A maintenance agreement is a deal arranged between the service or asset provider and the client considering the services to be delivered and the payment acknowledged for the provision of the services.
Key Inclusions in Maintenance Agreement
- Terms and conditions for service.
- Project Description
- Exclusions from service
- Fee schedule
- Penalties and fine payments
- Disclaimers and warranties
- Time period
What Is a Maintenance Agreement?
A maintenance agreement is a legal document between two parties that establishes the utilization of an asset or service. It is applicable for various ranges of assets like equipment, building, computers, technologies, services, landscape, etc.
It can also extend across various industries to set up the maintenance of all the assets in a clear manner by clearly including the requirements, schedule, expectations, timeline, price, etc.
If you are maintaining an asset owned by others, then it is necessary for you to get this agreement to protect both parties’ rights.
When Needs a Maintenance Agreement?
Even though the verbal agreement is there, having a written maintenance agreement ensures all the details and the associated terms and conditions are documented and agreed upon in a proper manner.
The agreement between the two parties depends on the type of assets or the services that are being utilized over the course. It is used under following conditions:
- when the agreement is in regard to the services and its maintenance.
- when the asset involved in the property such as building, landscape, etc.
- It can further be classified into service level, master service, and consulting device agreements based on companies' requirements.
Recognizing its importance is needed before finalizing the main agreement, so both parties can fully understand all the terms and conditions to avoid any arguments that might arise later on.
The maintenance agreement is needed to list down all the detailed instructions of the services, maintenance works along with provisions for emergency situations and repairs.
What Should be Included in the Maintenance Agreement?
The agreement should include all the necessary details so that the involved parties will be able to understand the rights and responsibilities properly. Various elements that are drafted in the agreement are as following:
- Parties: In the agreement, the party using the services is termed as a client and the party providing the services is termed as a contractor. The party's details such as names, addresses, and other needed information.
- Purpose: The agreement states the list of services, assets that are being utilized and provided by the parties.
- Scope of Service: Instructions of usage, maintenance, and other details pertaining to an emergency also should be provided.
- Terms of Payment: Installments or one-time payment, payment at start or end of the agreement period. All such details regarding the monetary terms should be documented.
- Warranty: The licensing, warranty of the equipment, and assets during the course of agreement and the necessary details are to be mentioned.
- Time Period: The start and end date of the agreement and the process if in case of extension or release of the agreement prior to the time period agreed.
A maintenance agreement is generally made to understand and verify the correctness of the details in the agreement and then the final agreement is documented.
A maintenance agreement summaries all the intricate details necessary to procure and employ the assets and services of the parties entering the agreement.
It also varies based on the type of assets and services involved and accordingly the maintenance agreement or the device agreement is utilized by the parties.
If you are looking for one, CocoSign offers the best templates available for any type of maintenance agreement. You can get your free sample from our website.