Most property owners in the Port Macquarie-Hastings region sign AWTS service contracts or septic maintenance agreements without reading them carefully. For a document that governs a significant annual expense, carries compliance implications, and determines what happens when something goes wrong, this is a costly oversight. Here’s what to look for before you sign.
Quick answer (BLUF)
The key things to check in any septic maintenance contract are: scope of what’s actually included in each visit, what triggers extra charges, liability for component failure, termination and cancellation terms, PMHC reporting obligations, and whether the contractor is appropriately licensed and accredited. Red flags include vague scope language, automatic price escalation without notice, and contracts that disclaim any liability for system condition.
Section 1: Scope of services
The most important section. Read this very carefully because many disputes between property owners and service contractors come from differing interpretations of what “quarterly service” includes.
A good scope section will list specifically what the technician does at each visit:
- Which components are physically inspected
- Whether effluent quality is tested and how
- Whether the absorption area is visually checked
- Whether the service logbook at the property is updated
- Whether adjustments to settings (dosing timer, pump rate) are included
Watch for: Vague language like “inspect the system” without specifying what that means.
Confirm: Is the primary chamber pump-out (desludging) included or a separate charge? This is usually a separate service, confirm frequency and cost.
Section 2: What the contract does not include
Well-written contracts explicitly list exclusions. Common and reasonable exclusions:
- Major component replacement (blower, pump, UV lamp)
- Repair of the absorption area (drip lines, trenches)
- Repairs arising from damage caused by the property owner
- Works requiring PMHC approval
Watch for: Contracts that exclude so much that the annual fee covers only a single monthly visit with no actual maintenance work.
Section 3: Charges and pricing
Key elements:
- Annual or quarterly fee amount
- CPI or fixed annual escalation: Some contracts include automatic annual price increases. This is normal, just know what you’re signing up for.
- Callout charges: The fee for emergency callouts should be specified, not left open-ended.
- Parts and labour: Clarify whether quoted replacement parts are billed at retail or at contractor-negotiated pricing.
Watch for: “Price subject to change without notice” clauses. You’re entitled to know in advance what a price change is before you’re committed to paying it.
Section 4: Contract term and termination
- Minimum term: Many contracts have a 1-year or 2-year minimum term. Confirm what happens if you sell the property or wish to change contractors mid-term.
- Notice period for cancellation: Typically 30-90 days written notice.
- Property sale: Does the contract transfer to the new owner?
- Early termination fees: Some contracts impose fees if you exit within the minimum term.
Watch for: Contracts that auto-renew for another full term without explicit opt-out notice. Set a calendar reminder before the renewal date.
Section 5: PMHC reporting obligations
Your PMHC OSSM operating approval specifies reporting requirements. Check the contract states:
- Service records will be provided to you after each visit
- Records will be maintained for PMHC inspection upon request
- The provider is currently accredited under NSW Health’s AWTS service provider framework (if applicable)
Watch for: Any language that shifts the PMHC reporting obligation entirely to you.
Section 6: Liability and indemnity
Key questions:
- What is the contractor’s liability if their servicing is negligent and the system fails?
- What happens if the system causes property damage (e.g., overflow damages your garden or a neighbouring property)?
- Does the contract indemnify the contractor from consequential losses? This is usually reasonable.
Watch for: Blanket disclaimers that the contractor “makes no warranty regarding system performance.” This is too broad, a licensed contractor should warrant that their service work is competent.
Section 7: Dispute resolution
Good contracts specify a process: first, try to resolve the dispute directly; then, mediation; then, tribunal if needed. NSW Civil and Administrative Tribunal (NCAT) handles consumer service disputes.
A checklist before signing
- Scope is clearly defined with specific component-level checks listed
- Exclusions are explicitly listed
- Callout fees and parts pricing are specified
- Contract term and notice periods are clear
- Contractor is licensed (NSW Plumbing/Drainage Licence) and accredited (NSW Health AWTS accreditation if AWTS)
- Service records will be provided to you after each visit
- Price escalation mechanism is understood
- You’ve confirmed the contractor services your specific area
FAQs
Is a verbal service agreement acceptable for PMHC compliance purposes?
No. PMHC requires a formal documented service contract as a condition of AWTS operating approvals. Verbal agreements don’t satisfy this requirement.
Can I switch service contractors during an active contract?
You can, but check your termination provisions and any minimum term penalty first. The transition needs to be seamless (no gap in quarterly service).
My contractor never gives me a written service record after each visit. Is this normal?
It’s unfortunately common with less rigorous operators, but it’s not acceptable. Your approval conditions require service records to be kept, and you are entitled to a copy after each visit.
What if the contractor identifies a problem during a service visit that needs repair?
A good contractor will document the fault, describe the recommended repair, provide a quote, and note whether it’s urgent or non-urgent. If the repair requires PMHC approval (any modification to the system), the contractor should flag this. Watch for contractors who proceed with unapproved modifications without telling you.