadvantages:
– Risk of Overpayment: If the winter is mild, you may end up paying more than you would with a pay per push contract.
– Long-Term Commitment: Often requires a multi-year agreement, which may not be ideal for all clients.

Ideal Clients: Homeowners’ associations and businesses that prefer predictable expenses and want comprehensive coverage without worrying about additional costs.

Full-Service Seasonal Contracts

Definition: A full-service seasonal contract offers all-inclusive snow removal services for a fixed fee over a season. This includes not just snow plowing but also sanding, salting, and deicing.

Advantages:
– All-Inclusive Service: Covers every aspect of snow management, ensuring safety and accessibility.
– Simplified Management: One contract covers all services, reducing administrative hassle.
– Improved Safety: Continuous monitoring and maintenance ensure that the property remains safe throughout the season.

Disadvantages:
– Higher Initial Cost: The all-inclusive nature of the contract can make it more expensive upfront.
– Potential for Overpayment: Similar to seasonal contracts, you may pay more in mild winters.

Ideal Clients: Large commercial properties, hospitals, and universities that require comprehensive snow management to ensure safety and accessibility at all times.

By understanding the benefits and drawbacks of each contract type, you can choose the one that best fits your needs and budget. Next, let’s look at some tips for securing commercial snow removal contracts.

Tips for Securing Commercial Snow Removal Contracts

Filling Out Big Proposals

To win major commercial snow removal contracts, you need to go big. Start by submitting proposals to smaller businesses like gas stations or retail stores to gain experience. Once you’re ready, target larger clients such as hospitals, universities, and government buildings.

Pro Tip: Consider hiring a consultant to help with these bigger proposals. They can provide insights and improve your chances of landing a contract.

Key elements to include in your proposals:

Detailed scope of services
Equipment and staff details
Response times for snow removal
Clear payment terms and conditions

Investing in Fleets of ATVs

Investing in all-terrain vehicles (ATVs) can give you a competitive edge. ATVs are more cost-effective than traditional snowplows and can steer tight spaces.

Benefits of ATVs:

Cost-Effectiveness: Lower operational costs compared to large trucks.
Fuel Efficiency: Consumes less fuel, reducing overall costs.
Maneuverability: Ideal for smaller areas that large trucks can’t access.

Ensuring Preventative Maintenance

Maintaining your snowplow fleet is crucial for cost management and operational efficiency. Preventative maintenance can help you avoid costly repairs and keep your equipment in top shape.

Steps for Effective Maintenance:

Keep Fleet Data: Track mileage, engine performance, and key systems.
Schedule Regular Checks: Routine inspections can catch issues early.
Cost Management: Well-maintained vehicles reduce unexpected expenses.

Leveraging Real-Time Vehicle Tracking

Real-time vehicle tracking can set you apart from the competition. GPS tracking helps you optimize routes, improve safety, and minimize costs.

Advantages of GPS Tracking:

Route Optimization: Efficient routes save time and fuel.
Safety Measures: Monitor vehicle locations to ensure driver safety.
Cost Minimization: Data-driven decisions help reduce operational costs.

By focusing on these strategies, you can improve your chances of securing lucrative commercial snow removal contracts. Next, let’s answer some frequently asked questions about commercial plowing contracts.

Frequently Asked Questions about Commercial Plowing Contracts

Frequently Asked Questions About Commercial Plowing Contracts

What services are typically included in a commercial plowing contract? A standard commercial plowing contract usually includes snow removal from parking lots, driveways, and walkways, as well as salting and de-icing services. Some contracts may also offer additional services such as snow hauling, clearing of loading docks, and emergency response to heavy snowfalls. It’s essential to review the contract details to ensure all necessary services are covered.
How are plowing contracts priced and what factors affect the cost? Plowing contracts are generally priced based on the size of the property, the frequency of service, and the expected snowfall amount. Factors such as the complexity of the property layout, the presence of obstacles, and the need for additional services like salting or hauling can also influence the cost. Contracts may be billed per event or as a flat rate for the season.
What should I do if I experience a problem with the plowing service? If you encounter issues with your plowing service, such as missed areas or inadequate snow removal, contact your service provider immediately. Most contracts include a provision for addressing service issues or discrepancies. Document any problems and communicate them clearly to ensure prompt resolution. Regularly reviewing and discussing performance with your provider can help maintain the quality of service throughout the season.

Conclusion

Choosing the right commercial plowing contract is crucial for maintaining safety and accessibility on your property during the winter months. At Gerrior Masonry & Landscaping, we understand the unique needs of commercial properties and offer custom solutions to ensure your premises remain clear and safe.

Summary:
– Commercial Snow Removal: Essential for safety and accessibility.
– Types of Contracts: Seasonal, pay per push, and full-service contracts each offer unique benefits.
– Key Elements: Clear terms, scope of services, and solid insurance coverage are essential.
– Pricing Strategies: Understanding labor, equipment, and material costs helps in setting fair prices.

Importance of Choosing the Right Contract:
The right contract not only ensures efficient snow removal but also offers budget stability and risk management. Whether you opt for a seasonal contract for consistent budgeting or a pay-per-push contract for flexibility, the key is to choose a plan that aligns with your specific needs.

Contact Information:
At Gerrior Masonry & Landscaping, we are dedicated to providing top-notch snow removal services. Our experienced team is ready to help you steer the complexities of commercial snow plowing contracts.

For more information on our services, visit our Commercial Snow Removal page.

Feel free to reach out to us at any time to discuss how we can help keep your property safe and accessible all winter long.