Service / Maintenance Contracts Guide And Downloadable Sample Agreement

IT
IPVM Team
•Published Aug 18, 2016 14:32 PM

This guide provides in-depth recommendations for service / maintenance and a sample service agreement that integrators can edit and customize for their needs.

It includes:

  • List of 20+ standard inclusion terms
  • List of 9 standard exclusion terms
  • Segmenting first year warranty vs service agreements
  • Listing covered devices
  • Denoting coverage and response times
  • Setting pricing and terms
  • Downloadable / customizable sample service agreement (Word Doc)

Service ********* ********

******* ********** **** *** ******** *** benefit ** *********** ***** ** **** their ****** ** *** *******. **** provide *** ******* ************ *********** *** software *******, *** ****** *** ****** from *** ******** ** **** ***** system ***********.

First **** ******** **. ******* *********

**** ***** ** ** *********, ** possibly ******** ** **** ** * bid ** ***** ***********, ** ***** a *-**** ******** ** *** ********* systems. ***** ** ***** ********** ****, but *** ********* ******** ** ***** failures ** *********** (**: * ***** that *** ********** **********), ** ******** product ********.

********** ***** **** ******** ***** ** 8A-6P ****** ** ****** ***** ******* Agreements *** **** ********.

*** * **** ******** **** ********* not ***** ****** **** ********** *******, cleaning ******/********/*********, ** ******** ***** ** cameras.

* ******* ********* *** ********* ** sold ** ******** ** ********* * 1 **** ********. ** **** ***** the ********** *** ****** ** ******** the ******** *** *** ***** **** to ******* *** *** **** **** some ***** ******* ***** ***** ******* be ******* ****** ******** ******** *****.

Standard **********

***** ***** ** *********** ** **** thing ** * "********" ******* *********, there *** **** ***** **** *** frequently ****.

************ *********** ** ********* ******** ****** otherwise ********* **** **********.

************ *********** *** *****:

  • ***** ****** *** ******** *** ***** for ****** *****
  • ****** ****** **** *** ***** ******** and ******* **********
  • ******* ********** ******** ******* *** *******
  • ***** ****** *** ******** ** ****** fasteners *** ******, **** ** ****/*********
  • ***** ****** *** ********** *** ***** of **********, ****** ** ***** **********
  • ***** ******** ******** **** ** ****/****, recording ********,
  • ******** ****** ******** ** ***** **** daytime *** ********* ** ****** ********* is ******* *** ****** *** ********** to ********
  • ***** *** ******* ******** **** ** cut ******* *** ****** *********
  • ******* *** ****** ******* ** **********
  • ***** *** ******* *********** ** ********* (filters, *********, ***.)

************ *********** *** ****** *******:

  • ***** ***** ******* ** ****** ******* system *** ****** ********* (**: ***** and ****** ******* *******)
  • ***** **** *** ***** ** ****** doors, **** *****, ** ***** ****** and ***** ** ********* ** ******** personnel ** ***********
  • ***** **** ******** *** *********** **** have *** **** **** *** ** least ** **** ** ***** *********** that *** ** ******** *** ************ and ***** ** ********* ** ******** personnel ** ***********, *** ******/********** ***** credentials ** **********
  • ****** ****** ********* ** ********* ****** doors
  • ****** ****** ******** **** ***** ****/******** codes ** **********

*******/******* *****:

  • ********* ***** *******
  • ********** ****** ** ****** ***** ** view (********* **** * ***** ** 1-2 ***** *** **** **** *** camera)
  • ********* ****** ******* *******
  • ******* ******** ******** ** *** ******** delivered ** **** ** ******** ********

Standard **********

***** ************ ******** ** **** ** the ******** *** ** *******, *** are ********* ***** ** ******* *** integrator **** ******* *****, ****** ******* by *********, ** ********* ***** * customer ***** ******* ** **** ********* of *** *********.

  • ***** *** ****** ******, *****, ******, scaffolding
  • ********-******* ** ********* ********* ** *** DIY **********
  • ******* *** ***** ******* ******
  • ********* ******* ** **** ** *** - ********, ******, ******, *****, ***.
  • ********* ******* ** *******, *****
  • ********* ******* ** **********, ****** ** intentional ****
  • *** ********* *** *********** ** **** agreement ** *********
  • ********* ***** **** * (********* *-* years) ** ** ****** ********* ** manufacturer

List ** ******* *******

******* ******* ** **** ** *** agreement ****** ** ************ ****** ** avoid ****** *********. ** **** *****, for **** ***** *******, ** *** not ** ********* ** ******** **** a ******** **** *** ** *** include **** ***** (*******, ***********) *** brands/models ** ******* *** ***** ******** covered.

Coverage *** ******** *****

******* ********** ***** ******* **/* ********, including ********. ** *** ** *** currently **** ** **-**** *********** *** techs ** **** ****** ** ********* to *** ********* ** ** ****** service ***** *** ******** *******.

