Moving beyond price per collection
Historically, waste services are bought on a "lowest-cost" basis. Number of collections. Container rates. Basic compliance. That works if your only goal is simple removal. But smart businesses are asking a different question. What is the actual outcome we want?
WHY SMART BUSINESSES ARE RETHINKING THEIR WASTE CONTRACTS
Waste is the residue of how work gets done. It’s regulated, it’s expensive, and it has to go. But because it feels like a chore, most businesses treat waste management like office stationery: put it to tender, pick the cheapest rate, sign the contract, and forget about it.
The problem? Most of these contracts are designed to optimise price, not performance. Over time, they quietly reward activity over outcomes and entrench the very inefficiencies you’re trying to eliminate. They don't achieve sustainability; they just manage the status quo.
A waste contract isn't a static procurement exercise. It’s an operational tool. When it’s designed around outcomes rather than just collections, it becomes a lever for performance.
Moving beyond price per collection
Historically, waste services are bought on a "lowest-cost" basis. Number of collections. Container rates. Basic compliance. That works if your only goal is simple removal. But smart businesses are asking a different question. What is the actual outcome we want?
If your goals are:
- Reducing total waste costs over time.
- Improving diversion from landfill.
- Verifiable, "audit-ready" reporting.
- Tangible progress toward Zero Waste to Landfill (ZWTL).
Then the contract must be built around those results, not just how many times a truck clears the yard.
Aligning incentives
If a service provider is paid per collection or per tonne, their commercial incentive is simple, keep moving volume.
With this type of contract:
- Volume generates revenue.
- Efficiency requires extra effort.
- Waste reduction reduces their profit.
There is zero built-in motivation for them to help you optimise. Smarter contracts flip the script.
They align incentives to reward:
- Accurate with credible data.
- Right-sizing bins and collections.
- Improved separation at source
- Receiving rebates for recycling.
When the incentives align, the provider stops being a vendor and starts being a partner.
From passive service delivery to proactive partnership
Operations expand, waste streams shift, and regulations tighten. Static contracts don't keep up. When your contract makes it difficult to adjust service levels or redesign processes, you’ve essentially built-in resistance to change.
Forward-thinking businesses are moving toward active contract management.
This means:
- Tracking trends in cost and diversion.
- Pivoting processes the moment the data shows a slide.
- Proactively managing risks
- Identifying new solutions as technology evolves
ZWTL is a process, not a checkbox
Many contracts list "Zero Waste to Landfill" as a target. But ZWTL isn't a destination you arrive at via a logistics contract.
ZWTL is a change management process.
- Shifting employee behaviour through training.
- Constant performance auditing.
- Investing in alternative waste-to-energy or composting solutions.
- Redesigning operational and/or waste management systems when necessary.
In short, ZWTL depends on a strategic partnership, not just not just logistics.
Changing the conversation
A waste management contract is an operational framework. It dictates your cost control, your compliance risk, and your sustainability credibility.
Rethinking your contract doesn't mean adding complexity. It means adding flexibility and accountability. Waste will always need to be managed, but "removal" is the bare minimum. The real goal is a contract that improves how your business operates over time.
That improvement doesn’t start at the bins. It starts at the desk where the contract is signed.
Book your free waste audit and start saving today.
