Starting to provide snow removal services can turn out to be a profitable move. During winters, both residential and commercial property owners seek assistance to remove perilous snow and ice from their properties.

This is the reason why snow removal businesses are in high demand. In 2022, it is anticipated that the snow plowing services market will grow by 1.8%. However, if you are thinking of providing snow removal services, a snow removal contract is a must.

Although discussing contracts isn’t the most exciting topic, it’s necessary how to start a snow plowing business.

To begin with, when starting a snow removal business, it’s important to know how to advertise snow removal effectively to reach potential customers. A reliable snow removal contract outlines the rules on the basis of which the relationship between you and your client works. So, we’ve created this useful guide to assist you in learning everything about snow removal contracts for your business.

Table of Content

Snow Removal Contract: Meaning
What are the Different Types of Snow Removal Contracts?
Why is it Beneficial to Have a Snow Removal Contract?
Elements to Include While Drafting a Snow Removal Contract
Snow Removal Contract Templates
Difference Between Commercial Snow Removal Contract and Residential Snow Removal Contract
How Much does a Snow Removal Contract Cost Each Year?
FAQs
Conclusion

Snow Removal Contract: Meaning

A snow removal contract is a formal written agreement that is legally binding between the client and the snow removal business. It lays out the conditions of your business relationship and safeguards your business against potential disagreements, conflicts, or legal action and also help you about what and how to charge for snow removal.
In simple words, the snow plowing contract outlines

the snow removal services,
payment structures,
payment terms & conditions, as well as
any unique arrangements and exclusions that both the client and the business have agreed upon.

Whether you are entering into residential snow removal or commercial snow removal contracts, both safeguard your snow removal company and give you more financial stability while you manage your business.

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What are the Different Types of Snow Removal Contracts?

There are several snow removal contract types available. The payment-for-service conditions are set forth in these kinds of contracts. Each of them has its pros and cons. The most common types of snow removal contracts are described below:

1. Seasonal contract or fixed fee contracts

Seasonal contracts, also known as “fixed fee” contracts, will charge you a single, fixed price to cover the full snow season. These contracts often last for two to three years, and the fixed cost makes budgeting simple.

Clients that reside in regions that frequently experience heavy snowfall or that encounter a significant amount of snowfall during the whole winter season will benefit from the seasonal contract.

If winter is very mild one year, it can offset a harsher winter the next year, benefiting both you and your customer.

2. Pay per push contract Or pay per visit contract

Pay per push is a straightforward pay-as-you-go solution that bills for each visit to the site. Pay-per-push is a beneficial solution for businesses in locations that have more frequent or heavy snowfall. In such a situation, a snowplow needs to make many daily visits and earn money for each visit.

3. Per inch contract

This arrangement for removing snow is based on snowfall brackets or snow accumulation. For instance, you may have different rates for snowfall of 3 inches or less, 3 inches to 6 inches, and so on. To prevent arguments between you and your client, local weather stations establish the inches. But with this arrangement, budgeting is more difficult.

4. Per event contract

A per-event contract is comparable to a per-push contract, with the exception that you can only bill once for each snow event. One snowfall or other winter weather occurrence is referred to as an “event.” Contracts that are “per event” in nature often span a single 24-hour period.

In locations with average snowfall, this could be a worthwhile one-time charge, but it would not be as economical in areas that frequently see snowfall.

5. Time-based contract

If you’re a professional, charging for each event and pushing by the hour can be quite lucrative. Given that you will be the one to choose the contract price, managing your budget will be simple.

In the case of larger properties, charging by the hour in this kind of snow removal contract may be profitable.

6. Full service contract

An equivalent of a Seasonal+ or Premium contract is a Full-Service contract. This type of contract offers grounds maintenance and landscaping services in addition to the complete snow and ice management services of a seasonal contract for year-round coverage.

Why is it Beneficial to Have a Snow Removal Contract?

Expectations are established for your clients by a snow removal contract. The snow plowing contracts include information about the services you provide, how to make payments, and when clients can expect their requests to be fulfilled.

Additionally, contracts to remove snow help to

Avoid disagreements or conflicts over the services you delivered.
Reduce the financial risks associated with clients making late or non-payments.
Reduce your responsibility for property damage.

Elements to Include While Drafting a Snow Removal Contract

It’s crucial that the snow removal contractors visit the site and do a comprehensive walkthrough before any contracts are drawn. It is necessary in order to create a suitable work strategy. This will specify all of the work that the contractor must perform to provide the services, as well as the tools and personnel requirements.

