Key Clauses

Key Clauses

Municipalities required to contract for recycling services during the EPR transition period must provide for the possibility that a change of law may significantly affect their program and/or the scope of work contracted. Inclusion of Change of Law, Change Management and Dispute Resolution provisions can help solve serious changes imposed on your contract or program by new legislation. Read More

This clause helps protect the parties from events outside their control. For example, the Province has now passed the Waste Free Ontario Act, 2016. Extended Producer Responsibility (EPR) is coming and programs need to be ready. Procurement documents need a robust “force majeure” (including a “change of law”) provision that protects the municipality from the cost implications of early termination. Read more

In the past, municipalities have relied on a general “non-performance cancellation” clause to remedy any breach of contract. Invoking cancellation is difficult, time consuming and likely to lead to litigation.  A liquidated damages clause is a better practice tool for day to the contract management because it permits a quick deduction of reasonable costs for minor non-performance. Read more

The price of oil is currently near historic lows and combined with cap and trade legislation, the probability of significant price fluctuations in diesel fuel and/or natural gas used to power collection fleets remains very high. Fuel price fluctuation is outside the control of your contractor and if there is no mechanism to protect them from price fluctuations, they will be forced to inflate bid prices to protect themselves over the duration of the contract. Read more

The Province has imposed a cap and trade system for carbon credits (Climate Change Mitigation and Low-carbon Economy Act, 2016, S.O. 2016, c.7) as part of its strategy to reduce greenhouse gas emissions. To potentially reduce program costs, procurement documents need clauses that retain any carbon credits generated from municipal waste management activities for the benefit of the municipality. Read more

 

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