Introduction to Commercial Lawn Maintenance Contracts
Commercial lawn maintenance contracts are designed to set forth the mutual obligations of parties who are entering into a contract for the provision of lawn maintenance services. In other words, these contracts set out the way in which lawn maintenance services will be provided, the scope of services to be performed under the contract and the length of time for which the contract is entered into. Typically , commercial lawn maintenance contracts will also set forth terms related to payment and other important issues related to the servicing of commercial property.
There is no one-size-fits-all commercial lawn maintenance contract. A number of different approaches can be taken, depending on the particular business at issue. The type of commercial property at issue will also have an impact on the way in which a commercial lawn maintenance contract is drafted. For example, a commercial lawn maintenance contract with a school or day care center may contain a number of different terms that will not be present in a commercial lawn maintenance contract for a business office.
Critical Terms of a Commercial Lawn Maintenance Contract
The first element of a commercial lawn maintenance contract is the scope of services to be performed. This would include specifications on the number of cuts of grass each month, trimming or blowing, fertilization, weed control, edging, aerating, de-thatching, mulching, and any other services deemed appropriate by the parties. There should also be a section detailing the frequency of services. Generally, this type of contract will specify that services are to be performed weekly or bi-weekly. The parties may also agree to whether services should be performed on a particular day of the week, or if another arrangement may be necessary based on the weather. Payment terms should also be included. Sometimes, the contract will provide for a flat fee per mowing. Other arrangements may include a flat monthly fee regardless of whether the lawn is mowed four times or five times in a given calendar month, or a per mowed flat fee regardless of the number of mows in a given month. The duration of the agreement should also be included. A provision concerning automatic renewal, renewal upon notice, termination upon notice after a certain time period, and termination for cause are also advisable. The termination provisions are most important when the property owner requires immediate service. Absent a reasonable limitation, however, service providers frequently attempt to terminate the contract without cause and this results in frustrated clients.
The Benefits of a Commercial Lawn Maintenance Contract
Enter into a commercial lawn maintenance contract offers property owners the opportunity to receive lawn care services in a timely and reliable manner. Such a contract guarantees that owners will have access to proper lawn care on a periodic basis. In addition, it may protect owners from a possible breach of contract if a dispute with a contractor arises.
Having a long-term contract helps business owners avoid the need to have to search for another company that can provide these services on short notice. A contract that involves a set price also benefits owners. They will not have to worry about sudden spikes in the cost of service or unexpected increases in the number of services, like routine lawn mowing.
A commercial lawn maintenance contract may become a source of protection for the owner in addition to being a source of service. Suppose, for instance, that a contractor refuses to make a scheduled service or that a contractor provides periodic maintenance services instead of scheduled maintenance services. A contract that involves specific terms governing performance will help a property owner enforce the provider’s obligations.
There is no singular circumstance for which a contract for these services would be as beneficial to a property owner. The precise performance under a contract would probably have to be governed by the situation. But to the extent that the services are periodic, there is probably no situation in which they would not be useful.
Selecting the Right Commercial Lawn Maintenance Service
When evaluating commercial lawn maintenance providers, of course, reputation is very important. We favor long standing companies. There are a number of ways to check on a provider’s reputation. Referrals are most valuable. When hiring a maintenance provider ask for referrals. However, that does not provide any information about how the work was actually performed, just that it was performed.
Next we look at customer reviews. The best reviews are from those found online. They tend to be unbiased with no way to manage the outcome. Reviews are almost always more positive than negative. People are always more willing to comment on a good experience than a bad one. As a law firm that is true for us as well. The reviews on our website are positive but not as numerous as I would like to see. It is human nature and most people simply don’t take the time to give compliments but are quick to jump on the same platform to complain. Still, we look at reviews as an excellent sources for selecting and evaluating service providers.
