What to look out for in your waste service agreement

Hidden costs: Are you paying too much?

Start with the price, but don't stop there. Waste haulers often quote a low starting rate, then add extra charges that make your final bill much higher. Compare your rates against typical industry pricing for businesses similar to yours. If your costs seem high, they probably are.

Watch out for these common hidden fees on your invoice:

• Fuel surcharges: Often a percentage of your bill, fuel surcharges are an  extra profit for your hauler in addition to actual fuel costs. For example, a 5% fee on $200/month costs you $120 extra per year.
• Environmental/Regulatory fees: Vague fees that haulers might set themselves, not always tied to real compliance costs.
• Admin/Billing fees: Charges just for sending you a bill. Basic admin shouldn't cost extra.
• Container fees: Charges for bin rental or "refresh" programs. Bins usually last for years without needing replacement.
• Minimum load fees: Penalties if your roll-off bin isn't deemed "full enough," which discourages waste reduction.

These hidden fees can sneakily drain your budget. Make sure your contract clearly lists all possible charges. Ask questions and push back on fees that seem unfair.

Also, check if your pricing is flexible. If your waste amount changes, a fixed monthly fee might mean you're paying for half-empty pickups. Ask about options like pay-per-pickup or plans that let you easily change container size or pickup frequency without major penalties. A good contract means you pay fairly for the service you actually use.

Reliable service: Are your pickups on time?

You need your waste collected reliably. Missed pickups lead to unhappy customers, overflowing bins, health issues and pests. Your agreement needs clear rules about service quality. What if they miss a pickup? How is "missed" defined? How quickly must they tell you about delays?

Rescheduling: The contract should say how quickly they'll come back (ideally at no extra charge).

Compensation: What happens if service is bad? Look for refunds, credits, or the ability to cancel without penalty if problems keep happening (a 'failure to perform' clause). If the contract is silent on fixing service issues, that's a red flag.

Don't accept vague promises like "best efforts." Look for specific standards (e.g., "missed pickups rescheduled within 24 hours free of charge") and clear consequences if they fail. Bad service disrupts your business and can even lead to fines. Keep records of any service problems – this gives you leverage.

Who's responsible? Understanding liability

Waste contracts divide responsibility between you and the hauler. Know who pays if there's an accident, property damage, or a rules violation.

Hauler's limitations: Haulers often limit their responsibility, especially for "consequential damages". For example, if they miss multiple pickups, the contract might state they are not responsible for lost sales if the mess drives customers away. They also use 'force majeure' clauses for circumstances beyond their control (natural disasters, labor strikes). Ensure the 'force majeure' definition isn't excessively broad.

Your responsibilities: Understand what you need to do: provide safe access for trucks, avoid overfilling bins, and keep forbidden items out. Breaking these rules can mean extra fees, service stops (while still being charged!), or being liable if something goes wrong.

Fairness: Look for a  'mutual indemnification' clause where each side covers costs if their actions cause harm to the other. Make sure this is balanced. Confirm the hauler has proper insurance (liability, workers' comp) and ask for proof. Don't agree to terms that make you responsible for the hauler's mistakes.

Contract length & cancellation: Avoid getting trapped

This section catches many businesses off guard.

Watch out for "Auto-Renewal" (Evergreen Clauses): These automatically lock you into a new long-term contract (often 3-5 years) unless you send a cancellation notice during a very specific, short window (like 60-180 days before it ends). Haulers rarely remind you! Mark your contract end date and cancellation deadline on your calendar with multiple reminders. Try to negotiate out of auto-renewal, switch to month-to-month after the first term, or get shorter renewal periods.

Early Cancellation Fees ("Liquidated Damages"): Check the penalty for ending the contract early. These fees can be huge (sometimes equal to months of service), making it too expensive to switch providers, even if you're unhappy. Aim for reasonable exit provisions (e.g., no penalty after completing the initial term). Shorter initial commitments (such as 3 years) provide greater flexibility.

Sustainability & rules: Meeting goals & requirements

Your waste service should help you be green and follow the law.

Recycling & Waste Reduction: Does the contract support your recycling or composting efforts? A good partner offers these services, provides the right bins, helps train staff, and tracks results. Better recycling often means lower overall waste costs.

Following Regulations: The contract must state the provider will follow all laws. Your hauler should help you stay compliant, especially as regulations change. For example, businesses operating in Ontario need assurance that their waste provider understands and complies with specific requirements like the transition of the Blue Box program to a full producer responsibility model. 

How Evirum can help: Get expert assistance

Checking and negotiating waste service agreements takes time and know-how. A specialist like Evirum offers big benefits:

• Identify problems: Evirum experts check your contract line-by-line, spotting hidden fees, high charges, and unfair terms. We compare your rates to the market to ensure you're getting a fair price.
• Customized plan: We recommend service options (like pickup schedules or bin sizes) that fit your business needs and negotiate guarantees for reliable service.
• Negotiations: Using our industry knowledge, we fight for clear pricing, fair terms, and reasonable renewal/cancellation rules. We target hidden fees and protect you from surprise rate hikes.
• Long-term support: Our help continues after the contract is signed. We help adjust your service as your needs change, keeping it cost-effective and compliant. We offer a free, no-obligation agreement review to find savings right away.

Make your waste service agreement work for you

Your waste contract directly impacts your budget and daily operations. A bad contract wastes money and creates problems. A good one means predictable costs, reliable service, and helps you meet sustainability goals.

Don't wait for issues to pop up. Check your current waste agreement now. Use the tips in this guide to spot problems and opportunities. Small changes can lead to big savings and smoother operations.