Waste Management Contracts – Why They Matter14 Jun 2012 | Filed under: Supplier Management
All organisations generate waste of some sort. Often this is simply disposed of in ‘general waste’ bins collected weekly by one of the big national firms or a smaller local company. It’s one of those ‘necessary’ costs we can’t do anything about, or can we?
Terms and Conditions in the waste industry are often extremely strict and almost border on the unfair in some cases! The large national companies such as Biffa, SITA and Veolia all have a requirement to give notice when terminating a contract. The period of notice varies slightly between them but they all amount to the same thing.
SITA, for example, require the customer to give notice in writing, sent by registered mail between 3 & 6 months before the end date of the initial term or the anniversary of that date. Otherwise the contract rolls over for a further 12 months!
In other words, say a contract runs from 1.1.12 to 31.12.12. The client is required to serve notice between 1.7.12 and 31.9.12 to end that contract. Failure to do so will cause the contract to roll over until the 31.12.13 at whatever price SITA deem!!
Furthermore, heaven forbid that you may require an additional container! That will require a new 12 month agreement. Ludicrous!
Therefore, it is good practice to automatically serve notice during the window (and subsequent windows) regardless. At least then you have the opportunity to renegotiate a price for the next 12 months or change supplier if you feel the need.
Believe me, the companies enforce this term rigidly with their customers as it is effectively a licence to print money and to tie clients in for at least a further 12 month period. The additional cost can be considerable as a client of mine recently discovered.