** ******* ******** **** ** *-* hours ** ******, **** * ********** for ** **-**** **** ****** *-* hours ***** ******* *************** *** ***************, and * ***** ********** **** ** 24-48 *****. ********** ********** ***** **** often ******* *** ********** ** ******** their *** ****** *********.

Inventory ** ***** *********

** ***** ** ****** ******* ******* can ** **** *********** ******* **** a ****** ***** *********** ****** **** spare *******, *******/**** *** ****** ******* equipment ** ***** *** *********.

*** ***** ********* * ********* *** be ***** *** ******** ****** ** be **** ** *** ********* ******** to ****** ******/****** ****** ** **-**** technicians. ** **** ** **** *** equipment ****** ** *** ******** **** should ** **** ** * ****** room ** ******* *** ******* ********** as ******** ** *** **********.

*********** *** ********* **** ******* ********** will ******* **** ************* ** * smaller ****** ** *************, ** **** spares ********* *** ** **** ** lower ******.

Other ***** ******* **** ******* **********

******** ***** *** ** ******* ** a ******** *** ********* **** **** active ******* **********. ******** *** ****** expansion *** **** ** ********** **** an ****** ******* *********, *** **** typically ******* **** ******** ** ************* added ** *** *********, *** ***** at **** ********* ***** **** *** contract ** ** *** *******.

Service ********* ******* *** *****

********* * ********** ** ***** ****** price ** **** ** *** ****** price ** * *********** *********. *-**% is ****** *** * ***** ********* that ******* **** ** ****** ********** maintenance *** ****-********-*** ******. ***** ** high ** **% ** ****** ***** are **** *** ********** **** ***** 24x7x365 ******** ** *** ******.

***** *** ********* * **** *******, though ****** ***** ** *-* ***** should ** *******, *********** **** * small ********, ** ****** * ****-**** agreement ** *****.

***** ********* ****** ** ********, *** noted ** *** ********. *********** ****** with *********** ***** ******** *******. **** ****** *** ********* cost ** ***** *** ********* **** time.

Other ******** ** ******* **********

*** ****** ************ *********** ****** ******* a **** *********** ** *** ********** in ***** ** **** ********. **** offers ** *********** ** ****** *** changes ** ***** ********** **** **** occurred ** *** **** **** *** propose ****** ************ ** ******** ** applicable.

Downloadbale ****** *********

**** *** ******* * ****** ******* agreement** *** ** * ******** *** creating **** *** ******* **********. *** are **** ** **** *** *** this *** **** *******.

**** ********** ********* **** **** * lawyer ***/** ********** ** **** ****** that *********** ***** ********** ************ ****** service ********* *** **********. ** **********, contract ******* *** ************ ***** *** vary ** ***** ** *******.

Comments (21)
UI
Undisclosed Integrator #1
•Aug 19, 2016

“Typically a percentage of total system price is used as the annual price of a maintenance agreement. 8-10% is common for a basic agreement that focuses more on annual preventive maintenance and next-business-day repair.

  • Replace any failed devices or components
  • Check and replace consumables as necessary (filters, batteries, etc.)”

Couple questions from a service newbie about the above points. First, what items are considered part of total system price? Just the hardware, install of hardware and programming? Not cable and conduit I assume?

What outside of preventative maintenance is covered typically with the 8-10%? Replacement hardware and labor (assuming hardware is out of warranty)? Or just labor?

(1)
Avatar
Armando Perez
•Aug 19, 2016
Hoosier Security and Security Owners Group • IPVMU Certified
In reply to Undisclosed Integrator #1

in my willage, total means total.

SW
Steven Wirz
•Aug 22, 2016

Outstanding, thank you. I remember a few discussions about this awhile back but this really condenses things for us REALLY small guys.

Avatar
Brian Karas
•Aug 22, 2016
IPVM
In reply to Steven Wirz

Glad it was helpful.

If anyone implements a new service agreement program I'd love to hear details about the process, customer take rates, etc.

(1)
UI
Undisclosed Integrator #2
•Sep 15, 2016

We have one with very similar language but more of a deep dive which includes explanations and scenarios of covered vs. non covered. And obviously we include detailed information on how to initiate a Maintenace request, how we monitor plus what I'll just simply call our competitive edge with our contracts and how we arrive at the cost.

Since inception 2 years ago, Most have purchased them and those that haven't wished they did. For those that didn't it wasn't because they didn't think they needed it, it was because of some higher up finance person who simply denies all Maintenace contracts. That being said, we have yet to sell a "contract" to someone who we haven't done the full installation for. Haven't tried much but we have had the opportunity and they haven't gone anywhere. Probably because it's hard to value an existing install and meet that competitive price point.

The biggest problem we run into is customers who don't give us access to their network to troubleshoot remotely, this really needs to double the cost of a Maintenace contract but good luck with that. I just make it clear that you can still have your contract but your response time is best effort.

