Maintenance Agreement Contract: Key Terms and Best Practices

Key Takeaways

• A maintenance agreement defines the terms, scope, and responsibilities for ongoing service or equipment upkeep between a provider and client.
• Common types include HVAC maintenance agreements, equipment service contracts, and facility maintenance plans.
• Key components often include scope of work, payment terms, warranties, response times, service exclusions, and dispute resolution methods.
• Maintenance agreements help prevent disputes by clarifying expectations, timelines, and deliverables.
• Software tools can streamline management of service agreements, improving scheduling, tracking, and customer communication.
• Well-drafted agreements may enhance customer satisfaction, ensure regulatory compliance, and boost profitability for service providers.

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:

• Verbal
• Written

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.

Types of Maintenance Agreements

Maintenance agreements can vary based on the industry, type of service, and client needs. Common types of maintenance agreements include:

• Preventive Maintenance Agreements: Regular inspections and minor repairs to prevent equipment failure.
• Corrective Maintenance Agreements: Focus on repairs and replacements after equipment failure.
• HVAC Maintenance Agreements: Routine servicing of heating, ventilation, and air conditioning systems, often including seasonal tune-ups.
• IT System Maintenance Contracts: Support for software, servers, and networking equipment to ensure system uptime.
• Vehicle Maintenance Contracts: Scheduled vehicle servicing to maintain safety and performance.
• Property Maintenance Agreements: Upkeep of real estate properties, including landscaping, plumbing, and electrical systems.

Choosing the right type of agreement depends on the nature of the assets involved and the service goals of the parties.

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.

Benefits of a Maintenance Agreement

A well-drafted maintenance agreement offers several advantages for both service providers and clients, including:

• Reduced Downtime: Regular servicing helps prevent unexpected equipment failures.
• Budget Predictability: Fixed service costs help businesses manage expenses without surprises.
• Extended Equipment Lifespan: Preventive care can enhance the longevity of assets.
• Priority Service: Many contracts offer clients faster response times and priority scheduling.
• Improved Compliance: Ensures adherence to safety standards, environmental regulations, and manufacturer requirements.
• Dispute Prevention: Clear terms help minimize misunderstandings and potential legal disputes.

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.

Optional Clauses to Consider in Maintenance Agreements

In addition to the standard sections, consider including the following optional clauses for a more robust maintenance agreement:

• Force Majeure Clause: Specifies what happens if unforeseen events like natural disasters prevent service delivery.
• Renewal Terms: Outlines automatic renewal provisions or options for contract extensions.
• Performance Metrics and KPIs: Defines service-level expectations, such as response times or repair completion targets.
• Escalation Procedures: Details how issues will be handled if service levels are not met.
• Service Reporting Requirements: Specifies if and how service logs or performance reports will be provided.
• Client Obligations: Clarifies the responsibilities of the client, such as providing access to equipment or facilities.

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.

Using Software to Manage Maintenance Agreements

Many service providers use specialized software to streamline the management of maintenance agreements. These tools help automate key tasks such as:

• Scheduling Routine Maintenance: Automatically notify clients of upcoming service visits.
• Tracking Service History: Maintain detailed logs of past services performed on equipment.
• Managing Work Orders: Assign tasks to technicians and track job progress in real time.
• Customer Communication: Send reminders, service updates, and satisfaction surveys.
• Invoicing and Payments: Generate invoices based on service milestones or fixed schedules.

These platforms improve operational efficiency, reduce administrative burdens, and enhance the customer experience.

Frequently Asked Questions

1. What is the main purpose of a maintenance agreement?
   A maintenance agreement sets clear expectations for service delivery, helping prevent equipment failures, minimize disputes, and ensure consistent performance.
2. What should be included in a maintenance agreement?
   A comprehensive maintenance agreement should include the scope of work, payment terms, service schedule, warranties, exclusions, dispute resolution methods, and termination conditions.
3. How often should maintenance services be performed?
   The frequency depends on the type of equipment and industry standards. Common schedules include monthly, quarterly, biannual, or annual maintenance.
4. Can a maintenance agreement be customized?
   Yes, these agreements can be tailored to meet the specific needs of the client and the nature of the services provided, including custom response times or service levels.
5. Do I need legal help to create a maintenance agreement?
   While simple agreements can be drafted independently, legal guidance is recommended for complex contracts or when large assets are involved. You can find an attorney on UpCounsel for assistance with drafting or reviewing your maintenance agreement.
    

If you need help with a maintenance agreement contract, 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.