Key Considerations When Choosing a Trash Company (Part 3)

Trash Contracts 101: Terms and Traps to Avoid

In Parts 1 and 2 of this series, we covered choosing a waste provider and deciding between using a broker or going direct-to-hauler. Now let’s dive into trash contract specifics you need to understand before signing.

First and foremost, comb through the fine print. Trash contracts contain legalese that can trip up unsuspecting customers. Some key areas to focus on: 

• Rate locks – Try to negotiate fixed pricing for the contract term, avoiding variable rates if possible. Otherwise, caps on increases should be included.
• Auto-renewal clauses – Don’t get stuck in perpetuity. Seek ability to cancel upon expiry, or build in opt-out windows.
• Early termination fees – Understand clearly defined costs for exiting a contract early. Seek reasonable penalties scaled to remaining term.
• Service failure provisions – Ensure language provides you recourse if the provider underperforms, with penalties for missed pickups.
• Insurance requirements – Review indemnities protecting you from liability for injuries/accidents related to their equipment and workers.

Getting out of a bad contract can be extremely difficult. Know your options before signing anything: 

• Exit clauses – Utilize clearly defined termination windows or triggers like rate hikes.
• Buyouts – You can pay an early termination penalty to cancel. But fees often equal 6+ months of service.
• Document issues – Record service problems and written complaints required for contract breach.
• Mediation/arbitration – Seek third-party intervention if provider won’t release you from an agreement.