Common Mistakes Businesses Make With Water Contracts

Even experienced finance directors and operations managers make mistakes when it comes to water contracts. Overlooking details, misreading terms, or assuming costs are fixed can result in overpaying, missed opportunities, or compliance issues. This guide highlights the most common pitfalls and how to avoid them.

Mistake 1: Not Reviewing Bills Regularly

Many companies pay the same bill for years without checking for errors. Common issues include incorrect meter readings, duplicate charges, or misapplied tariffs. Regular review can reveal mistakes that save thousands.

Mistake 2: Ignoring Contract Terms

Contracts often contain terms that affect costs, notice periods, and service levels. Ignoring them can lead to penalties, unexpected charges, or missed opportunities to renegotiate better terms.

Mistake 3: Assuming All Suppliers Are the Same

Each licensed provider has different tariffs, services, and levels of support. Choosing purely based on price or habit often misses opportunities for better service, efficiency support, or tailored billing.

Mistake 4: Overlooking Water Efficiency

Many businesses focus solely on tariffs and ignore usage. Water audits, leak detection, and efficiency projects can reduce consumption and save money in ways tariffs alone cannot.

Mistake 5: Delaying Supplier Review

The market changes over time. Delaying a review by even a year can cost significant sums. Regular reviews ensure you capture new tariff options and avoid overpaying.

Mistake 6: Poor Record Keeping

Failing to keep accurate records of bills, meters, and previous contracts can create confusion when negotiating or switching suppliers. Proper documentation is essential.

Mistake 7: Ignoring Trade Effluent Charges

Trade effluent can add significantly to bills if not monitored carefully. Many businesses miss errors or opportunities to reduce discharge costs by not tracking volumes or composition accurately.

Next Steps

Review your water contracts today. Check bills, read the terms, and compare suppliers. Avoid these common mistakes, and your business will benefit from lower costs, improved clarity, and better supplier service.