Maintenance Agreement Contract: Everything You Need to Know
A maintenance agreement contract is a service agreement that a provider will draft with their customer the terms for the exchange of services for compensation.3 min read
A maintenance agreement contract is a service agreement that a provider will draft with their customer that will outline the terms for the exchange of services for compensation. There are two forms of service agreements:
A verbal agreement is often created with same day service such as getting a haircut. A written agreement will be necessary when the terms will be more complex, require more explanation, or will occur over a longer period of time. Written contracts will:
- Include a description of the work.
- List the price for the service.
- Detail assurances.
You can use a written agreement for a specific job or an ongoing service arrangement. Other names for service agreements include:
- General Service Contract
- Service-Level Agreement
- Master Service Agreement
- Independent Contractor Agreement
- Consulting Service Agreement
When Should a Service Agreement Be Used
A service contract should be used at any time that you plan to provide services for a client and wish to protect your own interest. You may want to document your rate of pay, the frequency that you will invoice, and any insurance clauses. You also should have a contract in the event that confidentiality is required.
How to Write a Maintenance Contract
There are a number of services that you would want to draft a maintenance contract for such as:
- Facilities maintenance
- General upkeep
- Troubleshooting and repair of equipment
- Computer maintenance
- Vehicle maintenance
No matter what types of service you need to draft an agreement for, it is important to know what to include in the contract so that both parties fully understand their rights and responsibilities. In your maintenance agreement, you will need to include:
- A section that defines both the provider and the client including their full legal names and any terms that need to be defined in the contract.
- A list of the services that will be performed in detail. Make sure all possible services as included.
- The compensation for the agreed upon services. This could be an hourly rate, the cost per project, or weekly or monthly rates.
- A section that goes over the warranties and promises that each party makes. This will include any legal statutes that will need to be included throughout the life of the relationship.
- The terms of confidentiality, nonsolicitation, and noncompetition. This section is optional, but it may be prudent to include a clause that prevents either party from unfairly competing for a period of time.
- The ownership of materials and which materials each party is expected to provide for the service to be completed.
- The guidelines for handling any possible for legal disputes or contract issues. Typically, this section will include professional arbitration or mediation before bringing the dispute to the legal arena.
- The provisions and conditions for terminating the contract on either side. Typically this section will also include what is considered to be a breach of contract.
Sections to Be Included in a Product Maintenance and Repair Agreement
While the contract will vary depending on the type of service and the duration of the agreement, all contracts will have some of the same basic sections. These include:
- Provider and buyer contact information.
- Definitions of common terms.
- General service terms and specifications.
- Response time and returns procedure.
- Support conditions and obligations.
- Service exclusions.
- Price, Invoicing, and Payment terms.
- Penalties, fees, and missed payments.
- Warranties and disclaimers.
- The date in which the service starts and the contract ends.
- The signatures of representatives for both parties.
What Is a Heating, Ventilation and Air Conditioning (HVAC) Maintenance Contract?
Service contracts are a common practice between businesses and individuals and an HVAC service company. When a company or individual enrolls in a contract, they are agreeing to receive regular biannual service for their HVAC system to provide extra attention and ensure functionality through the season. These agreements often include discounts on accessories and emergency service for members.
To make the contract worth the cost to the customers, the contract rate will typically be slightly less than if they were to schedule two individual maintenance visits. Many customers like having the contract so they don't have to worry about keeping up with their HVAC system and can enjoy the benefits of special service during the busy season.
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