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Salt Supply Disruptions and Your Contract Obligations

Many snow contracts assume the salt will be there. Usually it is. But supply can tighten during heavy winters or supply disruptions, and when it does, the contract you signed in September decides what you owe your client in February.

This post looks at a real disruption, then at the contract clauses that deal with shortages and how they connect to your liability exposure.

General information only, not legal advice. Have a lawyer review contract language for your specific situation.

A Real Example: The 2018 Goderich Strike

In 2018, more than 350 workers at the salt mine in Goderich, Ontario went on strike (Unifor Local 16-0 against owner Compass Minerals). The strike ended in July 2018 after 12 weeks. We have not confirmed from a news source what effect it had on salt supply or prices that winter, but it shows how a single event at one site can put a supply chain under pressure.

The Snow and Ice Management Association (SIMA) says salt supply disruption is "increasingly plausible given supply chain disruptions, extreme weather cycles and regional shortages," and advises contractors to address shortages in their contracts.

Why It Matters for Liability

A salt shortage does not pause the weather, and it does not pause the duties of the people who control a property. Courts have held occupiers liable where they "could have cleared the ice, salted or sanded a pathway" (Waldick v. Malcolm, as summarized by Northern Law). If your contract promises a service level you cannot deliver, the gap can show up later in a slip and fall claim or a contract dispute. See slip and fall liability.

Contract Clauses Worth Reviewing

Force Majeure

A force majeure clause excuses or suspends performance when events outside a party's control prevent it. Whether a clause covers a material shortage depends on its exact words. Some list shortages or supplier failures specifically; others do not. Read yours before the season.

Material Shortage and Substitution

Some contracts spell out what happens if salt is unavailable or rationed: whether you may use alternative materials, reduce application on low priority areas, or prioritize entrances and walkways. Written priorities agreed with the client in advance are easier to defend than decisions made mid storm.

Price Escalation

Seasonal contracts in particular can leave the contractor carrying the cost of a mid season price spike. A clause that allows material price adjustments, or bills materials separately, shifts that risk. See per push vs seasonal contracts and how to price snow removal contracts.

Communication and Notice

A clause requiring you to tell the client promptly, in writing, when supply is affected gives both sides a record and a chance to adjust. Property managers generally prefer a heads up to a surprise.

Indemnity

Check how your indemnity clause and any hold harmless agreement read if you cannot perform. Broad wording can leave you responsible for claims even where the shortage was not your fault. A broker can explain how your insurance may respond to contractual liability.

Documentation When Supply Is Short

If you are rationing, write it down:

  • Dated records of orders, deliveries and supplier notices.
  • What was applied, where and when, in your snow logs.
  • Copies of every message to clients about reduced service.

These records show what you did and why. See site logs and documentation.

Plan Before the Season

  • Confirm supply arrangements and storage capacity early.
  • Ask clients to agree on priority areas in writing.
  • Look at training in salt management. The Smart About Salt Council's contractor course covers calibration and business risk management. See Smart About Salt certification.
  • Review your contract language with a lawyer and your insurance with a broker. See snow removal contracts and insurance.

Sources

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Frequently Asked Questions

Does a salt shortage excuse a snow contractor from its contract?

Only if the contract says so. It depends on the wording of any force majeure or material shortage clause, so have a lawyer review yours.

Was there a salt shortage in 2018?

A 12 week strike at the Goderich, Ontario salt mine ended in July 2018. We have not confirmed its effect on salt supply or prices.

What should I do if I have to ration salt?

Tell your clients in writing, apply agreed priorities, and log what you applied, where and when.