Plumbing service contracts offer customers comfort in that they know who to call if there is ever a plumbing emergency. One party will provide the service and the other will provide compensation. There are various types of service agreements, so make sure you fully understand the contract prior to signing.

What are Plumbing Service Contracts?

A plumbing service contract will support you if there is ever a plumbing emergency. This offers customers greater peace of mind when it comes to ensuring all of the home's plumbing is in good standing. Unfortunately, due to the complexity of plumbing systems and the impact of constant water flow, plumbing issues are often inevitable at some point in time.

This is why it's important to take a proactive approach and plan ahead. Overall, these agreements can go by a number of different names, including:

  • A comfort plan
  • A complete comfort agreement
  • A plumbing or HVAC maintenance contract
  • A planned service agreement
  • Home warranty

Although these agreements go by different names, they all essentially offer the same thing. This type of agreement creates a legally binding contract between you and your service provider. In turn, you will be able to maintain both your HVAC and plumbing systems, avoiding any expensive emergency calls in the future.

The Purpose Behind Service Contracts

When creating service contracts, there are two main purposes.

  • The first is to ensure that preventative maintenance is being performed on all related equipment. When a system is clean and functioning at an optimal level, you will require fewer service calls.
  • To develop a partnership in order to keep accurate records throughout the years.

It is also important that you seek routine maintenance for warranty purposes. Check with your equipment manufacturers so that you're fully aware of your responsibilities.

Types of Service Agreements

There are a number of possible service agreements depending on the situation and service required.

  • Home warranties, for instance, are annual agreements that often come with a heavy membership fee. The repairs made under these warranties are often short-term solutions that will likely require future service.
  • A regular service agreement will vary from company to company. In some cases, customers can choose what will be covered. Once again, this type of agreement can offer greater peace of mind as well as additional benefits.

How to Make a Plumbing Maintenance Agreement Contract

When crafting up a plumbing maintenance agreement, this contract should clarify all of the basics regarding maintenance services and associated payment. For example, how will the plumber be reimbursed when required to purchase parts?

Please consider the following steps and advice to create a well-planned contract.

  • Write a complete list regarding all of the locations and facilities that need to be maintained.
  • Include details relevant to both parties. Your contract will need to include an offer, an acceptance of that offer, and then mutual assent — which essentially means that both parties agree to the terms outlined in the contract.
  • Know that in order to be considered "capable," both parties need to be at least 18 years or older.
  • Next, establish the estimated timeframe for the maintenance. For example, an agreement may last for a single year and can then be renewed if both parties desire.
  • When the time comes, how will an agreement be terminated? What will happen if there is a breach of contract?
  • How will routine maintenance be addressed and what will this service include?

Are Service Agreements Right For You?

Service agreements help catch and cover small problems that could become more complex and expensive problems in the future. In the long run, this can help save you money. More and more plumbers are offering service agreements which typically require you to pay a set annual fee.

Remember, a service contract is only ever as good as the provider. When entering a long-term agreement, make sure you know and trust your plumber. This will help you maintain a positive working relationship.

Before you agree to a service agreement, take a closer look at the terms. How often can you seek an inspection? Does the agreement include specific services and what happens during a state of emergency?

Overall, you can expect to pay a few hundred dollars for a quality plumbing service maintenance agreement. Some companies will offer various levels of service, so you can select what's best for your needs.

Whether you are a plumber or homeowner, it is important that you become familiar with service agreements. Any questions that you have should be addressed prior to signing. When the expectations of both parties are met, you can prevent future issues.

If you need help with plumbing service 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, Stripe, and Twilio.