Commercial contracts

[Heidi J.]

We have competitors in our area that offer 3 and 5 year contracts for commercial spraying contracts. What are the consensus of these type of contracts and do they work for you? Any advice would be appreciated!

Heidi J.

[IMAGE]

get em if you can. try to put in at least a 1% price increase for each year if you can.

[mngrassguy]

All my customers are on 3 year AGREEMENTS. Contracts are worthless. If I'm not doing my job, they won't pay. If they don't pay, I don't do the job. My agreements include a 30 day cancellation clause executable by either party.

[Sammy]

I believe that in Michigan, you can't make a contract longer than one year for this industry.

[Heidi J.]

I believe that in Michigan, you can't make a contract longer than one year for this industry.

TG has always done 2 year in our area, but know they are jumping to 3 and 5 year.. I have been considering it for a while now. Just don't know how to go about. We gave a couple bids to some athletic fields this year, but they were "under contract" from Scott's. The funny thing was, is Scott's jumped their price 70% this year, while under contract:rolleyes: But these fields didn't want to break the contract;) So maybe it is in the wording of the "contract/agreement", because alot of people around here have them!

[Sammy]

TG has always done 2 year in our area, but know they are jumping to 3 and 5 year.. I have been considering it for a while now. Just don't know how to go about. We gave a couple bids to some athletic fields this year, but they were "under contract" from Scott's. The funny thing was, is Scott's jumped their price 70% this year, while under contract:rolleyes: But these fields didn't want to break the contract;) So maybe it is in the wording of the "contract/agreement", because alot of people around here have them!

Maybe you can make a commercial contract for more than a year.
I missed, "commercial " in your post for some reason, (My Bad)

Home owner, NO. I read about it on Michigan web site.

[txgrassguy]

Commercial entities prefer contracts for several reasons.
Stability of a known service provider.
The service provider usually has to qualify through insurance coverages etc for consideration so the commercial entity has a level of indemnification.
The contracts should indicate price structure over the agreed upon period allowing the commercial entity to forecast or budget accordingly.
A well written contract will indicate grievance/dispute resolution process for both parties with a clearly defined termination clause included.
All of this said a surprising number of lawn care companies still labor under the misconception that a contract or written agreement isn't necessary then become aggravated when the client (whomever/whatever they are) terminate service without notice.
The company I own/operate services commercial and high end residential clients and all are on either a one year renewable contract with stipulations or three year contracts with price allowances.
since enacting and enforcing this process I have observed a marked increase in the economic stability of my forecast/budgeting process which has allowed me to pursue even further the demographic base I have identified.
I am asked all of the time why my business is growing when others are struggling - and the contracts are one reason why.
Simply put I enter into no service agreement without a written contract, and the longer I can assign a client to a contract the better off my company becomes.