Key Takeaways

  • Maintenance contracts ensure scheduled upkeep of properties, reducing liability and increasing asset longevity.
  • Types of maintenance contracts include comprehensive, preventive, corrective, and seasonal service agreements.
  • Well-structured contracts should outline scope, responsibilities, scheduling, payment terms, and performance standards.
  • Modern software solutions can enhance the efficiency of managing and selling maintenance contracts.
  • These agreements support predictable costs, regulatory compliance, and higher customer satisfaction.What are Maintenance Contracts?

What are Maintenance Contracts?

Property maintenance contracts are contracts between two parties that create an agreement in which one party will see to the upkeep of a possession of another party in exchange for agreed upon compensation. Such contracts are common in many industries and can be used to cover such items as land, buildings, equipment, and computers, for example. A property maintenance contract sets out the timeline, requirements, expectations, and price to be agreed upon for such coverage.

Such details are usually negotiated and then finalized in a maintenance contract proposal, which is similar to a pro forma invoice or a quote. Once this is agreed to a final agreement is settled with an official contract.

Types of Maintenance Contracts

Maintenance contracts come in several forms depending on the needs of the property and the nature of services required. Common types include:

  • Comprehensive Maintenance Contracts: Cover both preventive and corrective services, ideal for clients seeking full coverage with minimal involvement.
  • Preventive Maintenance Contracts: Focus on routine inspections and scheduled services to prevent breakdowns, especially for HVAC, plumbing, and electrical systems.
  • Corrective (Reactive) Maintenance Contracts: Provide on-call services to repair issues as they arise. These are often cheaper upfront but riskier in the long term.
  • Seasonal or Periodic Contracts: Target specific tasks like snow removal or landscaping during certain months of the year.
  • Facilities-Specific Contracts: Customized for schools, medical facilities, industrial complexes, and office parks, these focus on regulatory compliance and industry standards.

Each contract type should be tailored to the client’s operations, budget, and risk tolerance.

Property Maintenance

Property maintenance is a service that is contracted out when a party does not have the time or resources to see to such maintenance themselves. This maintenance is often essential to the efficient operation of a business or to the longevity of a piece of property.

For this service, there are all manner of companies and agencies that will provide upkeep in return for payment, and if your business cannot devote the proper resources to upkeep, it may be more than worth it to contract the work out. Property maintenance providers will act as caretakers and deal with upkeep, repairs, and replacements so that you don’t have to.

A good contractor will attempt to preserve (if not increase) the value of the property they oversee, as well as honor any tenant requests promptly and be transparent in their dealings.

Examples of services a maintenance contractor may provide include:

  • Lawn maintenance.
  • Carpentry.
  • Power washing.
  • Storm clean-up.
  • Sign installation.
  • Plumbing maintenance.
  • Electrical maintenance.
  • HVAC.
  • Painting.
  • Snow removal.
  • Drywall replacement.
  • Façade repairs.
  • Sign installation.
  • Graffiti removal.
  • General cleaning.

Building Maintenance

Building maintenance pertains to the cleaning of a building, either interior, exterior, or both, in addition to tangible property within the building. Having a dedicated building maintenance contractor can prevent small issues from turning into major ones. For instance, if there is an injury in your property due to lack of building maintenance, you could be liable for damages.

In a similar vein, in the apartment rental business, having an apartment maintenance agreement between tenant and landlord is important. Such an agreement details the duties of each party insofar as building maintenance is concerned, as well as penalties for the failure to uphold the terms of the contract.

Building maintenance agreements may cover every aspect of building maintenance, and you may have separate agreements for each one of them. For example, if your property includes an outer grounds area, the hedge and grass trimming can be covered in a lawn maintenance agreement, while the landscaping can be maintained with a landscape maintenance agreement.

Alternatively, a property maintenance agreement can be divided into separate sections that might detail such aspects as:

  • Building maintenance.
  • Common easement maintenance.
  • Private road maintenance.
  • Common driveway maintenance.
  • Landscape maintenance.
  • Lawn maintenance.

It is also possible to enter into a private maintenance agreement amongst multiple parties. For instance, if you share a driveway with other property owners, you can enter into a a private road maintenance agreement with all of them. Such an agreement should indicate what parties are beholden to it and what their duties are, as well as what the penalties will be for not upholding the terms of the contract.

Essential Clauses in Maintenance Contracts

An effective maintenance contract should clearly define the following elements:

  • Scope of Work: Detail which systems, components, and services are covered.
  • Performance Metrics: Set expectations such as response times, frequency of service, and minimum service quality standards.
  • Payment Terms: Define whether payments are made monthly, per visit, or based on milestones.
  • Liability and Insurance Requirements: Clarify who is responsible for damages, warranties, and necessary insurance.
  • Termination Clause: Explain how either party may end the agreement and any penalties or notice periods involved.

These clauses help reduce disputes and ensure both parties understand their obligations.

Advantages of Professional Maintenance

When running a commercial property, contracting the maintenance out will save you both time and money overall. More specifically, advantages of doing this include:

  • Saving money by not having to purchase and run maintenance equipment.
  • Having the work done by knowledgeable professionals who will most likely provide higher quality upkeep than if you focused on the maintenance yourself.
  • Saving time by not having to oversee maintenance yourself, nor deal with an in-house maintenance crew and any labor issues that may arise.
  • Helping draw in prospective tenants, if you are in the property rental business.

That said, you will have to obtain the services of a reputable and reliable contractor to obtain these benefits, so taking the time to carefully review the possible contractors is very important.

Technology and Tools to Manage Maintenance Contracts

Advances in service management software have revolutionized how businesses oversee maintenance contracts. Modern tools offer:

  • Automated Scheduling: Ensures services are conducted on time without manual oversight.
  • Digital Documentation: Keeps service records, performance logs, and invoices in one place.
  • Customer Portals: Allow clients to request services, track progress, and review past work.
  • Analytics and Reporting: Provide insight into recurring issues and long-term cost savings.

These tools reduce administrative overhead and increase customer transparency.

Frequently Asked Questions

1. What is typically included in a maintenance contract? Maintenance contracts often include a list of covered services, scheduling frequency, payment structure, service response times, and liability terms.

2. How do preventive and corrective maintenance contracts differ? Preventive contracts aim to avoid issues through routine service, while corrective contracts respond to problems after they occur.

3. Are maintenance contracts legally binding? Yes, once signed, maintenance contracts are legally enforceable agreements outlining the duties and rights of both parties.

4. Who usually provides property maintenance services? Independent contractors, property management firms, or specialized maintenance companies typically provide these services.

5. Can technology help manage maintenance contracts? Yes, contract management platforms can streamline scheduling, billing, and service tracking, improving efficiency and transparency.

If you need help understanding property maintenance contracts, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.