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by | Aug 12, 2024

Top 10 Commercial Snow Plowing Contracts in 2024

 

When it comes to handling the harsh winters in Massachusetts, commercial snow plowing contracts are essential for any business or property manager. These contracts not only ensure the safety and accessibility of your property but also help you steer winter challenges with ease. Let’s break it down quickly:

  • Safety: Proper snow removal prevents slip-and-fall accidents and injuries.
  • Accessibility: Clear walkways and parking lots keep your property functional during winter.
  • Winter Challenges: Reliable snow removal helps you face unpredictable snowfall and comply with local regulations.

In conclusion, investing in commercial snow plowing contracts means you are prioritizing the wellbeing of employees, customers, and anyone visiting your property.

I’m Sal Musto, owner of SalCorp Landscaping & Construction. With over 20 years of experience in the snow removal industry, I understand the critical components of commercial snow plowing contracts and how they benefit property managers.

importance of snow removal - commercial snow plowing contracts infographic pillar-3-steps

Commercial snow plowing contracts word list:

What is a Commercial Snow Plowing Contract?

A commercial snow plowing contract is a formal agreement between a snow removal service provider and a commercial property owner or manager. This contract outlines the terms and conditions for snow removal services during the winter season.

Definition

A commercial snow plowing contract specifies the scope of work, payment terms, and responsibilities of both parties. It ensures that snow and ice are efficiently managed on the property, keeping it safe and accessible.

Purpose

The main purpose of such a contract is to:

  • Ensure Safety: Prevent accidents due to slippery surfaces.
  • Maintain Accessibility: Keep walkways, driveways, and parking lots clear.
  • Reduce Liability: Protect property owners from potential lawsuits.
  • Budget Predictability: Provide a clear understanding of costs.

Clients

Typical clients for commercial snow plowing contracts include:

  • Apartment Buildings: Ensuring safety for residents.
  • Large Parking Lots: Retail stores, malls, and office complexes.
  • Restaurants and Grocery Stores: Keeping entrances and exits clear.
  • Hospitals and Clinics: Ensuring emergency access.
  • Government Buildings: Maintaining public access.

Service Providers

Service providers are usually specialized snow removal companies like SalCorp Landscaping & Construction. They have the necessary equipment, trained staff, and experience to handle large-scale snow removal tasks.

Payment Conditions

Payment terms in commercial snow plowing contracts can vary. Common structures include:

  • Seasonal Contracts: A fixed fee for the entire season.
  • Per-Push Contracts: A set rate each time snow is cleared.
  • Per-Inch Contracts: Charges based on the amount of snowfall.
  • Time and Materials Contracts: Costs based on labor and materials used.

Each payment structure has its pros and cons, which can be custom to meet the client’s needs and local weather patterns.

Specific Conditions

A commercial snow plowing contract may also include specific conditions such as:

  • Response Time: How quickly the service provider must begin snow removal after snowfall starts.
  • Scope of Services: Detailing what areas will be cleared (e.g., parking lots, walkways, entrances).
  • Materials Used: Types of de-icing agents and equipment.
  • Insurance Coverage: Documenting liability insurance to cover potential damages.
  • Breach of Contract Clauses: Penalties for non-performance or early termination.

By clearly defining these elements, both parties can ensure a smooth and effective snow removal process throughout the winter season.

Next, we’ll explore the different types of commercial snow plowing contracts and how to choose the best one for your needs.

Types of Commercial Snow Plowing Contracts

When it comes to commercial snow plowing contracts, there are several options to consider. Each type has its own pricing structure, services rendered, and benefits. Here’s a breakdown of the most common types:

Time and Material Contract

Time and Material Contracts charge based on the exact services provided each time snow removal is needed. This includes:

  • Labor: The amount of time workers spend on the job.
  • Materials: De-icing products and other materials used.
  • Equipment: The machinery involved in the snow removal process.

Benefits:

  • You only pay for what you use.
  • Flexibility to handle varying snowfalls.

Risks:

  • Financial uncertainty due to weather dependency.
  • Costs can add up quickly in severe weather conditions.

Per Inch Contract

Per Inch Contracts (or per-event contracts) charge based on the amount of snow accumulation. For example:

  • 0-3 inches: $X per inch
  • 3-5 inches: $Y per inch
  • 5+ inches: $Z per inch

Benefits:

  • Predictable costs based on snow depth.
  • Ideal for areas with consistent snowfall patterns.