Once you have evaluated reputation and reviews of a service provider you need to look at your specific requirements and find a company that can tailor a contract to fit your needs. Does the company have the ability to perform the services as described in the scope of work? In today’s tight economic environment this point is critical. Some lawn maintenance contracts have a scope of more than 135 pages. Whit a scope that long, only large lawn maintenance providers will be able to perform all of the requirements. A large Lawn Maintenance Company will have the ability to hire out some of the tasks that may require a specialized crew (such as irrigation repair or tree trimming). That same requirement that only a large provider would be able to handle could be problematic for a smaller company. If a small company gets into trouble when a water main leaks, it could well result in paying penalties and being dropped by the management company.
Common Issues and Solutions
Service Dissatisfaction
One of the most common issues small business owners face as it concerns maintenance contracts is dissatisfaction with the overall work. Whether a commercial lawn maintenance service is doing an adequate job keeping up the appearance of the property is a frequent cause of complaint. In some cases, this may be the fault of the service provider, in other cases it has to do with expectations on behalf of the client. Either way, there is often a lack of communication, which is the root of the problem. Equal to this problem is a lack of communication. A commercial landscaping operation needs to speak with you upfront about your expectations, and regularly touch base during the contract period. Any communication breakdown can quickly lead to dissatisfaction .
Contract Disputes
Although commercial lawn maintenance providers strive to keep current with appropriate licensures, occasionally there are disputes about whether or not proper certifications are held. Further, improper pricing or bait-and-switching may cause the business owner to want to back out of the deal. These are a few things you can do to avoid any conflicts:
- Check the provider’s license status on the Attorney General’s website. This is free.
- If you are unclear about any fees, ask for a breakdown of costs in writing.
- Pay all deposits and invoices as you have agreed to in the contract. If you have a feasible reason for not doing so, contact the provider first and explain the situation.
- Keep good records of everything. This includes your own communications with the company (e.g., emails, texts, letters, etc.), as well as copies of your contract.
Legal Requirements and Other Considerations
There are various legal considerations and compliance requirements for commercial lawn maintenance contracts. The Federal Employer Identification Number (FEIN) is the most common federally required ID number. States may require construction companies to provide state issued contractor’s licenses, workers’ compensation experience ratings, proof of unemployment tax insurance coverage, general liability continuation or renewal certificates, proof of performance or maintenance (or both) bonds, and client references.
Also, as an employer or agent, you can be held liable for violations by your employees. In addition, you may be held liable for a subcontractor’s violation too if you have "concurrent" or "joint" liability. That can happen if you retain control over any part of their work, even if you don’t have the right to control every detail, and you also know or should know that such a violation is likely to occur and fail to take steps in furtherance of preventing such violation. Likewise, one party may be able to hold another liable for the amount of damages the injured party incurred. For example, if one sub-contractor fails to meet its obligations, then you may be able to recover the damages you suffered from the other party. In some instances, particularly in contract law, certain causes of action have time limits (called "statutes of limitation"). Most states require a written notice of breach be provided to responsible parties. States’ statutes of limitation run from four to more than fifteen years from the time the party seeking damages discovers the breach. However, contract statutes of limitation frequently cap within two years.
Conclusion & Final Thoughts
In this article, we provided insight into some of the issues that you should consider when entering into a commercial lawn maintenance contract. First, we discussed the general terms of a lawn maintenance contract that contractors will typically encounter, such as the term of the contract, the total cost and any required upfront or periodic payments. Next, we explored the key contract provisions that clearly set forth the parties’ rights and obligations, specifically with respect to the scope of services, service standards, schedule services, work products and reporting obligations. Then, we examined "extras" that should be included for the protection of the landowner and its property, including indemnification requirements, insurance requirements and audits . Finally, we discussed what should happen upon the completion of the contract term and whether the contract was ultimately renewed or extended.
When taking into consideration the items discussed in this article, it is our hope that you will have selected a well-structured lawn maintenance contract that will result in no disputes between you and your contractor where there are a limited number of staff on site and a large amount of work is performed every week. Selecting a well-structured commercial lawn maintenance contract after careful review and negotiation may also aid with maintaining a professional appearance for your business property.