What are maintenance contracts?
Maintenance contracts are agreements in writing between a Client and a Service Provider which stipulates the terms and conditions for service delivery, including payment terms for the duration of such contract. Considering it is a legally binding document, all parties need to abide by the T’s & C’s and should ensure they have a copy for their records.
The benefits of having a service agreement
Any homeowner’s properties are regarded as valuable assets. Unforeseen circumstances can very easily arise, causing disruption and possible damages. Having a contract in place ensures you get the support you need, when you need it. These kinds of customers always receive priority treatment and reap the many advantages other regular clients do not get, such as fixed rates valid for the period of agreement and credit terms. It also creates a professional relationship and prevents future misunderstandings.
Basic content of the contract
- Identification of the parties – clearly identify the parties who enter into the agreement by stipulating legal names, identity numbers and contact details.
- Purpose – states the work layout as a detailed description as well as the capacity in which it will be performed, for example: contractor.
- Scope – a project plan for example, indicates the job steps or scope and adding it as an annexure to the document is generally accepted. It should contain a detailed breakdown of the job’s steps and completion dates.
- Compensation – specify the payment terms, the total project value and the process for variations and additions in this section.
- Contract representative – this section should contain the contact details for the administrator who will be dealing with queries and call outs.
- Resolution of disputes – defines the procedure or process to resolve any disputes.
- Signatures – the parties agree to acceptance and abiding by the terms and conditions.
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