The short answer
Before signing, find every clause that can change the price or lock you in: escalators, surcharges, auto-renewal, termination, minimums and rescheduling. Ask for caps, clear triggers and notice periods. This is general information; have your counsel review the contract.
Price escalators
- Fixed: a set percentage each year. Easy to budget.
- Index-linked: tied to a published index such as CPI. Ask which index, which month and whether there is a cap.
- What to check: when it applies, the base it applies to, a cap, and how much notice you get
Fuel surcharges
- How they usually work: a charge that applies when a published fuel price passes a threshold
- What to check: which index, the baseline, the formula, a cap, which services it applies to, and that it comes off when prices fall
- Red flag: a surcharge with no index or formula
Other terms worth reading twice
| Clause | What to ask |
|---|---|
| Auto-renewal | When does it renew, and how much notice ends it? |
| Termination | Can either side end it for convenience? With how much notice? |
| Minimums | Is there a minimum spend or number of visits? |
| Weather and rescheduling | How are weather days handled, and who pays for a canceled mobilization? |
| Payment terms | When are invoices due, and are there late fees? |
| Adding buildings | At what rates? |
| Insurance and indemnity | What coverage is required, and who indemnifies whom? Ask counsel. |
Put it in the RFP
Ask every bidder to state escalators and surcharges in the same format, so they can be compared. See how to write an RFP for commercial exterior services and how to compare exterior services bids.
Plan the whole program with the Exterior Maintenance Planning and Budgeting guide, or share your buildings and we will turn them into a tailored annual plan and a quote.
