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Know EVERYTHING the Maintenance Contract needs to be valid

Understand what a Maintenance Contract is and in which situations you should use it. How to do it, which essential clauses must be included in your contract. Simple PDF and word templates for printing.

What is a Maintenance Contract?

Maintenance Contract is a formalized agreement between service providers and customers that guarantees the continuous supply of services and equipment related to the contracted professional technical assistance.  

This type of contract is usually designed for the maintenance of equipment for continuous use and that requires constant maintenance in its structure, such as elevators, air conditioning and water pumps.

Before drawing up this type of contract, team of Skymarketing discuss in detail clauses related to the good performance of the contracted services, which will be detailed below.

In addition, at this stage, the duties and rights of the parties must be defined in a clear and objective way so that the obligations and costs involved in each transaction can be clearly understood.

This initial negotiation will guarantee to those involved the provision of the service in the best possible way during the contracted period. 

This ensures greater efficiency in the use of resources included in these transactions that continually demand prevention and repair of equipment for continuous use. 

How important is the Maintenance Contract?

As this is a contract with constant demands, the parties to this contract should seek to formalize it so that it is known exactly what preventive and corrective maintenance are, the costs and how the services will be performed.

The details of the services offered ensure greater security and quality of services to those involved.

The lack of formalization often generates wear and tear that can even culminate in lawsuits and cause unnecessary expenses. 

In addition, contracting services only verbally or through tools such as whatsapp can give rise to endless discussions, as the parties are only at the mercy of common sense and goodwill. 

Therefore, the lack of formalization wastes time, energy and causes a lot of legal uncertainty in these relationships.

Quickly and safely, to escape problems, the person in charge must download a Maintenance Contract, in the format of a Word or PDF document, fill in information about the contracted services and formalize their hiring following the guidelines that the team of taj residencia islamabad will explain below. 

Every contract must follow basic rules and requirements that sometimes on the internet are outdated, as the models offered are generic and do not represent what is specific in the contractual relationship, which is unique.
Therefore, the contract is indicated to be made by a notary or lawyer, who knows exactly what are the mandatory clauses it must have.

Maintenance contract

What are the types of Maintenance Contract?

To meet the specifics of each demand, the Maintenance Contract has two modalities that take into account the economic value and complexity of the devices. 

The cost-benefit in each type of contract will be the determining factor when choosing which type of obligation to assume.

The first modality is the Period Service Contract and is indicated when the equipment requires frequent maintenance and has a high cost (as in the case of elevators). 

In the management of maintenance contracts, a preventive maintenance plan is usually elaborated which details a schedule for the execution of maintenance services in this type of contract. 

In this contract, the following are defined:

  • if the execution will be carried out in an unlimited manner on any day and time (full service);
  • whether there will be a limitation on preventive maintenance services and opening hours (limited hour service); 
  • whether they will be carried out with a limit on preventive maintenance and expenses (limited service).

The second type of Maintenance Contract refers to the Service Contract on Demand and is related to the contracting of maintenance services on low and medium complexity equipment.

This type of contract can be offered to ensure customer loyalty to the contracting company, offering, for example, the repair of equipment sold to the company in the event of a breakdown (such as the sale of security cameras).

What documents are required for hiring?

In order to have legal validity and security, some documents must be attached to the contracts.

The selection of documents must be in accordance with the type of person present at the contract. 

In the case of the Maintenance Contract, in addition to the documents listed below, the company representative must be required to present an ART (Technical Responsibility Note) and register with the corresponding Professional Council.

Every contract must follow basic rules and requirements that sometimes on the internet are outdated, as the models offered are generic and do not represent what is specific in the contractual relationship, which is unique.
Therefore, the contract is indicated to be made by a notary or lawyer, who knows exactly what are the mandatory clauses it must have.

Maintenance contract

Individuals involved in the transaction (contractor, contractor, manager or legal representative of the company, depending on the case):

  • CPF, RG and proof of residence.
  • Building Condominium
  • CNPJ;  
  • Certificate of the Manager's Election Minutes, registered at the Registry of Documents and Titles;  
  • Condominium Convention Deed registered in the CRI or Minutes of the Meeting that resolved on the registration with the CNPJ registered in the CTD or CRI Certificate containing the information necessary for registration; 
  • Proof of the non-existence of the Condominium Agreement Deed will be through a Declaration by the Manager legally constituted in the Minutes, that the Condominium does not have an Agreement registered with the Notary Public: in this case, if there is no written Condominium Agreement, only the Certificate of the Minutes may be accepted of registered Manager's Election.
  • CPF and RG of the receiver;
  • Individual Firm / Individual Entrepreneur
  • Identity Card and CPF of the legal representative;  

For companies incorporated after January 2003:  

“Entrepreneur Application” Form; Data Change Act (if any) registered at the Commercial Registry, also called Company Registration Application, or Simplified Certification.  