Now if only the devices were smart enough to not keep alarming for the same errors consistently. It's certainly not like monitoring an intrusion alarm when all you have is email and uneducated devices sending notices for everything. Our service tracker will probably be more complex with all the rule routing than the systems themselves.

(1)
UI
Undisclosed Integrator #3
•Dec 30, 2016

Brian, I know this thread is a bit old but I wanted to know what the general consensus is on out of warranty equipment coverage.

1. Do Integrators offer to cover "anything" that breaks?

2. Is this marketed as "Extended Warranty" coverage?

3. What is the cost of this specific coverage on average?

4. How do you handle end of life products? Do you keep offering coverage forever?

Thanks.

Avatar
Brian Karas
•Dec 30, 2016
IPVM
In reply to Undisclosed Integrator #3

It may be a few months old, but should still be relevant :)

Hopefully some other integrators can chime in with answers to your questions.

From the conversations I had in researching the post, I would say that covering "anything" is more of an exception case, and is why the recommendation to include a specific list of covered devices is recommended.

End of life product coverage may depend on availability of spares and equivalent replacements. Covering a fairly standard 1080p camera may not be a big issue, if it fails there should be plenty of drop-in replacement options. Covering something like a bluetooth-enabled thermal license plate camera (obviously a made-up example) might be more risky because you won't likely find an easy alternative if the unit fails. For that situation it may be best to identify esoteric equipment upfront and outline a failure response plan (e.g.: if the bluetooth thermal license plate camera fails, it will be replaced with product X, which will also require upgrading software to Version Y, at an estimated cost of Z).

JC
Jason Cruz Santos
•Feb 25, 2019

Hi,

Great article!!

Can i just pay for the sample agreement? Im just a one man team.

 

JH
John Honovich
•Feb 25, 2019
IPVM
In reply to Jason Cruz Santos

Jason, all members can download the sample agreement - it's here https://ipvm-uploads.s3.amazonaws.com/uploads/4093/5b85/SampleServiceAgreement.docx

(1)
JC
Jason Cruz Santos
•Feb 25, 2019
In reply to John Honovich

Thank you John.

U
Undisclosed #4
•Oct 07, 2019

very great article

thanks alot

RB
Rick Bolda
•Dec 19, 2019

Really this agreement is not comprehensive I can't believe this is what you're providing not good a waste

(1)
(1)
Avatar
Brian Rhodes
•Dec 19, 2019
IPVMU Certified
In reply to Rick Bolda

Hello Rick: What should be added?

(1)
UI
Undisclosed Integrator #5
•Dec 23, 2020

Not sure that 2 hour response times is either possible or even practical. We have technicians sitting in traffic for over 3 hours to get to some service calls. And what about service schedule backlog? Is our company the only one who are scheduling service calls 3-4 days out on the calendar? We are in North Jersey and we do calls in the city that can take till noon just to get there. We normally charge a customer a premium in an annual service contract for a 4 hour response time on emergency calls and all others go to the best time slot we have on our calendar. Does IPVM have any data on how far out integrators are typically on their service schedules? Id be interested in seeing that data.

(1)
JH
Jay Hobdy
•Dec 30, 2020
IPVMU Certified
In reply to Undisclosed Integrator #5

Funny. A colleague ( a member here) messaged me and told me about a scheduling plug in. By the end of the conversation we concluded his company was taking calls, and scheduling techs within a few hours, while my company schedules over the next 3 to 4 days.

We currently have calls scheduled 3 to 5 days out.

UM
Undisclosed Manufacturer #6
•Dec 30, 2020
In reply to Jay Hobdy

Service times can be a selling point, call response offerings can be additional revenue and provide an option to upsell.

Some companies give away too many calls for many reasons. I knew a security company that only provided service Mon-Fri, 8:00 to 5:00 and grew well in a small area.

It takes all kinds!

Avatar
Brian Selltiz
•Dec 30, 2020
IPVMU Certified
In reply to Jay Hobdy

Jay, any chance you can share the info on your scheduling plug in? I am on the lookout for a better solution than we use now.

MM
Michael Miller
•Jan 01, 2021
In reply to Brian Selltiz

TimeZest — Scheduling Automation for ConnectWise Manage

We have 4 hour response times for clients so we are always looking for the most efficient was to schedule our service team.

UI
Undisclosed Integrator #5
•Jan 01, 2021
In reply to Jay Hobdy

So do we. 3-5 days out seems like our routine so it seems a little off that we are all having conversations about 2-4 hours like its an every day thing.

MB
Matt Buyukozer
•Jun 02, 2021

Are you still charging hourly labor rate or trip charge for service calls or is that included in the monthly price?

UI
Undisclosed Integrator #7
•Jan 30, 2023

Since this is 6.5 years old is there any updated contract / terms and conditions templates? The market has drastically changed esp with VSaaS. I figured there are some new items that need to be addressed.

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