Vendor Contract Fees

Vendor Contract Fees represent the rate structure for charges that may be audited against any Vendor Contract, and these Fees are used to determine the permitted charges and rate structures at the time of invoice processing.

Note - Fees at the contract header level are applied to every vendor service within the contract, but can be overridden by a Vendor Service Fee, which represents a Vendor Fee rate structure for a specific Vendor Service.

Restrictions

A Vendor Contract Fee inherently restricts the allowable charges agreed to on a Vendor Contract. Discovery allows for complex restrictions, including:

  • Not Allowed: A fee that has been struck from the vendor contract and if a line item for a fee such as this appears on the invoice, the line item will be automatically reduced to $0.
  • Uncapped: A fee that is allowed per the agreement, and does not have a pre-defined limit. A Vendor Invoice Line Item that matches to an uncapped fee will always be audited at its face-value, and no adjustment will be made.
  • $ per Vendor Invoice: A fee is that allowed per the agreement, but only up to a certain pre-defined dollar limit on the invoice.
  • % of Service Charges: A fee is that allowed per the agreement, but only up to a certain pre-defined relative limit taken as a percentage of the charge relative to the Service Charges. Service Charges are core costs, including recurring scheduled services, called Regular Service charges, Extraneous Charges, etc.

Amount

Enter the associated Percentage or Absolute value (depending upon the chosen Restriction).

Service-Level Override

Any overrides that need to happen are done at the service level. So for example if you had a Fuel Cap fee at 15% on every service in the contract except 1 in particular, you would set a 15% cap on Fuel. Then you would override the one service that doesn't have a fuel cap and set it to uncapped. This flexibility allows us to control our contracts at a more granular level.

List of Vendor Fees with Descriptions:

Vendor Fee Name Description
Account Setup Fee
A one-time charge applied to cover the administrative costs associated with setting up a new customer account.
Admin Fee A surcharge assessed by the vendor for administrative activity, such as manual invoice processing or other account activity.
Annual Price Increase The amount by which a vendor is permitted to increase service rates on an annual basis.
Bulk Item Removal
A fee for the removal of large bulky items.
Commercial Service Overage A penalty surcharge from the vendor for material overflowing out of the container or on the ground near a container.
Compliance and Business Impact Charge A surcharge assessed by the vendor to offset regulatory compliance charges.
Container Service A recurring charge applied per container that grants the customer one container exchange per container per year.
Contamination A penalty surcharge applied when any unacceptable items are placed into a container that covers the cost for the additional handling, processing, transportation and/or disposing of such unacceptable materials.
Delivery A fee assessed by the vendor to deliver empty container(s) in order to then perform a service.
Dry Run Trip Charge A penalty charge applied when a vendor arrives to perform a scheduled service but is unable to complete service due to circumstances outside of vendor's control (blocked container, overloaded container, locked enclosure, etc.)
Environment A surcharge assessed by the vendor to offset the cost of operating landfills, collection, transfer, and recycling operations.
Extra Pickup A fee applied when a customer requests a one-time, additional service on a container outside of its regular service schedule.
Initial Delivery A one-time charge to deliver a new container at the start of service.
Franchise Fee A fee levied by a local government to the waste vendor(s), which is passed onto waste generators. Similar to a tax.
Fuel Energy or Oil A surcharge assessed by the vendor to offset the cost of fuel, energy, or oil, exclusive of any other fuel, energy, oil, environmental, or regulatory surcharge.
Fuel Environment
A combined line item charge of Fuel, Oil, or Energy fee and Environmental fee.
Gate Access Fee A fee to offset the increased time and/or labor for a vendor to use a gate or door to perform a service.
Inactivity Charge A penalty charge applied when a container is not serviced for a pre-established number of days.
Incineration A charge applied when materials are placed into a container that cannot be disposed of at a landfill and must be taken to an incinerator.
Landfill Surcharge A surcharge assessed by either the vendor or the landfill for disposing at the landfill. This is not the same as the cost per ton to dispose of material.
Late Payment A penalty charge from the vendor for late payment of an outstanding invoice.
Minimum Tonnage A penalty charge from the vendor for not achieving a minimum weight within a container. This charge guarantees revenue minimums to the vendor.
Roll Off or Compactor Service Overage A penalty charge from the vendor for exceeding the maximum allowed weight of the container.
Recyclable Material Offset A surcharge only applied to recycling service charges, that allows vendor to achieve an acceptable operating margin despite increased recycling costs and/or declines in the value of processed recyclables in the global commodities market.
Regulatory Cost Recovery Exclusive to Waste Management. A recurring charge intended to cover a portion of Waste Management's enterprise-wide costs associated with host community fees, waste disposal taxes and similar charges paid to municipal or other governmental authorities or agencies to engage in the waste collection, transfer, processing, disposal, treatment, and/or recycling business, plus an acceptable operating margin.
Relocate A fee for the movement of a container, generally within the property.
Removal A fee for the removal of a container from the property. This is typically matched to non-Rolloff services, as rolloff services would simply be charged a "haul" rate.
Rental A recurring charge for the use of a vendor's equipment.
Repair A one-time charge for any parts/labor associated with performing repairs to equipment.
Swap A fee for the deliver and subsequent removal of a container of similar size & function.
Tax A general charge classified as a tax from a local governmental agency.
MTA Tax A charge classified as a tax from the regional metropolitan transit authority in which the service is performed.
City Tax A charge classified as a tax from the city in which the service is performed.
Sales Tax A charge classified as a tax, specifically a Sales tax, in the jurisdiction in which the service is performed.
State Tax A charge classified as a tax, specifically a State tax, in the jurisdiction in which the service is performed.
Bulk Item Removal A fee for the removal of large bulky items.
Lock Installation A one-time charge to install a container lock at the customer's request.
Lock Recurring A recurring charge to cover the maintenance costs associated with having a container lock.
Liner or Tarp A one-time charge, per lift/per container to supply a liner for a roll off container
Push Out Fee A fee for the added service of the vendor moving containers a meaningful distance in order to service them, and placing those containers back at the end of service.