TPD Thanks.
Curious.
How do the contracts work?
Do you only get paid when you have to go out?
Do you still get paid if we have no smow during the winter?
The snow removal contracts for the county (and I think that state is similar) give contractors a retainer fee for each piece of equipment provided. This fee is paid upon inspection of the equipment at the beginning of the season, provided equipment meets standards set forth in the contract. We are on call 24hrs a day and must be ready to go plow within 1 hour of being called out. Most, if not all contractors, use their equipment for other things - dump trucks, farm tractors, pickups, etc which means we could put on and take off plows numerous times throughout the winter, since it is not feasible to always have these plows hanging off the front of your truck/tractor. It can take 15 minutes to 1 hour to put on plows. And you may not get called out, but still must be ready. It is hard to plan winter vacations in advance, not knowing when it will snow but know you have a contract to fulfill. For me personally, I am not comfortable putting just anyone in my tractors to plow snow.
At the end of the season, if you performed your duties properly i.e. arrived within the hour of call, minimal equipment malfunctions, etc we receive another small fee. The total stipend is less than $1000 per year per piece of equipment, whether you get called to plow or now.
And lastly, contractors are required to have a certain amount of liability insurance to cover their operation. This will be a rider on most policies, which is an additional premium. The contract does give us a fixed stipend for this additional insurance. Some years it will cover my additional insurance, other years it doesn't. Not all insurance companies want to cover a $50-100,000 piece of equipment that is out in the worst of weather conditions. Too much exposure they say. Go figure.
When we have been called out, each piece of equipment is paid an hourly rate. The contractor then must pay his employees(mine get $15-25/hr), fuel($10+ per hour depending on how deep the snow is), repair costs(see below) out of this hourly rate. Hourly rates start at $100 and go up.
Some years we do ok, other years not so much. When a farm tractor or dump truck breaks in 20 degree weather with a 2000lb snowplow, it is usually not cheap. About 8 years ago, it cost me $6,000 to replace the front wheel hub of one of my 4wheel drive tractors. Last night, we saw a hydraulic leak on one of the plows. Will inspect tomorrow but guess a cylinder gone bad at a cost of $400 plus. Manhole covers are the worst when you hit those things at 10-15mph. Hit one last night that shook the hell out of me and caused the toolbox mounted on the side of the tractor to pop open and wrenches go flying across the road. Last week's manhole cover caused the plow frame to split requiring a parking lot welding job.
Overall I've been satisfied with the contracting. There are some nights I don't want to get out of bed at 2am when called, but I do it for my forum peeps!!
Hope that answers your questions.