This guide is for companies buying transport. Car owners: we run our own fleet and are not adding cars from owners at the moment (why).
Quick answer
To renew a transport contract well, review the year's data (trips, delays, backups, complaints, cost per site) before the renewal date, decide whether to renew, renegotiate or retender, update routes and vehicles to today's headcount, agree the rates for the new term, and write any missing terms (SLA, reports, backup plan, notice) into the new contract.
Chapter 01
What should you review before renewal?
The service (on-time trips, missed trips, backups, complaints), the cost (by site and per rider), the routes (still right for today's headcount) and the contract gaps.
- Service: twelve months of scorecards, or trip history and logs if you had none.
- Cost: monthly invoices split by site, extras such as tolls and night charges, and cost per rider.
- Routes: seat occupancy and towns, compared with today's workforce.
- Gaps: problems the contract did not cover, such as backup time or reporting.
Chapter 02
Renew, renegotiate or retender: how do you decide?
Renew when service and cost are right; renegotiate when service is right but terms need changing; retender when service problems repeat or the scope has changed a lot.
| Choice | When it fits | Watch out for |
|---|---|---|
| Renew | Good service, fair cost, small changes | Rolling forward unwritten problems |
| Renegotiate | Good service, terms or scope need updating | Price-only talks that ignore service |
| Retender | Repeated problems, or a much bigger scope | Switching cost and handover risk |
Chapter 03
How should rates be handled at renewal?
Agree the pricing model, the rates for the new term and any volume or term discount, in writing.
With us, rates stay fixed for the agreed contract term even if diesel or CNG prices change; they are revised at renewal. That makes renewal the time to agree three things: the pricing model (fixed monthly per vehicle with a km limit, per trip, or per km on actuals), the rates for the new term, and whether a longer term or more vehicles earns a better rate, which can be quoted per company.
A rate fixed for the term is only fair if both sides look at it properly at renewal.Why we revise at renewal, not mid-term
Chapter 04
How should the renewal process run?
Review, decide, update the scope, agree rates, write the gaps into the contract and sign before the old term ends.
- Start the review early. Before the renewal date, with a year of data.
- Decide the path. Renew, renegotiate or retender.
- Update the scope. Routes, sites, vehicles and services for today's headcount.
- Agree rates and model. For the new term.
- Write the gaps in. SLA, backup plan, reports, data handling, notice.
- Sign before the term ends. So service continues without a gap.
Questions for the renewal meeting
- Which three problems repeated this year, and what will change?
- Which routes should be merged, split or added?
- Can you quote two pricing models for the new term?
- What would a longer term or more vehicles change?
- Which reports do we want that we did not get?
Chapter 05
What if renewal ends with a new vendor?
Plan the handover: a pilot route, overlap where possible, roster and pickup data shared, and employees told in advance.
If a retender brings in a new vendor, the risk is the first week. Ask for a pilot route before the full start, share rosters and pickup points early, tell employees who their new driver and vehicle are, and keep the old arrangement until the new one runs. See switching transport vendor and the first 90 days with a new vendor.
Key terms
Renewal terms
- Renewal
- Extending a contract for a new term, often with changes.
- Retender
- Inviting other vendors to quote before deciding.
- Rate revision
- Changing rates at renewal; ours are fixed during the term.
- Notice period
- The time either side must give to end or change the contract.
- Scope change
- New routes, sites, vehicles or services added at renewal.
- Service credit
- A bill reduction when an SLA target is missed, if agreed.
In Gujarat
Where we run company transport in Gujarat
Shiv Shakti Tours & Travels runs employee and executive transport from a head office in Ghatlodiya, Ahmedabad and a branch at Hansalpur Circle, Becharaji, next to the SMG (Maruti Suzuki) plant, with some cars and drivers based near Sanand and in Vadodara.
- Becharaji and the SMG plant areaPlant gates and vendor units; our branch is at Hansalpur Circle
- Sanand GIDCIndustrial estates in Sanand; cars and drivers based nearby
- Vithalapur and MandalUnits in the Vithalapur industrial area
- ChangodarShift transport for units along the Changodar belt
- AhmedabadOffices, airport accounts and staff pickups
- Gandhinagar and GIFT CityOffice shifts and government movements
- VadodaraSome cars and drivers based in Vadodara
- Mehsana and KadiStaff pickup towns for North Gujarat plants
- Viramgam and BavlaStaff pickup towns between Ahmedabad and the plants
Short answers
Short answers from this guide
- How should a company prepare for a transport contract renewal?Review the year's data, routes and gaps, then decide.
- Should we renew, renegotiate or retender transport?Depends on service, terms and how much the scope changed.
- How are rates handled at contract renewal?Fixed during the term, revised at renewal.
- Can an SLA be added at renewal?Yes, on request, using last year's data as a baseline.
- How do we change transport vendor at renewal?Pilot first, share data early, overlap where possible.
- All 100 corporate transport answersOne page per question, in the Knowledge Hub
Questions
Renewal questions
Do your rates change during the contract?
No. Rates stay fixed for the agreed term and are revised at renewal.
How long is a contract term?
The length is agreed per company; there is no fixed term.
Can we add sites or routes at renewal?
Yes, and vehicles can also be added during the term.
Do you offer better rates for longer terms?
Better rates for long contracts or many vehicles can be quoted per company.
Can we add an SLA at renewal?
Yes, an SLA with on-time targets and service credits can be written in on request.
Can you take over from our current vendor at renewal?
Yes, with a pilot route and a planned handover.
Can we get a year's data for the review?
Yes: trip-wise records, monthly summaries and utilisation reports on request.
Do you respond to retenders?
Yes. Send the RFP and we respond with documents and a proposal.
Next step
Ask for a proposal
Tell us the company, the location and what you need to move. We reply with our vendor documents and a proposal; nothing is sent until you press a button.
Transport enquiry from a company.
Car owners: we run our own fleet and are not adding cars from owners at the moment.Keep reading
Related guides and vendor files
- A scorecard for your transport vendorEight measures to review every month
- One transport vendor or several?Control, backup and price compared
- The first 90 days with a new vendorFrom pilot route to steady service
- Long-term contract ratesHow longer terms are priced
- Transport vendor files20 files: requirements, contract steps, reporting
- All corporate transport guides20 decision guides for HR, admin and purchase
Sources
Where the facts come from
- Owner-confirmed company facts (9 October 2026 questionnaires): licence checks, valid RC, insurance, permit, fitness and PUC shown on request, backup car typically within about an hour for a plant shift, GPS portal login, daily trip report, SLA and NDA on request, vendor audits, invoices split by cost centre, utilisation reports on request.
- Owner-confirmed 30 October 2026: start date agreed per company, three pricing models quoted per company, rates fixed for the contract term and revised at renewal, driver uniform and ID card, company name on the vehicle, boarding list for every trip.
Cite this guide: Vaibhaviba Bhavsinh Solanki, "Renewing a Transport Contract: A Buyer's Guide", Shiv Shakti Tours & Travels, updated 31 October 2026, https://www.shivshaktitoursandtravels.in/corporate-transport-guides/renewing-a-transport-contract.html