Maintenance Services Agreement Contract Template (B156)

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Who can use this Maintenance Services Contract?

This Maintenance Services Agreement is a straightforward agreement under which a contractor provides maintenance services to a client.

What is this contract for?

Biased in favour of the company providing the services, the contract can be used for maintenance of equipment, plant or buildings: details of the precise services will be set out in a schedule together with the fees and expenses.

What are the main issues?

Scope of services.  These will be contract specific.  Our services schedule has indicative wording to deal with routine services, emergency callouts and non-routine services.  It’s important that both parties know what is covered by the standard fee and what can be treated as extras.  Also, the company may want to exclude some activities, e.g. dealing with faults that have been caused by improper use or operation of equipment by the client, unless it feels able to handle them and the client pays for the work.

Fees and expenses. Usually there is an agreed annual or other periodic charge plus rates for non-routine work. These may vary depending on whether the work is performed during normal working hours or at weekends or evenings. Also, some parts and materials may be needed, in which case they will be charged for in addition to the standard fees.

Duties of the company will include performance of work to a reasonable standard, and employing competent personnel. In addition, when relevant, spare parts for equipment should conform to the manufacturer’s requirements.

Duties of the client will include giving access to the company to do the work, providing necessary and agreed facilities, possibly storage of spares or equipment, obtaining any planning or other consents that might be needed.

Variations.  Any changes to the services will need written agreement on both scope and price.

Liability.   The company will usually want to limit its liability to the cost of remedying any failure to perform services properly.  In particular, it will want to have wording that excludes liability for indirect or consequential loss that might be suffered by the client as a result of some failure in the maintenance service.

What detailed terms does the contract contain?

The main points cover:

  • contract formation
  • obligations of the company
  • obligations of the client
  • fees, expenses and payment
  • variations and exclusions
  • property and risk
  • insurance
  • duration
  • limit of liability
  • termination
  • intellectual property
  • force majeure
  • disputes
  • a general clause addressing notices, assignment, subcontracting, the scope of the agreement, amendments, warranties, severance and waivers.

This contract is appropriate for a small to medium-sized business that wants a standard form of maintenance contract for its various clients.

We also have a maintenance contract suitable for a client engaging a contractor – B125.

For more information on each of these sections, see our Explanatory Notes below which you will also receive when you download the document from our website.

For information on signing documents see our Contract Signing page

When I download the document, can I change it and/or use it more than once?

Yes, all ContractStore’s templates are in MS Word and you can use the contract on more than one project. For more information, watch the video on this page of our website or see our FAQs

Legal support

ContractStore supplies templates and is not a law firm.  But experienced lawyers write all our templates, so we can arrange legal assistance for customers who need special terms in one of our documents or a bespoke template. . For more information see our Legal Services page.  For more information see our Legal Services page.

Contract Author –Giles Dixon

And if you want to contact us see our Contacts page.

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Explanatory Notes

Designed from the Company’s point of view, this Maintenance Services Contract is intended as a template for any company who is engaged in the business of providing maintenance services to a Client.

These terms and conditions are intended to be used with a schedule of services and charges submitted by the Company to a Client, and a form of Schedule is included.

The Form of Agreement needs to be completed by the Company and Client, and the Terms & Conditions plus other relevant documents sent to the Client.  If the Client wants to change anything, it may be necessary to have another Schedule drawn up, signed incorporating the changes.

To avoid later disputes it is advisable for both parties to be very clear as to the detailed scope of the services, the equipment to be installed and the price – vagueness in the specification is more likely to result in disputes than clarity.

Turning to the specific clauses in the Terms & Conditions:

1. CONTRACT FORMATION

This is intended to make it clear that the Company’s terms and conditions override those of the Client.  In practice, this can be more difficult than it appears and legal advice should be obtained.

2. GENERAL OBLIGATIONS OF COMPANY

The Company has basic obligations to exercise reasonable skill and care, and provide Services as agreed between the Company and the Client.

3. GENERAL OBLIGATIONS OF CLIENT

The Client is responsible for giving the Company access to the site when he needs it and for providing facilities such as secure storage for equipment, power supply etc.  Responsibility for getting planning consents is with the Client.

4. CONTRACT PRICE & PAYMENT

This refers back to the Schedule to a large extent but in case the Schedule does not cover everything, there is provision for weekly / monthly payment.  The Company also has the right to give notice to suspend the work for non-payment (this is a statutory right for construction contracts in the UK) as well as the right to claim interest on late payment.

The statutory interest entitlement works out at 8% above base rate. Costs can also be claimed under the Act referred to in this clause.   For more information there is a helpful website at www.payontime.co.uk.

5. VARIATIONS

This is designed to ensure that if a Client asks for a change to the Services provided by the Company, the Company will be paid for it at an appropriate rate.  To the extent that a variation in the Services results in a change to the contract period or cost to the Client, this clause sets out the Company’s rights and obligations.

6. PROPERTY AND RISK

Ownership of all equipment is retained by the Company until everything has been paid for, but risk of loss or damage passes to the Client when equipment is delivered to the site. The Company’s liability in the event of any damage is limited.

7. INSURANCE

This will need to be tailored to the particular circumstances but under our clause the Client is responsible for insuring the equipment and services and the Company has to maintain public liability and employers liability insurance.

8. DURATION

This refers to the initial period of the contract and confirms that the contact will continue unless legally terminated.

9. LIMIT OF LIABILITY

Under this clause, the Company has responsibility for remedying defects in any Services performed, at the request of the Client.

This clause makes it clear that the Company will not be liable to the Client for losses incurred by the Client, and limits the financial liability of the Company under the Contract, insofar as the law allows.

Legal advice is recommended here as the wording of limitation clauses may need to be adjusted to take account of particular circumstances and there is also legislation designed to protect consumers against unfair terms.

10. TERMINATION

This gives the Company party the right to terminate the contract if the Client fails to pay or commits another material breach of the Contract. Either party may terminate the contract if the other party becomes insolvent. The financial consequences of termination are discussed, with particular reference to amounts due to the Company.

11. INTELLECTUAL PROPERTY

The Company’s designs are owned by the Company, and the Client has limited rights to use them, as set out in this clause.

12. FORCE MAJEURE

Unforeseeable events such as flood and fire are covered by this clause, limiting Company liability to the Client.

13. DISPUTES

This clause contains a three stage method of resolving disputes – first, direct negotiation, second a referral to adjudication and, thirdly, the courts of England and Wales. There is information on adjudication in the Free Information (Alternative Dispute Resolution) note on our website.

14. GENERAL

This contains a number of provisions concerning notices, assignment, etc.  For more detail on some of these subjects, see the Free Information (Boilerplate Clauses) note on our website.