What is the maximum duration for solid waste collection contracts?

Solid waste collection contracts generally have a maximum duration of five years in New Jersey. This time frame is structured to ensure that municipalities maintain flexibility in their waste management practices and can adjust contracts as needed based on changing needs, technological advancements, or shifts in legislation.

Long-term contracts, like the five-year duration, allow municipalities to secure stable service at predictable costs while also providing opportunities for re-evaluation and competition at the end of the contract term. Such a period typically strikes a balance between providing sufficient time for the contractor to recoup their investment and allowing the municipality to reassess their waste management strategies periodically.

While shorter contract durations may limit risk but can lead to frequent re-evaluations, longer durations such as ten years may create challenges in addressing future needs or innovations in waste management solutions. Therefore, a five-year term is often preferred as it promotes balance, stability, and adaptability in solid waste management contracting.