Defining a Moving Company Contract Agreement
A moving company contract agreement is a legally binding agreement prepared by a business that provides a detailed outline of the services the moving company will be performing for the customer. This contract is imperative to protecting both the customer and the moving company itself as it details the obligations and rights of each party before, during, and after the sale is made and the services are performed . It is often recommended to the customer to have their attorney review the contract before signing to make sure it is both fair towards them and legally binding so that if any disputes arise concerning the contract after it is signed, there will be a formal agreement that can be used in a court of law if necessary.
Main Elements of a Moving Contract
When you are choosing between moving companies, you need to know that each competitor might present you with a different kind of contract. The more detail that is included in the contract, the better the deal will be for you. The contract should specifically outline all of your rights and responsibilities, as well as all costs involved in your move. A well-stated contract should clearly outline the services that the moving company will provide, the timeframe in which your move will occur, the days and hours during which moving employees will work, and the specific costs associated with each part of your move.
Most importantly, your moving company contract should always list insurance options. You are protected by some insurance even if your moving company does not offer any. State and federal law dictate minimum requirements when it comes to insurance and cost recovery for damages caused to your property during a move. Most of these rules and regulations only apply to moves over a set distance based on the type of truck actually used. It is very possible that your rental truck moving company can rent the truck to you under the legal driver license requirements, without having to follow strict government regulations. When this happens, you will not have very good basic coverage at all during your move. A well drafted contract should lay out the state and local insurance rules and regulations that will apply to your move.
Importance of a Contract Before a Move
A contract is a written agreement between you and your moving service, so it’s worth its weight in gold. Although most moves go without a hitch, things can go wrong for many reasons, like bad weather, or road congestion, and it’s always good to have a formal agreement to go back to that shows the service you’re getting and when it’s supposed to happen.
Most importantly, the written contract protects your legal rights in the event things don’t go as planned or the moving service doesn’t perform as promised. A contract also clearly lists your specific objectives for you and the moving service to follow.
Common Terms in a Moving Contract
Inevitably, every moving company contract will contain certain clauses that are specific to the type of service purchased. Below is a list of frequent clauses sought by moving companies and/or their customers.
Liability Provisions: Liability provisions are provisions that outline the extent to which and/or circumstances under which a moving company will be liable for damages. Such provisions often limit liability based upon the value of goods or conditions on which the damage occurred. Consideration should be given to both the potential limits on recovery as well as the potential liability against the moving company.
Cancellation Terms: Cancellation terms are terms specifying the time period prior to a move that notice be given to the moving company and any potential consequences for the failure to give such notice. In addition, cancellation clauses frequently provide that there may be certain charges incurred by the moving company where an order is canceled at the last minute or after commencement of the move.
Payment Terms: Payment terms are terms specifying the total costs for the move, payment schedules during the move, the forms of payment the moving company will accept and the types of charges that may be added if payment is not made in accordance with the specified payment terms.
Dispute Resolution: Dispute resolution provisions are clauses that outline the procedure for resolving disputes that may arise under the moving company contract. Such provisions may require binding arbitration of disputes or arbitration by another entity or entity type selected by the parties.
Warning Signs of a Problematic Moving Contract
Moving companies are trusted with some of your most valuable property – your personal belongings. Therefore, it’s paramount that you read your moving company contract agreement carefully to ensure you are protected. Here are seven red flags to look for in a moving contract:
- Vague terms. The contract should clearly state services that will be provided – packing, moving, unpacking, and a break-down of the cost. If the terms aren’t clearly stated, you could face surprises on moving day.
- Hidden fees. You could encounter stumbling blocks during your move that were not anticipated. A good contract agreement will discuss how your moving company will handle these issues. If you see details in the agreement about additional charges for things like escalators, parking meters, tolls or long walks with heavy boxes, beware!
- Unlicensed and Uninsured movers. Some carriers advertise services at a cost so low that you get that sinking feeling that something is not right about the deal . Always check your company’s license number, which should be included in the agreement.
- Price changes. This should go without saying, but be very suspicious if your mover changes the price suddenly. Your contract agreement should explicitly state that all costs must be agreed upon by both parties ahead of time and that costs can only increase in the event information is withheld from the company.
- No deadlines. A moving contract should include a guaranteed delivery date. If deadlines are not included, you could be left in the dark if the company misses the date.
- Terms and conditions addition. A mover should not change the terms of the agreement after you sign off. Be on alert if you are asked to sign a new contract or rider.
- No discussion of incidents. A good contract agreement will discuss how moving company will handle any incidents, from breaking a mover’s tool, to damage caused by your pet.
Negotiating a Better Contract
Because the terms in most moving company contracts are negotiable, you may be able to adjust them to better suit your needs. Again, it typically works to your advantage when you have several options to choose among. A broker can help identify information so that you can find the best deal for your needs, and they can help change any standard terms in your contract to better serve you. Possible contract negotiation items may include discounts, time for moving, the number of extra services included, and more.
Even if you are using a moving company with standard contract terms, there is no need to sign a contract that does not meet your needs. A residential mover has a right to refuse business to anyone, and you have a right to refuse service from any company you wish.
Depending on what type of moving company you choose, you may choose to accept an offer without a contract. However, if you are in a position to negotiate with one or more companies, ask for time to read all of their policies before signing.
Try to compare more than base rates. Different companies have different base rates, so don’t be fooled by the companies that have the lowest base rates. Always determine all fees and costs, including late fees, fuel charges, and contract languages that could cost you. With varying fees, contracts, and movements costs, finding the best deal is not simply a matter of base cost.
As a rule of thumb, always trust your gut instinct when you do make a deal. If you trust the moving company, you can almost always trust the offer.
Steps to Take After Signing a Moving Contract
Within 24 hours of signing a contract to move the first step you should take is to verify your moving dates. You may have signed a contract to move, but that does not guarantee that the moving company will be able to perform your move on your desired moving date. It is important that the moving company be able to confirm the date of your move in order to eliminate any confusion on the moving day. The next steps after signing a contract is to read the bill of lading and moving contract. You should understand your rights under the Federal Motor Carrier Safety Consolidation Act of 1980, and also read any terms and conditions that an interstate moving company is required by law to provide to you before place prior to pickup day. Make sure that your contact information is correct, it is a good idea to either have someone available to answer questions or have your cell phone number on it so if there are any questions any issues they can contact you directly . If there are any special instructions regarding special handling of any items or service requested be sure to review the contract and confirm that the moving company will be providing those services you requested, so that there are no surprises on moving day. If you have any special needs they should be listed on the contract to verify that the moving company is fully aware of your situation. It is always a good idea to reconfirm your details a few days before loading date. On the loading day be sure to be present and verify that all of your belongings have been loaded and that you do an inventory of your belongings when the moving company leaves. Be sure that your contact information is correct so that the moving company is able to contact you during the move in case of any concerns or questions. Understand that when an interstate move occurs the moving company will normally be required to make deliveries up to 21 days after the pick up date, although most movers will provide a more specific delivery window. Always confirm that time frame with the moving company prior to signing.