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7 Clauses to Include
1. Term of Agreement
The duration is commonly dependent on the winter season for most areas. Because the period varies from year to year, an agreement can usually be terminated by written notice
2. Description of Services
Also known as a “scope of work,” this section describes the services provided by the contractor and often includes:
- Snow Removal – Whether plowing, snow blowing, or shoveling snow. Its “removal” can also mean transferring the snow to another location. The specific areas should be described, such as driveways, parking lots, and walkways.
- De-Icing – This refers to applying salt or other chemicals that cause snow and ice to melt even when temperatures are below freezing.
- Other – If there are any additional services, such as removing snow from rooftops, it should be mentioned in this part of the agreement.
3. Snow Event Trigger
A snow event trigger is a predetermined condition that defines when the contractor is required to perform their services.
Example – A client agrees that in any 24-hour period, snow accumulating 2 inches or more will trigger the contractor to perform their services.
4. Compensation
A contractor can be paid in any of the following manners:
- Per Snow Event – No matter the snowfall amount, the cost for the contractor to remove snow and de-ice the property is the same.
- On an Hourly Basis – This method pays the contractor based on the time spent removing snow on the property. This may or may not also include the cost of travel.
- Recurring Payments – For corporate accounts, it is common for a contractor to be hired and receive recurring payments that remain the same no matter how many snow events occur.
Retainer – To protect the contractor’s interests, they may request a retainer to ensure the client has the funds to pay for their services. A retainer is often used for new clients with whom the contractor has never had a previous business relationship.
5. Client’s Inspection
This section allows for the client to reserve the right to inspect the property after the contractor provides their services. The main purpose of this inspection is to ensure the contractor doesn’t arrive too early during an expected snowfall.
Larger Snow Storms – It is common for a client to request the contractor return to a property after services have been carried out to finish any remaining impact from larger winter storms.
6. Release of Liability
To protect the interests of both parties, each should have a clause releasing them of liability for circumstances outside their control.
- Contractor’s Release – The contractor should not be liable for damage caused by larger winter storms or “acts of God” outside the contractor’s control.
- Client’s Release – The client should not be liable for injury to the client or their employees, subcontractors, agents, or individuals working alongside them. To further protect the client, they may require the contractor to maintain generic liability insurance.
7. Independent Contractor Status
A clause that mentions the contractor is not an employee of the client, which includes an acknowledgment that they are not liable for withholding taxes. The agreement should make it clear that the client doesn’t hold any of the responsibilities of an employer.