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§ 10 of 15

Weights, tickets and audit

The weights clause decides whose scale sets the paid weight, which ton is used (2,000, 2,200 or 2,240 lb), what ticket you receive, and your right to check the buyer’s records. Your rebate is weight times price, so this clause carries as much money as the formula.

Updated · Not legal advice

10.1

Which ton does the contract use?

A short ton is 2,000 lb, the unit of the main US OCC index. A long or gross ton is 2,240 lb. Some public bid sheets also define a gross ton as 2,200 lb: Steuben County, NY's 2020 recyclables bid notes "Gross ton = 2,200 lbs." Paying a short-ton price per 2,240 lb ton cuts your rebate by about 11%. The calculator lets you switch the ton definition and see the effect.

10.2

Whose scale counts?

Usually the buyer's receiving scale. Scales used in trade are regulated by state weights and measures programs, most of which adopt NIST Handbook 44. Ask for a scale ticket for every load showing gross, tare and net weight, the date, and your load or trailer number. If you have your own scale, agree what happens when the two differ by more than a set tolerance.

10.3

What records should the statement include?

New York's statewide recycling contract sets a good standard: invoices for revenue-sharing lots must carry documentation of the actual weight recycled, the price per ton and total revenue, and the revenue share paid or credited, such as a bill of sale. Ask for the same, plus a right to audit the buyer's records for your material once a year.

10.4

Sample wording

Illustrative wording to adapt. Brackets are choices to make.

10.1 Weight. Net weight shall be determined on Buyer’s certified scale. Buyer shall provide a scale ticket for each load showing gross, tare and net weight, date and Seller’s load number. "Ton" means 2,000 lb.

10.2 Statement. Each monthly statement shall list every load with its ticket number, net weight, deductions and price, and the Index Price used.

10.3 Audit. On [15] days’ notice, Seller may inspect Buyer’s records relating to Seller’s Material once in each contract year.

10.5

What to negotiate

  • Define the ton in the contract, and make it the same ton the index uses.
  • Ask for a ticket per load, not a monthly total.
  • Get an audit right for your own loads.

Red flags in a draft

  • A monthly weight total with no tickets.
  • "Ton" undefined, or a gross ton paired with a short-ton index.

Switch the ton to 2,240 lb →

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Questions

What is a short ton?
2,000 lb, the unit of the main US OCC index. A long or gross ton is 2,240 lb, and some contracts define a gross ton as 2,200 lb.
Who weighs the load?
Usually the buyer’s scale. The contract should require a scale ticket for each load and let you audit the records.

Sources

  1. RFP PW-21-005-P, Marketing of Recyclable Materials and Scrap Metal: bid tabulation, Steuben County, New York, bid date November 12, 2020.
  2. Group 79013, Award 22760, Recycling and Trash Removal Services: FAQ, New York State Office of General Services, revised March 19, 2018.
  3. NIST Handbook 44, current edition, National Institute of Standards and Technology.
  4. North America Recovered Paper: methodology and price specifications, Fastmarkets RISI, October 2024.