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December 7, 2022
When managing a building or facility, understanding the different types of facility maintenance contracts available is crucial for ensuring effective and cost-efficient maintenance. Whether you’re handling simple repairs or ongoing upkeep, choosing the right maintenance contract can make all the difference in how smoothly your building operates.
In this guide, we’ll explore the various types of maintenance services, the different contracting methods you can choose from, and how to ensure you have the necessary documents in place to successfully complete your project.
Types of Facility Maintenance Work
When it comes to facility maintenance, two main categories of services are typically offered: as-needed services and ongoing services. Each has its own benefits, depending on your building’s needs.
1. As-Needed Services
As-needed maintenance services are typically reactive and involve work on discrete projects that are needed sporadically. These services might include:
- Roof repairs
- Façade painting
- Parking lot striping
- HVAC repairs
- Small building projects
These contracts are ideal for building owners who need help with specific, one-time repairs or improvements.
2. Ongoing Services
Ongoing maintenance services are proactive and scheduled regularly to maintain a building’s systems and appearance. Examples include:
- HVAC system maintenance
- Cleaning services
- Lawn care
- Snow removal
These contracts are designed for facilities that require continuous upkeep to ensure smooth operations and prevent larger, costly repairs.
Contracting Methods for Facility Maintenance
Choosing the right method of contracting is vital for setting the terms of your maintenance work. There are two common approaches: Master Agreements and Stand-Alone Agreements.
Master Agreement Method
A Master Agreement is a framework contract designed for situations where multiple maintenance tasks will need to be performed over time. This type of agreement is ideal when the full scope of maintenance work is not predetermined and may change.
Benefits of a Master Agreement:
- Enables quick issuance of work orders for different tasks without renegotiating terms.
- Often used when a contractor will service multiple properties or perform work in phases.
- Includes standard terms and conditions such as roles and responsibilities, payment schedules, and insurance requirements.
How Work Orders Fit In: Each specific task (e.g., HVAC repair or lawn care) is outlined in a separate work order under the Master Agreement. The work order specifies:
- Scope of work
- Timeline
- Payment terms
- Special considerations, such as insurance or additional terms
The Master Agreement, combined with the work order, forms a complete contract ensuring the contractor performs the required work.
Stand-Alone Agreement Method
A Stand-Alone Agreement is a one-time contract used for either as-needed or ongoing maintenance services. Unlike the Master Agreement method, a Stand-Alone Agreement does not require separate work orders for each task.
When to Use a Stand-Alone Agreement:
- When you do not need recurring services.
- When the scope and terms of the work are clear and can be handled in one contract.
This approach simplifies the process for one-time or less complex maintenance projects.
Supporting Documents for Facility Maintenance Contracts
When drafting a facility maintenance contract, there are several documents you may need to ensure the project runs smoothly. These supporting documents can help track progress, adjust for unforeseen changes, and ensure payments are processed properly. Key documents to consider include:
- Change order forms
- Invoice templates
- Certificates of insurance
- Status reports
Having these documents in place helps ensure both parties understand the scope of work, payment schedules, and insurance requirements.
Choosing the Right Facility Maintenance Contract for Your Business
Selecting the ideal contract depends on several factors, including the type of work to be done, the contractor’s availability, and whether the services will be needed on an ongoing basis.
Here’s a quick overview of how to approach your decision:
- As-needed services: Choose a Stand-Alone Agreement for one-off projects like repairs or improvements.
- Ongoing services: A Master Agreement paired with work orders is often best when regular maintenance is needed over time.
No matter what type of contract you choose, careful planning and understanding the scope of work will help you set clear expectations and avoid confusion throughout the project.
Final Thoughts
Finding the right maintenance contract is an essential step in ensuring your facility runs smoothly and efficiently. By evaluating the types of maintenance work, choosing the appropriate contracting method, and preparing the necessary documents, you’ll be setting your project up for success.
AIA Contract Documents has provided this article for general informational purposes only. The information provided is not legal opinion or legal advice and does not create an attorney-client relationship of any kind. This article is also not intended to provide guidance as to how project parties should interpret their specific contracts or resolve contract disputes, as those decisions will need to be made in consultation with legal counsel, insurance counsel, and other professionals, and based upon a multitude of factors.