If your business has regular dumpster service, you probably signed an agreement once and haven't read it since. The contract runs for a stated term, and several of its terms can affect what you pay and when you can make changes. This guide covers the sections worth finding in your own agreement and the questions that go with each one.
It's written for ongoing commercial service, not one-time dumpster rentals for a project or cleanout.
How long does the contract last, and does it renew?
Start with the term. Look for three things:
- The initial term: how long the agreement runs, and the date it starts.
- Automatic renewal: whether the contract renews on its own at the end of the term, and for how long (another full term, or month to month).
- The notice window: how many days before the end of the term notice has to be given to stop a renewal, and how that notice must be delivered. Some contracts require a specific method, such as certified mail.
Contracts word this differently, so read the text for your own agreement. Put the notice dates in a calendar once you've found them.
Can the price change during the term?
Look for the section on charges or rate adjustments. Questions to answer from your own contract:
- Can the hauler increase the rate during the term, and for what reasons?
- Is there a cap on the size or frequency of increases, or is the increase open-ended?
- Is an increase tied to a published index, such as the Consumer Price Index, or set at the hauler's discretion?
- How are you told about a change, and what does the contract say happens if you don't respond? Some contracts state that continued payment, or not objecting within a set number of days, counts as agreeing to the change.
What do the fees and surcharges cover?
Invoices can include charges beyond the base service rate. These go by different names, such as fuel or energy surcharge, environmental fee, regulatory fee, and administrative fee. For each one, check:
- Is it a flat dollar amount or a percentage? If a percentage, a percentage of what?
- Does the contract say how it is calculated, or does it point to a page on the hauler's website?
- Can it change during the term, and with what notice?
- Does the contract describe a way to have the fee waived or reduced? Some administrative fees, for example, are tied to enrolling in paperless billing.
A charge that the contract doesn't describe is worth asking your hauler about.
What happens if you end the agreement early?
Look for sections titled early termination, liquidated damages, or default. Find out:
- What triggers it, and what the formula is. A common type multiplies a monthly average by a number of months. Others use a flat amount or the value of the remaining term.
- Whether separate charges apply for equipment, such as a compactor, that the hauler bought or leased for your account.
- Whether the contract adds attorney's fees or collection costs on top of the formula.
You don't need to be planning to leave. Knowing the figure in advance means you can compare it with other options if circumstances change, such as a move or a closure.
What service does the contract promise?
Check the basics against what you actually receive:
- Container size, number of containers, and pickup schedule.
- How overloaded containers are handled, and whether the contract defines "overloaded" in measurable terms.
- What counts as excluded or prohibited material, and who is responsible for it if it ends up in your container.
- Whether the contract has a service guarantee, and what you have to do to use it. Some guarantees apply only after a written demand.
What does the fine print say about disputes?
These sections cover how disputes are handled:
- Time limits: some contracts set a deadline for disputing an invoice, counted from a date the contract defines.
- Arbitration and class actions: whether disputes go to arbitration, and whether the same rules apply to both sides.
- Terms outside the document: some contracts incorporate terms from a website, which can change over time. If yours does, save a dated copy of each referenced page.
- Assignment: whether the hauler can transfer the agreement, whether you can, and what the contract says about a sale of your business.
A short checklist
- Find the term, renewal, and notice dates, and calendar them.
- Note how price changes and fees are described.
- Find the early termination formula.
- Check the service terms against your invoices.
- Save a copy of the contract and any website pages it refers to.
- If something is unclear, ask your hauler to explain it in writing.
Getting help finding these terms
Commercial Waste Review is an automated tool that reads the contract and invoices you upload and summarizes what they say, with questions you can take to your hauler. It describes your documents. It doesn't give legal advice.