Why a Contract? What Should I Look for in a Contract? Are Contracts Required?

May 15th, 2017

Contracts.  Many people flinch at the mention of a contract.  However, there are some simple guidelines on what to look for, what to be afraid of and, of course, if you should have one.

Things to consider when you are thinking about signing a new contract or reviewing an existing contract include:  How long are your terms?  Are there automatic rate increases?  Does this lock in your pricing?  And last but not least, does the contract specify on-site mobile destruction or off-site plant-based destruction, or does it say the vendor can provide service however they choose?

The pros of having a contract in place should always outweigh the cons.  Finding a provider that has a hassle-free contract and your company’s best interest in mind is key.  Contracts can protect your organization in the event of an audit.  With a contract in place, you have the ability to prove you have an agreement with a NAID (National Association for Information Destruction) certified vendor as a third party destroyer of your confidential material.  You are taking the risk and liability out of your employee’s hands.

When it comes to pricing, a contract can protect your bottom line and help you with your budget planning.  Contracts should be written to guarantee pricing for an agreed upon length of time, not to give a vendor the option to raise your rates arbitrarily.  Additional pricing structures that many forget about are ancillary charges.  Including these in a contract can help identify up-front cost or, in some cases, even help eliminate the cost of things such as delivery charges, removal charges and much more.

Remember, contracts are agreements with specific, well laid out terms which you enter into for services to be provided in exchange for benefits known as consideration.  They should not be intimidating or confusing.  Always take the time to understand the agreement you are getting into.  Some companies only have themselves in mind.  Others will be there to help and guide you.  If you are currently under contract with a confidential destruction provider contact Shred Right for a free analysis of your agreement.  We’ll help you find hidden costs and identify ways you can increase security and potentially reduce expenses.

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Shred Right is AAA NAID Certified, often exceeding the rigorous standards established by the NAID quality certification program.

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