Why is it so hard to track waste/recycling contract expiration dates?
One major reason is contract auto-renew, which often catches people off guard.
In the property management industry, someone once told me “Our clients rarely review their waste removal contracts. Since they can run 3 years, they often miss the deadline for making any changes. They end up with a contract auto-renew.”
We hear this from property owners, property managers, and small business owners almost every day. Most often, when the thought of shopping around disposal rates becomes actionable, the existing contract has renewed for multiple years. Anything short of paying liquidated damages to cancel the contract is the only way to make a change.
Why is it so hard to track waste and recycling contract expiration dates? The challenge often lies in the clauses that allow contracts to auto-renew without clear notice.
First, let’s look at what the “expiration date” really is. Usually the expiration date is considered to start on the date on which service commences.
If the signature date reads JANUARY 1, 2023 but the start date is listed as APRIL 1, 2023, the contract will expire (usually 36 months) on MARCH 31, 2026 and not DECEMBER 31, 2025. When you have a small window of time in which to send a cancellation letter to the waste hauler, this 90-day period could impact the validity of your letter. Especially in avoiding an auto-renew of the contract.
Second, should anyone want to cancel a contract, their timeframe for doing so is extremely limited. Most trash haulers will have language in their service agreements that allow for a cancellation “window” of time extending 60 or 90 days. Usually, it’s between 60-120 or 90-180 days prior to the end of the current term.
In the example above, the contract that expires on 3-31-26 will need to be cancelled during a specific window of time. If the terms are 60-120 days, then the waste hauler must receive notice between 11-30-25 and 1-31-26. What happens if the cancellation letter is received a day earlier or a day later than the cancellation window? Your hauler might just throw it in the trash. Technically, the contract language hasn’t been followed, leading to the contract auto-renew.
Finally, if you can figure out your window of time to send cancellation, where will you set up your reminder? Outlook? Google calendar? A Post-it note on your desk? Your waste hauler is NOT going to call you with a reminder. Therefore, the #1 priority for anyone who just signed a contract is to verify the cancellation date and set multiple reminders. Somewhere between 60 and 120 days prior to the end of the term, to prevent an unintended contract auto-renewal.
…or simply strike that auto-renew clause from the start.
Mark Lestina
President – Wastemaster, Corp.
773-858-5642