Pay per visit gritting could save you money this winter

It’s a question we’re all familiar with – especially when it comes to mobile phone contracts or energy bills – which is better: a fixed contract or pay-as-you-go?

Many of our winter maintenance clients in the facilities management and managing agents sector face a similar dilemma when deciding how to structure their contracts ahead of the coming winter. 

Our Winter Group Commercial and Winter Director Marcus Wood, discusses the advantages of fixed-price and pay-per-visit contracts and the need to be agile in uncertain financial and physical climates.

Fixed winter maintenance contracts

With a multi-year, fixed-price winter maintenance contract, the service is delivered as required by the weather forecast.  As a customer, there is no need to be concerned if you can afford a visit, which is sometimes a concern in borderline weather conditions. What fixed contract clients get is the peace of mind that, no matter how bad the weather gets, they are covered. And they don’t need to worry about whether or not to pay for an extra visit or monitor the weather forecasts, because we take on that responsibility as part of the fixed contract.

Fixed-price packages pay dividends over the length of the contract when a hard winter strikes. So, if your facilities are based in a location where snow and frost are a regular occurrence during the winter months, a fixed contract could be the preferred option. 

We understand that many facilities managers and managing agents value certainty, particularly in current climates of uncertainty. This is especially the case for multi-facility operators whose tenants desire a predictable cost and where operators need to be able to guarantee facilities are safe in winter. In these circumstances, entering into a multi-year fixed contract is a wise decision.

Pay per-visit winter gritting services

At locations prone to less eventful conditions, a pay-as-you-go service is often a preferred option. It means a customer is not tied to a level of spending that, should winter be mild, the costs are perceived to be greater than if they had paid per visit.

According to the Met Office Seasonal Assessment, the UK 2023/24 winter season was the fifth warmest on record with the warmest Christmas day since records began. With 2021/22 and 2022/23 also bringing relatively mild winters and all the discussion of climate change, the uncertainty of fixing your costs while wondering ‘will it be cold’ is understandable.

As part of their budgeting process, property managers have a provision and set their winter maintenance in advance of an upcoming season. If they are on a pay-as-you-go contract and there is another mild winter, they may spend less than that provision, meaning more money is available for other services or even reconciliations at the end of the service charge year. That appears to show they are managing the service charge well. 

Ground Control uses automated technology to assess when gritting and snow clearance are required, just like in our fixed contracts. When a cold weather threshold is met, our local gritting teams are automatically sent
out, with no callout required. Customers are then charged per visit, so if there is no frost, there’s no cost. This means that, in a milder winter, with a lower number of callouts, clients on Pay-Per-Visit will benefit from a lower overall cost than a fixed contract but still receive the same level of protection.

First frost covered for free

Sign up before 31st August 2024 and we will cover the cost of the first call-out for all new pay-per-visit winter maintenance customers.

Conclusion

As a facilities manager or managing agent, deciding whether to fix your winter maintenance costs could be one of the most important budgeting decisions you make this year. We understand that signing up for a winter maintenance service now may feel premature and unnecessary if the trend of warm, wet winters continues.  This is where taking advantage of our agile approach to winter services now, may help save you money and take the pressure off when the 2024/25 season begins.