Building Maintenance Contracts: Everything You Need to Know
Building maintenance contracts are legal agreements between a company and the professionals they choose to hire for maintenance in their company building. 3 min read
2. Define Terms
3. Service Expectations
6. Legal Guidelines
8. The Perks of Outsourcing Maintenance
Building maintenance contracts are legal agreements between a company and the professionals they choose to hire for maintenance in their company building.
How to Write a Maintenance Contract
Building maintenance contracts are most commonly used in a business setting and include services for:
- Cleaning and upkeep
- Equipment management (HVAC, plumbing, electric, etc.)
Depending on the type of company hiring the maintenance services, they might also require maintenance for computers, vehicles, or medical equipment.
No matter what kinds of maintenance a company needs, they'll want to be sure to form a good maintenance contract in order to manage the relationship between themselves and the contractor they are hiring for the services. This contract will ensure that both sides of the agreement understand all that is expected and their rights in the arrangement.
First, the contract should clearly define any official terms that will be used in the document. Each party involved in the agreement should be defined by including the names of the companies - the company providing the service, and the company paying for the service. Also, terms like "work" and "contract year" should be defined to be sure that everything is clearly understood.
Another important part of the contract is the section that spells out exactly what services are expected. Any and all services needed should be detailed here to be sure that the provider fully understands what the hiring company wants.
If the building maintenance contract is specifically for a facility, every service needed in that facility should be listed and the expectations explained. This might include:
- Electrical work
- Elevator maintenance
If an issue comes up regarding a specific service that isn't detailed in the agreement, it's going to be tough for the court to come to a ruling on the issue.
This part of the contract should be regularly reviewed and revised, especially if any new maintenance needs arise.
The compensation promised for any services should be clearly laid out in a building maintenance contract. When a company hires an independent contractor for maintenance, they should list the hourly rate that they agree to pay for the services. They should also specify how the contractor will be paid and any other information regarding compensation.
Larger maintenance companies might require additional details in the compensation portion of their contract. These details include:
- Compensation policies
- Credit terms
- Discount options (sometimes for early payment or certain types of payment)
Warranties and other promises should be clearly spelled out in the contract. Even just stating that both parties involved in the contract agree to comply with the terms of the contract for the entirety of the professional arrangement is important.
Other warranties might deal with how to handle dissatisfaction with services performed.
Building maintenance contracts should also outline how any legal issues will be handled. Here a contract might include an arbitration clause or require professional mediation instead of a court case.
Indemnity clauses might also be found in this section of the contract, clarifying the liabilities of each party involved in the contract.
Finally, guidelines for termination of the contract should be included. Some termination clauses might state that an agreement will be automatically voided if either side of the contract participates in illegal activities or commits fraud.
Other kinds of termination clauses include stipulations regarding the consequences for breaching the contract or failed payments. Usually, the guilty party in these instances will be notified of the voided contract and won't be able to hold the other party liable for any damages or payment.
Building maintenance contract examples and templates are available online.
The Perks of Outsourcing Maintenance
There are pros for outsourcing the maintenance needs of a company.
First, independent contractors offering maintenance services will be experts at whatever type of maintenance they offer, so the company won't need to worry about training costs or time.
Second, if a company hires employees to handle maintenance issues any and all issues or accidents are the responsibility of the company. If a worker is injured, the company is held liable.
When accidents happen with an independent contractor, their insurance coverage will help to take care of the issues and costs involved. Coverage for such incidents should be clearly outlined in the building maintenance contract.
If you need help with building maintenance contracts, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.