SnowPlowInsurance.ca
  1. Home
  2. Resources
  3. Guides
  4. How to Price Snow Contracts

How to Price Snow Removal Contracts

Pricing a snow contract is part estimating, part weather bet and part risk management. Price without reading the contract and you may find that the insurance, salt and records it demands cost more than you planned.

This guide explains the pricing models contractors commonly use, the cost inputs that go into a number, and how contract terms and insurance requirements change what a job really costs. We do not publish market rates. Prices vary by region, site, equipment and service level, and a printed figure would be wrong for most readers.

General information only, not accounting, legal or insurance advice.

The Common Pricing Models

The Snow and Ice Management Association (SIMA) lists "per-inch, per-push, time and material, or a combination thereof" as pricing models for snow contracts. In practice you will see these structures:

Per Push or Per Occurrence

The client pays each time crews service the site. The contract sets a trigger depth, which SIMA defines as "the agreed upon measurable amount of accumulated snow or ice wherein snow and ice management services will be dispatched." Revenue rises in a heavy winter and falls in a light one. See per push vs seasonal contracts.

Per Event

The client pays for each snow event that reaches the trigger, however many passes it takes, with no charge in dry periods. Defining what counts as one event matters a great deal here.

Seasonal

A fixed price for the whole season regardless of how many storms arrive. The client gets a predictable budget. You carry the weather risk: a big winter means more work for the same money.

Per Inch, Hourly or Time and Materials

Billing tied to snowfall depth, hours worked or equipment time plus materials used. These models pass more weather risk to the client and put more weight on your records.

Combinations

Many contracts blend models, for example a seasonal price for plowing with salt billed per application. Whatever the mix, write down exactly what triggers each charge.

Cost Inputs to Build Into Every Price

Whatever model you use, the price has to cover the same underlying costs:

  • Labour: wages, overtime, on call time and the long hours of a multi day storm. If you have workers, include provincial workers compensation premiums. See workers compensation for snow removal.
  • Equipment: ownership or lease payments, depreciation, repairs, blades, cutting edges and backup units for breakdowns.
  • Fuel: for trucks, loaders and sidewalk units, including idle time.
  • Materials: salt, sand and liquids, plus storage. Material costs can move during a season.
  • Insurance: general liability, plow truck insurance, equipment coverage and any umbrella a contract requires.
  • Subcontractors: their rates and the time you spend checking their paperwork. See hiring subcontractors safely.
  • Overhead: dispatch, weather monitoring, software, office costs and any municipal licence. Ottawa, for example, requires an annual snow plow contractor licence.
  • Site specific work: hand shovelling, sidewalks, stairs, snow storage limits and any hauling.
  • Margin: the profit and contingency that pays for a bad winter or a broken truck.

Walk the Site Before You Quote

A site visit catches the things that turn a good price into a loss: curbs and islands hidden under snow, limited space for piles, heavy foot traffic, loading docks and service hours. Photograph existing damage before the season starts. See site logs and documentation.

How Contract Terms Change Your Cost

Two contracts for the same lot can carry very different costs because of what the paperwork says.

  • Service level. A contract that expects a site kept clear throughout a storm costs more to service than one with a trigger depth. See zero tolerance contracts.
  • Insurance limits. Public tenders we reviewed ranged from $2,000,000 in general liability per occurrence (a Bruce Grey Catholic District School Board template) to $5,000,000 per occurrence (the Township of Otonabee-South Monaghan), and the Town of Slave Lake asked for $5,000,000 in general liability. A higher required limit can mean adding an umbrella policy. Send the insurance section to a broker before you bid.
  • Endorsements. Additional insured status, primary wording and notice of cancellation clauses may need changes to your policy.
  • Indemnity clauses. Promising to cover the owner's own liability shifts risk to you. See snow removal contracts and insurance.
  • Salt supply. SIMA says salt supply disruption is "increasingly plausible" and advises contract clauses for shortages. A shortage or price escalation clause protects a seasonal price. As one example of supply risk, the 2018 strike at the Goderich, Ontario salt mine lasted 12 weeks.

Taxes

Sales tax does not change your cost, but it changes what you invoice. Federally, registering for GST/HST is optional until your taxable sales pass $30,000 over four consecutive calendar quarters. In Saskatchewan, snow clearing and snow removal services are listed as taxable services under the PST Regulations (PST is 6%). In British Columbia, a provincial bulletin says services to real property are generally not subject to PST, though it does not name snow removal. Confirm your situation with an accountant.

Pricing Mistakes That Become Insurance Problems

  1. Winning on price by skipping salt or logs. Those are often your best defence in a slip and fall claim.
  2. Signing a contract whose insurance requirements you do not meet. Check before you sign, not when the certificate is requested.
  3. Using uninsured subcontractors to hit a number. Their claims can land on you.
  4. Adding services without telling your broker. New salting, sidewalk or roof work should be disclosed. For the insurance side of your costs, see how much snow plow insurance costs, or get matched with a broker who can quote your operation before bid season.

SnowPlowInsurance.ca is an independent referral service, not an insurance company or broker. We connect you with licensed brokers who provide quotes and advice. How this site works.

Sources

Frequently Asked Questions

What is the most common way to price snow removal?

Per push, per event, seasonal, per inch and time and materials are all common, and many contracts combine them. The right model depends on the site, the client and how much weather risk each side wants to carry.

Should insurance costs be included in my snow removal price?

Insurance is a real operating cost, like fuel and labour, so contractors usually build it into their pricing. Contracts that require higher limits or special endorsements can raise that cost.

Can I get a list of market prices for snow removal?

We do not publish prices because they vary widely by region, site and service level. Local experience, site visits and your own cost records are the best basis for a price.

How do contract insurance requirements affect my bid?

A contract may require higher limits, additional insured status or other endorsements. Sending the insurance section to a broker before you bid lets you price those costs in.