Waste management is a critical service that affects communities, businesses, and the environment. When public entities (such as municipalities) enter into agreements with private waste management companies to handle the collection, disposal, and recycling of waste, a carefully crafted contract is essential. These contracts help ensure that both parties meet their obligations, comply with legal requirements, and provide efficient, effective services to the public.

Here are some important provisions that should commonly be found in contracts between public entities and private waste management companies:

• Scope of services
• Performance standards and penalties
• Payment terms and compensation
• Liability and indemnification
• Compliance and regulation
• Waiver of consequential damages
• Audit and reporting requirements
• Force majeure

Of course, legal issues can arise out of any of these contract terms.  For instance, careful consideration should be given to the timing of the payment terms and ensuring that your company is not assuming unreasonable exposure by virtue of the liability and indemnity clauses.  Further, waste management companies should also consider requesting a waiver of consequential damages. 

Stay Tuned

This is the first of a series of blogs related to legal issues that waste management companies might encounter. Be sure to look out (or subscribe) for my continued discussion of these issue next month on the Texas Construction Law Blog or contact me in the interim with any immediate questions.