Business Courier Contracts — What to Include

Regular courier needs? A well-structured service contract protects both sides and keeps deliveries predictable. This guide covers the key clauses every UK business should include to control cost, service levels, and risk.

1. Service Scope

Define exactly what is covered: parcel sizes, pallet limits, geographic areas, and special services such as refrigerated or same-day delivery.

2. Pricing & Surcharges

  • Base rate per mile or per job
  • Fuel surcharge formula or trigger price
  • Out-of-hours or weekend premium rates
  • Waiting-time charges for slow loading/unloading

3. Service Level Agreement (SLA)

  • Pickup and delivery time windows
  • On-time percentage target (e.g. 98% within agreed window)
  • Compensation or credits for missed targets

4. Liability & Insurance

  • Goods-in-transit cover amount per consignment
  • Exclusions (fragile, high-value, or prohibited goods)
  • Process for filing damage or loss claims

5. Proof of Delivery (POD)

  • Required POD format—e-signature, GPS stamp, or photo
  • Data retention period and access rights
  • API or dashboard for real-time status updates

6. Data Protection & GDPR

Ensure the courier complies with UK GDPR when handling customer addresses, phone numbers, and payment details. Include clauses on encryption and breach reporting.

7. Term, Renewal & Exit

  • Initial contract length and automatic renewal terms
  • Notice period for termination or rate renegotiation
  • Exit process for handover of account data and labels

8. Performance Metrics

  • On-time percentage
  • Damage or loss rate
  • Customer feedback or NPS score

Set quarterly review meetings to track metrics and implement improvements.

9. Flexibility & Scaling

Include provisions for sudden volume spikes—holiday peaks, product launches, or unexpected demand—to guarantee vehicle and driver availability.

Mini FAQ

Who provides insurance? Most couriers include basic cover but high-value goods may require top-up policies.

Can rates be renegotiated mid-term? Yes—include a fuel price or CPI review clause.

What about international deliveries? Add Incoterms, customs brokerage, and export compliance responsibilities.

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