Once you are done with the site visit and have created a strategy, you can now draft a contract, which should include the following:

Elements	Description
1. Complete address of the property	Mention the complete address of the property that you are going to service.
2. Contact details of the client	It must include their name, address, contact number, and email.
3. Contact details of your business	It must include name, address, contact number, and email.
4. Signing date	Mention the date on which the contract is signed.
5. Agreement terms	Indicate when the arrangement will start and expire.
6. Snow event	A “snow event” can be understood as the amount of snow required to start the removal job at the client’s property.
7. Property map	It should include the area that is going to be serviced under the contract, such as the parking lot, entrance of the residential or commercial properties, walkways, and driveways.
8. Scope of services	A thorough explanation of the scope of services that will be offered, such as those relating to removing snow, snow plowing, shoveling snow, and snow blowing.
9. Additional services	Include any additional services that are not part of the package but can be provided for an additional fee.
10. Service prices	Service prices should be highlighted, along with the rate and the schedule of payment. This might be the hourly rate, fixed rate, or seasonal price.
11. Payment terms	Specify the payment terms according to which you will bill your clients.
12. Payment methods	Mention the accepted means of payment.
13. Terms and conditions	Provide a section for terms and conditions and specify any extra information on your service guarantees, insurance coverage, insurance products, payment schedule, and termination policy.
14. Insurance coverage	Choose the right kind of insurance coverage. Workers’ compensation, liability, and snow removal equipment insurance are all required.
15. Blackout periods	Determine any blackout periods during which the services cannot be provided and include them in the contract. For instance, specify in the agreement that your business does not provide services on Christmas or New Year’s Day.
16. Fines or penalties	The fines or penalties you will impose for late payments should be added, if possible.

Snow Removal Contract Templates

Here are some sample snow removal contract templates that you may utilize this winter for your clients. (Note: The templates are only for information purposes, consult your legal consultant first before using them for the client.)

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Difference Between Commercial Snow Removal Contract and Residential Snow Removal Contract

Snow removal contracts for businesses and homes can provide similar services, but there are significant distinctions in how payments should be set up and the requirement of equipment.

Commercial Snow Plowing Contract	Residential Snow Plowing Contract
Apartment complexes, sizable parking lots, restaurants, and grocery shops may be covered under these contracts.	Residential snow plowing contract frequently covers a homeowner’s property.
Due to the increased vehicle traffic and the large number of individuals entering and exiting these commercial buildings, there is a greater risk associated with these contracts.	These contracts have less strain on both parties, which allows for a little more freedom.
There will undoubtedly be an increase in costs due to the need for extra trucks, loaders, and workers (to cover the large property).	Homeowner will decide if you need to see them frequently throughout the day or only a few times each week.
To ensure fair trade between you and your customer, a seasonal contract can be the ideal option for commercial contracts.	Residential employment could adapt easily to seasonal, push-based, or even event-based contracts.

How Much Does a Snow Removal Contract Cost Each Year?

Costs for a yearly snow removal contract range from $350 to $450.

It should come as no surprise that annual contracts for snow removal are more expensive when there is more snowfall. You may expect to pay more each year if you live in a region where there is a high likelihood of snowfall. Due to the increased workload each season, you may also plan to lock in a fair per-clearing fee.

Costs are greater in regions that have considerable snowfall (more than 6 inches). This is due to the possibility that removing heavy snowfall may take more effort and resources. The cost of an annual contract for snow removal service is somewhat determined by the region’s typical snowfall.

Costs are usually lower in locations with less snowfall, but you can wind up spending more overall. It could be less expensive, for instance, to employ snow plowing specialists on a case-by-case basis if it only snows sporadically where you live.

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Frequently Asked Questions

What is a reasonable fee for snow shoveling?

Shoveling snow often costs anything from $48 to $179. Snow removal and ice management services cost, on average, $113 nationwide.
How is snow removal priced per inch?

For the initial 4-6 inches of snow, you should normally charge a flat price, and for each extra inch, add more money.
How should a snow removal task be quoted?

You have the option of charging and quoting on:
- Square foot basis,
- Hourly basis,
- Per inch basis, or
- Per push basis.
You can even use automated estimating and invoicing software, like InvoiceOwl, to make the quoting process easier for you.

Conclusion

During the winter months, maintenance and snow plowing services are frequently required. In such a case, running a snow removal business can prove to be a profitable move.

But, for running a successful snow plowing business and to prevent any type of disagreement between you and the client, a snow removal contract is necessary.

So, make this winter a successful one for your snow plow business. Set the right customer expectations by creating a detailed snow removal contract by considering all the components as discussed in this blog.

Everything You Need to Know About Snow Removal Contract