Risks:

  • Can be more expensive in areas with unpredictable snowfall.
  • Requires precise measurement of snow depth.

Pay Per Push (Pay Per Event) Contract

Pay Per Push Contracts offer a fixed rate for each snow removal occurrence, regardless of snowfall amount. Each push is billed separately.

Benefits:

  • Financial stability with a fixed rate.
  • Ideal for areas with frequent but light snowfall.

Risks:

  • Multiple pushes can add up during heavy snowstorms.
  • May not account for varying snow depths.

Seasonal Contract

Seasonal Contracts involve a fixed fee for an entire snow season, typically lasting from one to three years. This fee covers all snow removal services for the duration of the contract.

Benefits:

  • Budget predictability with a fixed fee.
  • No additional costs regardless of snowfall amount.

Risks:

  • May pay more in mild winters.
  • Requires a long-term commitment.

Full-Service Seasonal Contract

Full-Service Seasonal Contracts are designed for high-risk properties that need comprehensive snow management. These contracts often include:

  • Pre-Treatment: Applying de-icing agents before snowfall.
  • Zero-Tolerance: Immediate snow removal to keep properties clear at all times.
  • Customized Storm Management: Custom plans to handle severe weather events.

Benefits:

  • Highest level of service and safety.
  • Ideal for properties with high traffic or critical operations.

Risks:

Choosing the right commercial snow plowing contract depends on your specific needs, budget, and the typical weather patterns in your area. Consider the benefits and risks of each contract type to make an informed decision.

Key Elements to Include in a Commercial Snow Plowing Contract

When drafting a commercial snow plowing contract, it’s important to include several key elements. These elements ensure clarity, protect both parties, and set clear expectations. Here’s what you need to include:

Business Information

Start with the basics. Clearly state your business name, address, and contact information. This helps in establishing who is responsible for the snow removal services.

Example:

SalCorp Landscaping & Construction
123 Snow Plow Lane, Winterville, NY 10001
(123) 456-7890
contact@salcorplandscaping.com

Property Address

Specify the exact location where the snow removal services will be performed. This eliminates any confusion about which property is covered under the contract.

Example:

Client Property Address:
ABC Shopping Mall
456 Winter Way, Frost City, NY 10002

Customer Information

Include the name, address, and contact details of the client. This ensures that both parties are clearly identified in the contract.

Example:

Client Information:
John Doe, Property Manager
ABC Shopping Mall
456 Winter Way, Frost City, NY 10002
(987) 654-3210
johndoe@abcshoppingmall.com

Terms of Agreement

Outline the start and end dates of the contract. This sets the duration for which the services will be provided.

Example:

Terms of Agreement:
Start Date: November 1, 2023
End Date: March 31, 2024

Payment Schedule

Detail how and when payments will be made. This can include upfront payments, monthly installments, or payments per push/event.

Example:

Payment Schedule:
- Initial Deposit: $1,000 due upon signing
- Monthly Payments: $500 due on the 1st of each month
- Additional Services: $100 per push for snowfalls exceeding 6 inches

Scope of Services

Clearly define what services are included. This can cover snow plowing, sanding, salting, and clearing specific areas like parking lots and walkways.

Example:

Scope of Services:
- Snow plowing of parking lots and driveways
- Salting and sanding of walkways and entrances
- Snow removal from designated areas

Terms and Conditions

Include any specific conditions that apply to the contract. This can cover response times, equipment used, and any limitations or exclusions.

Example:

Terms and Conditions:
- Response Time: Snow plowing will commence within 2 hours of snowfall exceeding 2 inches.
- Equipment: Use of truck-mounted plows and salt spreaders.
- Exclusions: Roof snow removal not included.

Breach of Contract Clauses

Specify what happens if either party fails to meet the terms of the contract. This can include penalties, termination clauses, and procedures for resolving disputes.

Example:

Breach of Contract Clauses:
- Early Termination: Client must pay 50% of the remaining contract value if terminated before the end date.
- Non-Payment: Services will be suspended if payment is not received within 10 days of the due date.
- Dispute Resolution: Any disputes will be resolved through mediation before pursuing legal action.

Including these elements in your commercial snow plowing contract will help ensure that both parties are on the same page, reducing the risk of misunderstandings and disputes. Next, we’ll discuss how to price commercial snow removal services effectively.

