Understanding Rental Operation Contracts and Why You Should Use Them

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Understanding Rental Operation Contracts and Why You Should Use Them

A rental operation contract, also referred to as a service agreement, is an agreement between a business owner and client that serves as a buffer for both parties to acknowledge details of a service or delivery and clearly outlines what will happen in the case of a cancellation or other unforeseen circumstance.

Rental operation contracts are incredibly important because they clearly outline what is expected from parties involved, who is going to be responsible for what and holds the client accountable for their end of the business. This way, no one is misunderstanding or misinterpreting logistics and expectations within a contract.

In the portable restroom rental industry, understanding rental operation contracts is crucial in landing business and covering your own costs should a client back out at the last minute or if your units are damaged after a rental period. Understanding and using rental operation contracts protects your business against cancellations should you receive notice that an event is no longer taking place or a client changed his or her mind about using your business.

Special Event Service Agreements vs. Construction Service Agreements

It is important to include both special events and construction contracts in your business plan. Special events will bring in big paydays for your business, while construction contracts, especially those classified as long-term, are the bread and butter of your business that you can rely on as a consistent source of income.

Understanding the different clauses and information to include within a service agreement will serve your business well. In a construction or special event rental operation contract you will want to include:

  • Duration of the contract (drop off and pick up specifics)
  • Portable unit servicing agreement
  • Cancellation policy
  • Clauses for extending a contract
  • Add-ons for anchoring a unit
  • Optional insurance coverage
  • Bulk discount rate for multiple units
  • A clause dedicated to a percentage down to secure the date for an event or period of time for construction unit
  • Delivery and servicing fees
  • Add-on fees
  • Type(s) of units rented
  • Any other information pertaining to charges and upsells that are relevant to the event or long-term rental

On either side of the contract, a binding agreement ensures that both parties will be taken care of in the event of an accident, cancellation or miscommunication. You want to make sure the cost you are investing into a job is adequately covered while keeping in mind that as a business owner, you want to turn a profit instead of losing out on a contract when the work has been completed.  You and your client will rest assured that each party is clear and concise with their wishes and the job will be carried out smoothly!

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  1. Wayne says:

    Do you have a sample contract? Maybe in MS Word or Google Docs template, so we can easily modify it for our specific needs?

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