Understanding Your Waste Management Contract: Hidden Fees to Watch For
Waste management contracts are notoriously complex, filled with industry jargon and hidden fees. Here’s what you need to know to avoid overpaying.
Common Hidden Fees
1. Environmental Fees and Surcharges
These mysterious charges often increase without notice:
- Fuel surcharges (can add 10-20% to your bill)
- Environmental recovery fees
- Regulatory compliance fees
Watch out for: Fees that aren’t tied to actual fuel prices or that increase faster than inflation.
2. Administrative and Service Fees
Small fees that add up:
- Account maintenance fees ($5-15/month)
- Statement fees
- Payment processing fees
Tip: Negotiate to have these waived or bundled into your base rate.
3. Auto-Renewal Clauses
The most expensive “fee” of all:
- Automatic 1-3 year renewals
- Steep cancellation penalties
- Automatic price increase clauses (5-15% annually)
Action: Mark your calendar 6 months before renewal to renegotiate.
4. Contamination Fees
Charged when recycling bins contain non-recyclables:
- Can be $50-200 per incident
- Often subjective
- No photo evidence required
Protection: Request photo documentation before any contamination fee is charged.
5. Over-Service Charges
Paying for more than you need:
- Bins larger than necessary
- Too-frequent pickups
- Services you don’t use
Solution: Conduct a 30-day audit to right-size your service.
Red Flags in Your Contract
Look out for these problematic clauses:
- Price increase caps above 5% annually - These are often negotiable down to 2-3%
- Evergreen clauses - Auto-renewal terms that extend beyond 1 year
- Early termination penalties - Should be waived if hauler fails to perform
- Unilateral price change rights - Hauler can raise prices without your consent
What to Do Next
If you found any of these issues in your contract, you’re not alone. Most businesses have at least 2-3 of these problems.
Two options:
- Review and renegotiate yourself (plan for 10-20 hours of work)
- Hire experts who do this daily (at no upfront cost to you)
Get Help Today
At WasteWatchers, we review contracts daily and know every trick in the book. We’ll find the hidden fees and negotiate them away - you only pay if we save you money.