How to Price Commercial Snow Removal Services

Pricing commercial snow removal services can be tricky. You want to be fair but also cover your costs and make a profit. Here are some key factors to consider:

Rate Structures

Rate structures vary widely. Common ones include:

  • Per square foot
  • Per hour
  • Per inch
  • Per push

Let’s break these down.

Per Square Foot

Charging by the square foot is less common but can be useful for large areas. Calculate the total area to be cleared and set a rate per square foot. This method is straightforward but may not account for varying snow depths.

Per Hour

Billing per hour is flexible. It covers labor and equipment use. This method is good for unpredictable snowfall but can be hard to estimate in advance.

Per Inch

A per inch contract charges based on snow accumulation. For example:

  • 0-3 inches: $X
  • 3-6 inches: $Y
  • 6+ inches: $Z

This method is clear and easy for clients to understand.

Per Push (Pay Per Event)

A per push contract charges a fixed rate each time snow is removed. It’s predictable for budgeting but requires clear terms. For example, you might charge:

  • 2-4 inches: $A per push
  • 4-6 inches: $B per push
  • 6-8 inches: $C per push

This method ensures you’re paid for each visit, regardless of snowfall amount.

Labor Costs

Labor is a big part of your costs. Consider:

  • Wages for your crew
  • Overtime for long storms
  • Training and safety measures

Make sure your rates cover these expenses.

Equipment Costs

Snow removal requires specialized equipment. Think about:

  • Snow plows: Truck-mounted or skid-steer
  • Snow blowers: Single-stage or two-stage
  • Salt spreaders: For de-icing
  • Snow melters: For large volumes
  • Front-end loaders: For heavy snow

Factor in purchase, maintenance, and fuel costs.

Example Pricing

Here’s a simple example to tie it all together:

  • Per inch: $50 for 0-3 inches, $75 for 3-6 inches, $100 for 6+ inches
  • Per push: $100 per visit for up to 4 inches, $150 for 4-6 inches, $200 for 6+ inches
  • Per hour: $80 per hour, including labor and equipment

Choose a method that fits your business and client needs.

Next, we’ll look at the benefits of commercial snow plowing contracts.

Benefits of Commercial Snow Plowing Contracts

Safety

Safety is the number one priority for commercial properties during winter. Slippery walkways and parking lots can lead to accidents. A well-maintained property minimizes the risk of slip-and-fall incidents, protecting employees, customers, and visitors. According to SalCorp Landscaping & Construction, regular snow removal is crucial to prevent compacted ice and reduce accident risks.

Accessibility

Accessibility is another major benefit. Snow and ice can block entrances and exits, making it difficult for people to get in and out of the property. By ensuring clear paths, businesses can remain open and accessible, even during heavy snowfall. This is particularly important for properties with high foot traffic, like hospitals and shopping centers.

Budget Predictability

Budget predictability is a significant advantage, especially with seasonal contracts. These contracts offer a fixed price for a set period, usually covering the winter months. This helps property managers plan their budgets without worrying about fluctuating costs. As noted in our research, a fixed fee is particularly appealing to budget-conscious clients.

Professional Service

Professional service ensures that the job is done right. Experienced snow removal providers have the right equipment and knowledge to handle different weather conditions effectively. They also understand local regulations, ensuring that your property remains compliant with snow removal ordinances.

Emergency Response

Emergency response is crucial during severe weather events. A reliable snow removal service will have a contingency plan and be prepared to act quickly. For high-risk properties, like healthcare facilities, having a snow removal team on call 24/7 can be a lifesaver. They can respond before, during, and after a storm to ensure the property is safe and accessible.

Next, we’ll provide some tips for securing commercial snow plowing contracts.

Tips for Securing Commercial Snow Plowing Contracts

Securing commercial snow plowing contracts can be a game-changer for your business. Here are some practical tips to help you land those big deals:

Fill Out Big Proposals

Start small by submitting proposals to local businesses like gas stations and retail stores. Once you’re comfortable, aim for larger entities like hospitals, universities, and government buildings. These proposals are more complex and might require a consultant, but winning one can significantly boost your business.

Invest in Fleets of ATVs

ATVs can be a cost-effective alternative to traditional snowplows. They steer smaller areas better and consume less fuel. This can lower your bid costs, making your offer more appealing compared to competitors.

