A friend of mine that owns an excavating outfit (two excavators, tandem and trailer and attachments) are looking at getting some snow removal contracts for the upcoming winter season (hate thinking about it now when its been pretty nice out) partly so I can finance a skid-steer and to keep some work and money coming in during the slow season I'm thinking of getting a sweeper bucket for cleaning up the parking lots in the spring as an additional service as the thaw can take quite a while here before any real dirt work starts up. How do you guys go about setting up your contracts? I know some parking lots will require hauling as soon as they are cleared so I of course want that to be cost plus, but I also would like it so that if in one particular month there is a lot of snow I don't want removing it to come out of my pocket if that makes any sense?
Most snow removal contracts are by the month whether it snows everyday or not at all. Depending where you're located you could base the monthly rate on say 3 clearings a month. If you have to clear 4 times, you eat the cost but the next month you only had to do it twice. Contracts are usually for at least 4 month's and usually average out pretty good. If the snow has to be hauled every time include it in the contract. If it only has to hauled because there's no room left to pile it, it could be an extra cost by the hour or a set rate but it can be hard to estimate how loads are in a big pile. A lot of customers want the snow cleared ASAP after a snowfall and usually at night. If you take on too many contracts and don't have enough equipment, you'll have some unhappy customers.
Dave, around here those contracts are long gone, just like the dinosaurs. Price is line by line item, salt, plow less than 4", plow more than 4"....... We always had our contracts finalized by now. Ed
Most of the sore front and large parking area customers here have set their contracts as of the end of last winter. Generally it is on a as use basis where has to snow at least 2-3 inches before will pay any fees, light snows they will generally have laborers and shovels for the walks a few light machines for clearing where the heavier stuff they bring on the skid steers/trucks and salt spreaders. Just heard a ominous Old Wives' tale or weather lore as to August; For every August day with fog is the number of snows for winter, so far we are batting 1000 with 8 for 8 days fogged out.
Every one I know around here that contracts snow removal have contracts that are by the hour, price based on machine used, and what they are doing. Many like the hospitals have stipulations as to when they plow and when it has to be done by. They may plow 3 or more times a day during a decent snow event. Other clints get a better rate if it is pick up work after the important ones are done.
Usually has to snow a minimum amount and the other thing is if you have to do sidewalks as well which can be a pain if you're an owner operator and it needs to be done with a snowblower or smaller machine. Many snow removal outfits also do lawn maintenance in the summer so they have a year round contract. I had a contract at a condo that wanted a fixed price per month so they knew exactly what they would be paying out. I've also done jobs by the hour which some customers like because they only pay for actual work done. Some customers complain no matter what you do. I did a job for company and spent extra time (30-40 minutes) to dig up all the packed ice and snow where everybody had to walk. Took them a bill the next day and the manager was a total jerk. You spent 3 1/2 hours clearing the snow and we could have got the landscape supply to do it in 2 hours with a big loader. It was done at night and a big loader couldn't have done what I did on the walk way. The big loader is also about twice the hourly rate of my skid steer so I actually did a better job for a little less money. This was for a well known company that makes V belts. Without digging up the packed ice and snow would have been even less cost. The big loader would have taken a little longer too with the ice. I wouldn't work for that guy if his life depended on it. Some customers you don't forget.
Worked side job as mechanic from home, did a guy a favor as we at the real job garage could not work him in as no one could so I took the work home. Four days overhauling the 6513 in his Ford truck, new clutch and cut him some slack for the extra work I had to do to get the trans out then back in under a tilt deck flatbed with extra tool boxes each side. He whined all the time making out the check which happened to not clear until the third try(cost me fees every time I could never get him to cough up for). He wanted more work done and I could never find the extra time to 'work him in' ever again. Figured this is why the other garages turned him away so often. Truck was still running with same trans and clutch seven years later but for another guy.
I was lucky to get out of the snow removal business when the salt craze started. Just plow and leave...... No choice really, liability insurance was/is a killer. Fun while it lasted, don't miss it. Ed