Billing Conventions For Transport Contracts

In the general panorama of the service industry, transport contracts are one of the areas where the possibilities and range of contracts available seems to be quite wide. Other than for the major corporate retailers and organizations, this field allows for a high degree of flexibility in terms of how agreements are struck, carried out and honoured.

The question of billing, in particular, can be carried out in a number of different ways, depending on the nature of the agreement. Below are the most common types of billing conventions drivers carrying out transport contracts are likely to come across.

Carrier’s Bill Of Lading

A carrier’s bill of lading is probably the most common type of invoicing option a haulier or man-and-van operator will come across when completing a job for a company. This is a document issued by the carrier themselves, and which serves as proof that the contract was agreed upon and undertaken. This document is then signed by the driver, officialising the agreement.

An important fact to bear in mind where carrier’s bills are concerned is that while they help formalise the agreement, they by no means serve as a law unto themselves. More often than not, this type of document will be linked to another, larger contract, of which it is but one of the parts. Still, for the purposes of invoicing, the carrier’s bill is what will serve as proof of service, ensuring the driver gets his or her pay.

Carrier’s bills of lading are often subjected to numerous clauses, terms and conditions, and are rather vulnerable to change. Still, despite these shortcomings, they remain – as noted above – the most common type of billing option where transport contracts are concerned.

Pricing Agreements

The second type of payment and invoicing option carriers working transport contracts are likely to come across are so-called pricing agreements. These are significantly less complex than carrier’s bills, and basically consist of two or three page documents that detail the agreement reached between carrier and client with regards to rates and pricing for individual jobs. In layman’s terms, these documents establish the ongoing rate for any agreement carried out between that specific provider and that specific client going forward. This helps sets drivers’ minds at ease by guaranteeing them a minimum rate when carrying out services for that client, and also prevents the client from having to renegotiate the rates for each new deal.

Individual Agreements

Individual agreements are the third and final type of invoicing and billing convention common in the field of haulage and transportation. As the name indicates, this is a standard agreement, valid for one instance of service provision. This is the most straightforward type of deal, and its only downside is that it must be renegotiated for every further instance of service.

Any of these three forms of contracting, billing and invoicing is likely to be used when taking on haulage jobs, so it is important that drivers know the particularities each of them entails.

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