Washroom Contracts – Where You REALLY Stand
Why are washroom services contracts so confusing?
These are the reasons;
- to confuse
- to overwhelm
- to irritate
- to intimidate
- to manipulate
- and ultimately, put you off even attempting to change!
Having recently launched Source Hygiene Services, it’s become apparent that existing suppliers who have performed an average service, at best, don’t like it when their customer tries to terminate a contract. The typical response is;
- You are contracted until x date and will therefore owe the monthly fee multiplied by the number of remaining months on your contract.
EG. (numbers have been rounded for sake of the example)
- £5 per bin per service
- 50 bins
- 2 years remaining on the contract (12 services per year)
- £5 x 50 = £250
- £250 x 24 services = £6000 (the cost to get out of your contract, according to your washroom services supplier)
WRONG – why?
It’s all about an accurate pre-estimate of loss.
That’s a legal term we’ve become very familiar with recently but in Layman’s terms it means this;
How much money is the supplier losing out on?
Not the entire sum due to be billed (£6000). Why?
Because it wouldn’t have cost the company £6000 to conduct the service. If it did, they would be operating a £0 profit, right?
The objective of this ‘threat’ is to do just that; intimidate the customer with a big invoice and a copy of their T&Cs. Chances are, it’s totally unenforceable as the sum requested is not a genuine pre-estimate of loss and also, the T&Cs are probably poorly composed in the first place.
What You Can Do?
If you want to change supplier, by far and away the best approach is to be diplomatic and state that you’ve been with them for x number of years and always paid on time. It’s time for a change. What are their thoughts?
If this isn’t met with equal diplomacy and they come back with the standard letter that threatens a large invoice then send us over a copy of your contract.
Breach of Terms
How good has the service been? If it’s been a bit patchy, to say the least, then the supplier is probably in breach of terms if they have failed on more than one occasion to deliver the service they promise. Again, if you send us over a copy of your contract, along with any details of incidents, we can take a look at it for you.
Where You Stand
Our solicitors are experts in commercial contract law and can give you a very accurate and clear answer on your legal position.
We have a contract that has no nasty surprises or loop holes. It’s designed to give you peace of mind that we will do what we say we will.
If you want to change supplier, this will not be met with an aggressive retort requesting unjust sums of monies ‘owed’.
We’re setting out to do our business in the right way from the off. Good service, good value, simple contracts.
Further reading; Examples of genuine pre-estimates of loss and penalty charges
*Source Supplies are not offering legal advice. The above are guidelines for you to base your contract research upon.