Environmental Services Update-August 2017
Edge Insights’ experts are constantly monitoring Environmental Services industry in order to help ensure the best possible pricing and contract terms for our clients. The following report lists some of the recent news in the Environmental Services industry.
Vendors sometimes use clever tactics to get a customer to sign a new agreement even when there is already an agreement in place. Generally, the new agreement will have rates, fees, and/or terms and conditions that are less favorable than the current contract.
Edge’s experts have a checklist of items used to negotiate rates and fees, scrub contract terms and conditions and make sure the contracts are equitable to both parties.
If a vendor should approach you or your staff to implement a new contract, please contact Edge’s Environmental staff before signing. Edge will do a thorough account review to help avoid a possible costly mistake.
Container Overage Fees:
Over the last several months, some major waste haulers have implemented a new charge related to container overflows. Vendors impose this charge when a dumpster’s lid will not close properly because the material is above the top of the container. A single overage can be as high as $150 plus additional fees and surcharges. In some cases, these charges can more than double or triple the normal monthly invoice.
Vendors have different terms for these charges that include Snapshot Overage, Overage Service Yards, and Waste/Recycling Overage. The customer is generally unaware that an overage has occurred until one or more of these charges show up on their invoice.
The vendors give the following reasons to justify the overage charges:
- -there is an added cost to dispose of the extra material
- -the excess material can cause routing issues
- -overflowing material can spill out of the dumpster when being serviced
- -spillage can lead to extra labor costs or customer complaints if the driver does not pick up some spilled material
- -an increase in service may be needed
As part of Edge’s monthly invoice review process for accuracy and contract compliance, Edge now also monitors the invoices for any overflows charges. If an overflow occurs, Edge contacts the vendor for additional information and evaluates the steps that can be taken to avoid the charges in the future.
At a recent annual conference of the Professional Recyclers of Pennsylvania, the keynote speaker made the following predictions for the recycling markets:
- -The price of oil will remain low causing plastic recycling rates follow suit
- -Recycling exports will decline due to global economic growth and environmental concerns
- -Plastic bottles and aluminum cans will continue to be made more lightweight causing higher counts to be needed per ton
- -Food discard collection will increase for both the residential and commercial markets
- -Single stream recycling may evolve to include more material and be considered mixed trash
- -Material recovery facilities (MRFs) will add more optical sorting
- -Vendor consolidation will continue creating fewer larger companies
Information provided by the Environmental Services Division of Edge Insights, Inc.