Maintenance Agreements

Maintenance agreements are pacts signed by two parties, the contractor (maintainer) and the appointing party. Through such an agreement, documentation of the fixed fee charged by the contractor in lieu of periodic maintenance of the goods, equipments, buildings, etc is accomplished. The contractor and the employer may vary accordingly from agreement to agreement but the basic motto behind such agrrements remains the same.

The purposes behind such agreements are as follows:

  • To keep the record of the various assets of the client under maintenance.
  • Check the performance of the routine maintenance job done by the contractor.
  • Keep tracks of the value of the property taking in account its maintenance cost.
  • The temporary custody of the property and its ownership, all remains official leading to no future complexities.

There are a few factors that should be considered while making maintenance agreements:

  • Transparency of the agreement should be maintained by highlighting the temporary period of maintenance and the fees charged with mutual consent from both the parties.
  • The acceptability of the agreement can be increased by clearly stating that the maintaining party has no legal authority over the property; they are just in charge of it temporarily.

The importance of the maintenance agreement is inevitable leading to a comprehensive way of property maintenance felicitating economic transactions.

Category: Maintenance Agreements

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