AntoineAsphalt.caCommercial Snow Removal Contracts in Ontario: Seasonal, Per Event, Per Push or Hourly?
- Seasonal contracts give the most budget certainty and, according to Ontario procurement guidance, the best incentive to use less salt, though you may pay more in a light winter.
- Per-event and per-push contracts track the actual winter but make budgets less predictable.
- Hourly or time-and-materials billing, including paying by the bag or tonne of salt, can encourage using more salt than needed.
The five structures
Most commercial snow contracts use one of five pricing structures. Each one shifts risk between owner and contractor differently. This comparison is for education only.
| Structure | How it's billed | Budget certainty | Salt incentive | Watch for |
|---|---|---|---|---|
| Seasonal (fixed price) | One price for the season, often in monthly payments. | High | High | You pay the same in a light winter. Check how many events are included. |
| Seasonal with a cap | Fixed price up to a set number of events or centimetres, then per event. | Medium-high | High | Know exactly where the cap sits and what extra events cost. |
| Per event | A set price per storm, often in depth bands. | Medium | Medium | How a long, multi-day storm is counted. |
| Per push / per visit | Billed each time the crew services the site. | Low | Medium | More visits mean higher bills. Agree what counts as a push. |
| Hourly / time & materials | Hours and material billed as used. | Low | Low | Paying by the bag or tonne can encourage using more salt than needed. |
What Ontario procurement guidance says
The Toronto and Region Conservation Authority's 2019 procurement guidance for parking-lot snow and ice management:
- prefers pricing that rewards using less salt, such as a seasonal lump sum;
- notes seasonal pricing can cost more in light years;
- says per-event pricing doesn't reward over-salting;
- says cost-plus or time-and-materials pricing "does not encourage efficient and effective use of salt".
Hamilton's winter in numbers
Hamilton Airport averages about 156 cm of snow a year (Environment and Climate Change Canada 1981–2010 climate normals), so most winters bring plenty of events. Use this as context for your own budget, not as a recommendation for one structure.
What every contract should spell out
Whatever the structure, write these into the contract:
- The written standard a site is kept to., written as "substantially clear of hazards" rather than "bare pavement"
- The snow depth at which plowing starts, as set in the contract. for plowing, and condition-based salting
- Priority areas and storage areas on a site map
- What record you get after each event
- How long or back-to-back storms are counted
- What's excluded, such as hauling
- Insurance certificates
- Term and renewal
Timing
SIMA's procurement standard suggests issuing requests for proposals by May and awarding by September 1.
Frequently asked questions
Which contract is cheapest?
It depends on the winter. A seasonal price can cost more in a light winter, while per-event, per-push and hourly billing rise with heavier winters. Compare structures against your site and budget rather than looking for one cheapest type.
What is a cap?
A seasonal contract with a cap is a fixed price up to a set number of events or centimetres. Past that point, extra events are billed per event. Know exactly where the cap sits and what extra events cost.
Should salt be billed separately?
Ontario procurement guidance cautions that paying by the bag or tonne of salt, or on time and materials, can encourage using more salt than needed. Pricing that rewards using less salt is preferred.
When should we tender?
SIMA's procurement standard suggests issuing requests for proposals by May and awarding by September 1.
Related
General planning information. Review any contract with your own advisors.
Request a proposal
Tell us about the property. We'll walk the site and send a written proposal. Or call (647) 459-7775.