For companies incorporated until January 2003: “Individual Firm Statement”; subsequent changes (if any) registered with the competent body;  

  • if there is no way to prove the individual signature, a printed statement from the internet pages may be accepted, as long as the website is official (Federal, State or Municipal Agencies);  
  • Business company
  • CNPJ;  
  • Public Registry of Mercantile Companies in charge of Boards of Trade;  
  • Identity Card and CPF of the holder(s).

Other Legal Entities not mentioned:

  • CNPJ;  
  • Constitution documents that qualify and authorize legal representatives to perform legal acts on their behalf;  
  • Identity card and CPF of the representative(s).

Every contract must follow basic rules and requirements that sometimes on the internet are outdated, as the models offered are generic and do not represent what is specific in the contractual relationship, which is unique.
Therefore, the contract is indicated to be made by a notary or lawyer, who knows exactly what are the mandatory clauses it must have.

Maintenance contract

How to make a Maintenance Contract?

To make a Maintenance Contract, it is first necessary to have perspective on the costs and technical demand of the equipment that needs maintenance or repair.

After that, the contract must be drafted to ensure legal certainty and good provision of contracted services. 

The contracted company and the contracting party must pay full attention to the wording of the contractual clauses and seek to negotiate so that it is advantageous for both.

Therefore, below is the definition of the main clauses that must contain your Maintenance Contract and the explanation of how they must be done.

After making a general model, those involved can make some additions according to the needs of the business and print in two copies of equal content, just like in paradise city .

Qualification of the parties

This is the clause that will define who is involved in the transaction. 

In this field, two terms are brought: a) Contractor: individual or legal entity wishing to contract the services; b) Contractor: natural person or legal entity that will provide the contracted services.  

After identifying the contracting and contracted parties, it is necessary to proceed with their qualification. 

Qualification is the description of the parties where the following information is brought: 

  • name of the CONTRACTING PARTY and the CONTRACTOR (civil name or company name), plus information such as marital status, profession and
  • place of birth or type of legal entity;
  • CPF and RG of the CONTRACTING PARTY, if it is an individual, or CNPJ, if it is a legal entity; 
  • CPF and RG of the CONTRACTOR, if it is an individual, or CNPJ, if it is a legal entity; 
  • address of both parties; 
  • complete identification of the legal representative of the legal entity - name, place of birth, marital status, profession, civil identification and
  • home address.

Every contract must follow basic rules and requirements that sometimes on the internet are outdated, as the models offered are generic and do not represent what is specific in the contractual relationship, which is unique.
Therefore, the contract is indicated to be made by a notary or lawyer, who knows exactly what are the mandatory clauses it must have.

Maintenance contract

Description of the object or service

In this topic, the object and the maintenance services involved in the contract must be detailed in a clear and objective manner.

To make the description, the parties may choose to make a general reference to the service and object and insert an attachment with full reference to the services, object, costs and form of execution of the services.

Or they can also display the full description in this clause and define the form of execution of the contracted maintenance services (full service, limited hour service or limited service). 

The choice of the general or detailed description at this time will depend on the complexity of the services provided and the contract writer must assess their convenience.

In addition to the detailed indication of the contracted service, the preventive maintenance schedule must be exposed and the covered demands described for better management of maintenance contracts.

In this clause it is also important to clarify some issues such as:

  • communication channel with the company: private telephone, official telephone support or by application; 
  • deadline for service, in this item, it is recommended seven days counted from the registration of the contact;
  • what is the frequency of services provided;
  • whether a technical report will be made available;
  • how the registration of technical visits will be done; 
  • registration of complaints for quality control;
  • other items that it deems convenient to optimize communication and allow for later collection of those involved.

Contractors Liability

The responsibility of the contracting parties refers to the obligations that, in general terms, are summarized in the payment of the contracted amount and in offering the necessary conditions for the good performance of maintenance services by the CONTRACTING PARTY. 

For the contracted party, on the other hand, there is a duty to perform the services properly, within the prescribed period, diligently and with the

Use of qualified labor.

Other duties can be established according to the type of use of the equipment, such as the confidentiality clause, which can be set to protect the privacy and security of the contracting party when accessing data recorded on some machines.

