You may need to get a new waste hauler contract if you have found a new vendor with significantly better rates and are willing to pay the old vendor’s contract termination fee. Or, maybe your current vendor has breached their current contract due to repeated service issues. Or, your old contract may have expired and you want to get a new hauler with a better service record. Whatever the reason is, a new vendor will take over services for the previous one.
Getting a new hauler can seem like a daunting process, but these step-by-step instructions below will show you exactly what to do.
You’ll need to:
Cancel your auto-renewal clause
Make a list of questions for potential haulers
Compare bids
Set up a new contract
Let your current hauler know you are terminating service (if applicable and only after determining that there are other waste hauler options in your area).
A reliable hauler who offers fair pricing will prevent a lot of future waste issues. Conducting a careful search will help you find a vendor that is right for you - and does their job well.
Cancel your auto-renewal clause.
Cancelling this clause will give you the time you need to find new service and get a new contract in place. If you don’t cancel this clause, your contract will almost certainly renew with your current terms. This is likely not ideal because your current contract probably guarantees you’ll overspend on your waste expenses. Most contracts don’t have clauses that limit price hikes, or ancillary fees. And they don’t typically include service provisions and term limits of 3 years. Having these specifics ensures you maximize your savings opportunities.
Ask Potential Waste Hauler Thorough Questions
Before you do anything else, make a list of everything that bothers you about your current waste management situation.
Do you want someone who will promptly pick up your trash? Want a contract that precludes price spikes? Whatever concerns you have, you want to make sure that they don’t become a part of your new contract going forward.
Once you have a list, you can then ask potential haulers what their approach is to each of the issues you have. Whoever you partner with will need to be willing to listen to your needs and act accordingly.
Compare Waste Hauler Bids
To find other area haulers, try googling “waste haulers near me.” Contact them and ask them to provide bids for servicing your locations. You’ll need to tell them:
The number of locations you have
The types of equipment at each site and their size
How frequently each site and equipment should get serviced
Most waste sales representatives will get back to you with estimates in under a week.
Alternatively, you can also ask other businesses or companies in your area for recommendations. Since waste haulers can have spotty service records, it’s a really good practice to employ someone you know who has a good service record.
You’ll want to go over your list of service issues or questions with the haulers and see what their responses are. Some may be a bit cagey about their service reliability. Others may not care to limit their price hikes. Asking questions will root out the bad apples.
Pick the Vendor that is Right for You
The more bids you have, the more you can compare services and find the one that’s right for you. You’ll obviously compare prices, but you’ll also need to compare service levels. You don’t want to go with the cheapest option if they have an awful service record!
Let the best vendor know that you’d like to employ them starting on a specific date. Make sure to coordinate your waste schedule with your old and new waste vendors so that you don’t have a service gap!
Your new vendor will then send you a new contract. Look over it carefully - does it include all the language it needs to? Does it prohibit price hikes or cap them at a specified, annual percentage? Does it eliminate or cap ancillary fees?
Since you have at least one other bid from an area hauler, you have a pretty good idea of the market rates for waste services. You can use this information transparently with the hauler you’re negotiating with.
Suppose, for instance, that you’ve selected a hauler whom you know has a great service record but whose prices are a little steep. Let them know that another area vendor has underbid them and see if they would be willing to reduce their rates.
The hauler’s aren’t guaranteed your business until the new contract is signed, and you can go elsewhere, if necessary. So they have incentive to work with you!
You may not have success every time you try, but it never hurts to ask.
Only after you have a new contract in place should you let the other vendors/bidders know that their services won’t be needed.
Terminate the Old Service Provider
After you have found a service provider, you will need to terminate as previously described per your contract specifications. Usually, you will need to send a certified letter to them informing them that you are terminating the contract and that they will need to remove their equipment by a certain date.
You may have to pay a termination fee (something you can find out more about on your contract), so be prepared for that in advance.
A typical termination fee (for prior to expiration) is the average of the most recent 6 invoices X 6. So if you pay $1000 a month, you’ll owe your hauler $6000. This may sound like a lot but for many companies, this is actually the less expensive option in the long run.
Most contracts require that you give 90-180 days notice if the standard clause is intact. Read your contract carefully to make sure that your termination notice falls within the required time allotment.
And most haulers require notice be given via certified mail and return receipt. So a simple email just isn’t going to cut it, unfortunately.
Want to know the exact language to put in a new waste hauler contract or service agreement? Fill in your info below, and we’ll send one your way.