Ensure Preventative Maintenance of Your Snowplow Fleet

Preventative maintenance is crucial. Regular checks and timely repairs can prevent costly breakdowns. Maintain records on vehicle mileage, engine performance, and other diagnostics to keep your fleet in top shape. This not only ensures safety but also keeps your bid prices competitive.

Leverage Real-Time Vehicle Tracking

Real-time vehicle tracking can set you apart. GPS tracking helps you collect data on plowing routes, maintenance schedules, and overall efficiency. This data can be used to optimize operations and minimize costs, making your bids more attractive.

Data Collection

The more data you can show in your bid, the better. Detailed records of past performance, response times, and cost-effectiveness can build trust with potential clients. Use telematics solutions to gather this data and present it in your proposals.

By following these tips, you’ll be better positioned to secure lucrative commercial snow plowing contracts. Up next, we’ll answer some frequently asked questions about snow plowing contracts.

Frequently Asked Questions about Commercial Snow Plowing Contracts

How to Write Up a Snow Plowing Contract?

Creating a comprehensive snow plowing contract is essential for clear communication and mutual understanding. Here’s what you need to include:

Business Information: Clearly state your business name, contact details, and any necessary licenses or certifications.

Property Address: Specify the exact location where services will be provided. This ensures there’s no confusion about the areas covered.

Customer Information: Include the client’s name, contact details, and any relevant property management information.

Terms of Agreement: Detail the duration of the contract, including start and end dates. Mention any conditions under which the contract can be renewed or terminated.

Payment Schedule: Clearly outline how and when payments should be made. Specify if it’s a flat fee, per push, or per inch. Include terms for late payments.

Scope of Services: Define what services are included, such as plowing, sanding, salting, and snow removal. Be specific about the frequency and conditions that trigger these services.

Terms and Conditions: Include any additional terms like breach of contract clauses, liability, and insurance coverage. This protects both parties and sets clear expectations.

Does Snow Plowing Make Money?

Yes, snow plowing can be a profitable business, but it comes with challenges:

Profitability: The profitability of snow plowing depends on several factors, including the rate structure, volume of work, and efficiency of operations. High-demand areas with frequent snowfall can be especially lucrative.

Seasonal Business: Snow plowing is a seasonal business, which means your income is concentrated in the winter months. Planning for off-season periods is crucial.

Long Hours: Snow plowing often requires long, irregular hours, especially during heavy snowfall. Be prepared for overnight shifts and extended work periods.

Extra Cash: Many landscaping businesses add snow plowing services to generate additional income during the winter months. It’s a great way to keep your crew employed year-round.

How Do I Price a Snow Removal Commercial Near Me?

Pricing commercial snow removal services involves several key factors:

Rate Structures: Determine whether you’ll charge per square foot, per hour, per inch, or per push. Each structure has its own benefits and should be chosen based on the client’s needs and local market conditions.

Labor Costs: Calculate the cost of labor, including wages, benefits, and any additional expenses like overtime. Labor is often the largest expense in snow removal.

Equipment Costs: Factor in the cost of purchasing, maintaining, and operating your snow removal equipment. This includes snow plows, ATVs, snow blowers, and other necessary tools.

By understanding these elements, you can create competitive and fair pricing for your commercial snow plowing contracts. This ensures profitability while meeting client expectations.

Conclusion

Choosing the right contractor for your commercial snow plowing needs is crucial. At SalCorp Landscaping & Construction, we understand the importance of safety, accessibility, and proper planning when it comes to snow removal.

A reputable contractor ensures that your property remains safe and accessible throughout the winter. This helps prevent accidents and keeps your business running smoothly, even during heavy snowfall.

Planning and budgeting are key components of a successful snow removal strategy. With a well-structured contract, you can predict costs and avoid unexpected expenses. This allows you to allocate your resources more effectively and ensures that your property is always prepared for winter weather.

At SalCorp, we offer comprehensive snow management services custom to meet the unique needs of commercial properties. Our experienced team uses advanced equipment and proven techniques to deliver reliable and efficient snow removal.

Ensure the safety and accessibility of your property this winter. Contact us to learn more about our commercial snow plowing contracts and how we can help you steer the winter season with confidence.

 

Everything You Need to Know About Commercial Snow Plowing Contracts

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