What is a Maintenance Agreement?
A maintenance agreement is a document involving two parties that creates an agreement that one party will provide service to maintain the product or asset of the other party. A maintenance agreement can also span across other industries. It can be in a software company wherein one party is responsible for taking care of another party's company website and such. The purpose of it is to have a consistent and readily available service provided by the contractor. A property owner secures a maintenance agreement to upkeep their product.
How to Write a Maintenance Agreement?
Like a child, a property must be maintained to avoid damage. It must be executed properly and accurately. Whatever type of maintenance your assets or product needs, writing a proper and formal maintenance agreement is a key to ensure mutual rights and responsibilities in the partnership. To govern your maintenance agreement, here are some guidelines to help you draft this basic agreement.
1. Write the Definition of Terms
The first part of your maintenance agreement is important terms needed to be defined for the support of the contract. Define the involved parties to the definition—the service provider and the client. List their company's complete and legal address. Thoroughly define the terms that are vague and broad to easily understand your simple agreement.
2. List the Services to Be Provided
Layout the services that the service provider will provide for the clientele. Go thoroughly into the details of each service and list services as far as you can list that will be beneficial for your property. If it specializes in the maintenance of facilities, make sure to specify the services to be conducted.
3. Discuss the Compensation for Services
If you want to have a partnership with an independent maintenance contract or contractual, include the rate of payment for the service, the method used in payment, and any provisional compensations in the agreement. While dealing with big companies and corporations, include provisions that are agreed upon the terms in compensation including the credit terms and discounts for early full payment.
4. State the Contract Warranty
Warranties can be classified into a simple or complex warranty. Simple warranty can simply guarantee that both of the parties must comply with the legal clauses written in the sample agreement up until its expiration. A complex warranty can define as involving money matters if one of the parties is dissatisfied with the service offered.
5. Set the Guidelines
If circumstances occurred and it involves a dispute, try meditation to avoid escalating the argument into legal terms and will be a vehicle in a separation. Include an indemnity clause wherein it will state that the involved parties must be held liable about the statements agreed in the contract.
6. Include List of Provisions in Contract Termination
You can include a level of provisions in terminating a contract such as the agreement will be null and void if a party is involved in a criminal act or one party wanted to breach the contract and the other party must not have any liabilities about it.