Every contract must follow basic rules and requirements that sometimes on the internet are outdated, as the models offered are generic and do not represent what is specific in the contractual relationship, which is unique.
Therefore, the contract is indicated to be made by a notary or lawyer, who knows exactly what are the mandatory clauses it must have.

Maintenance contract

Amount and payment method

In this clause, special attention should be paid to its wording, as it will allow the calculation of costs related to the service and the form of billing will be defined.

The costs, the form of payment (in cash, installments, by checks, bank deposits or credit cards), due date and method of calculating the fine and interest for late payment must be stated.

Readjustment

This clause must be explained under which index of inflation adjustment the contract will be readjusted periodically. 

It is important to define this index for calculation purposes in the event of an extended term of the contract, which may be extended by means of a contractual amendment.

Effective Term and Contract Termination

Term refers to the contracted period and termination refers to the end of the contract.

Thus, in this field, the term for contracting the services and how to proceed in case of contract termination is defined.

When defining the termination procedure, the deadline for communication, the method of calculating the amount of the fine in the event of unreasonable termination and how the termination will occur must be clarified. 

The definition of the deadline for communicating the termination of the contract must take into account the frequency of maintenance and the costs involved. Usually, quarterly, semiannual or annual deadlines are defined by the parties.

For the good execution of maintenance services, advantages can be offered to ensure customer loyalty, such as cost reduction and availability of more services in case of contracting for an extended period.

Some companies may opt for the automatic extension of the contract and the customer must be aware of this hypothesis.

Automatic extension generally takes place if there is no notice to the contrary by the customer or the submission of a new contract within thirty days before the original termination or extension.

All these issues must be stated clearly and objectively to avoid inconvenience in the future.

Forum

Forum is the place where the legal demands related to the submitted contractor will be discussed.

Thus, in this field, the competence is defined from which issues relating to the contract will be discussed in case the judiciary needs to be sued.

The forum of official competence must be freely chosen to meet the needs of both parties involved. 

In this choice, it is recommended to opt for the place where the service is provided as it is easier to produce related evidence discussed in a lawsuit.

Indication of place, date and signatures

In this place of the contract, the place and date of the signed business must be defined and the identity of the parties to the contract must be guaranteed. 

Without these specifications, any requirement involving the fulfillment of the obligations described in the document is fulminated.

For this reason, the following should be placed in the document:

  • local;
  • date of conclusion of the contract;
  • sign the present: 
  • signatures of the contracting party and the contracted party, with notarized signature;
  • signatures of two witnesses and registration of their identification documents.  

Every contract must follow basic rules and requirements that sometimes on the internet are outdated, as the models offered are generic and do not represent what is specific in the contractual relationship, which is unique.
Therefore, the contract is indicated to be made by a notary or lawyer, who knows exactly what are the mandatory clauses it must have.

Maintenance contract

How to proceed after signing the contract?

After filling out and downloading the Maintenance Contract file, in word or PDF format, printing and collecting the signatures, it is important to go to a notary office to check the credibility of the document.

As is well known, the infamous “ drawer contract ” has no legal value and going to it can guarantee the protection of your assets.

The documents required for contracting and notarization of the contracting parties must be authenticated at the Notary Public's Office.

With this procedure, the formality of the contract necessary for the requirement to fulfill the contractual obligations is guaranteed. 

Carrying out this step ensures, for example, that in the event of a lawsuit being filed, less complex, quicker lawsuits that seek immediate fulfillment of contractual obligations can be opted for. 

What if the Maintenance contract is terminated?

In case of contractual termination before the final term of the term of the contract, the parties must proceed to the termination in the manner indicated by the contractual instrument.

A period of thirty days is normally indicated for communicating the intention to terminate the contracted party or immediate termination in case of default.

The amount of the contractual fine in the event of unreasonable termination must be previously stipulated and stated in a clear and legible manner and may be fixed in proportion to the end of the term of the contract.

It is worth noting that when there are factors beyond the control that prevent the performance of the contract, the payment of a fine may be waived and they are called just cause, such as acts of God or force majeure. 

How to renew the Maintenance Contract?

To continue providing maintenance services, the company must prepare an addendum to the contract before the end, if there is no automatic extension clause.

The additive term must contain:

  • personal data of the contracting parties;
  • information about the original contract;
  • clause number referring to the time period that will be changed;
  • index that will serve as a parameter for periodic price readjustment.

 In the event of other changes, other related clauses must be indicated or new contractual clauses added, if applicable.

By means of this amendment, therefore, the new conditions of the contract that underwent readjustment are defined in a clear and secure manner, as instructed to be done in the original contract.

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