Service / Maintenance Contracts Guide And Downloadable Sample Agreement

By: IPVM Team, Published on Aug 18, 2016

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)

**** ***** ******** **-***** recommendations *** ******* / maintenance *** * ****** service ********* **** *********** can **** *** ********* for ***** *****.

** ********:

  • **** ** **+ ******** inclusion *****
  • **** ** * ******** exclusion *****
  • ********** ***** **** ******** vs ******* **********
  • ******* ******* *******
  • ******** ******** *** ******** times
  • ******* ******* *** *****
  • ************ / ************ ****** service ********* (**** ***)

[***************]

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

******* ********** **** *** customer *** ******* ** predictable ***** ** **** their ****** ** *** running. **** ******* *** regular ************ *********** *** software *******, *** ****** the ****** **** *** customer ** **** ***** system ***********.

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

**** ***** ** ** customary, ** ******** ******** as **** ** * bid ** ***** ***********, to ***** * *-**** warranty ** *** ********* systems. ***** ** ***** warranties ****, *** *** generally ******** ** ***** failures ** *********** (**: a ***** **** *** terminated **********), ** ******** product ********.

********** ***** **** ******** times ** **-** ****** to ****** ***** ******* Agreements *** **** ********.

*** * **** ******** will ********* *** ***** things **** ********** *******, cleaning ******/********/*********, ** ******** focus ** *******.

* ******* ********* *** therefore ** **** ** addition ** ********* * 1 **** ********. ** some ***** *** ********** may ****** ** ******** the ******** *** *** first **** ** ******* for *** **** **** some ***** ******* ***** would ******* ** ******* during ******** ******** *****.

Standard **********

***** ***** ** *********** no **** ***** ** a "********" ******* *********, there *** **** ***** that *** ********** ****.

************ *********** ** ********* annually ****** ********* ********* more **********.

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

  • ***** ****** *** ******** and ***** *** ****** focus
  • ****** ****** **** *** error ******** *** ******* conditions
  • ******* ********** ******** ******* and *******
  • ***** ****** *** ******** to ****** ********* *** secure, **** ** ****/*********
  • ***** ****** *** ********** for ***** ** **********, damage ** ***** **********
  • ***** ******** ******** **** as ****/****, ********* ********,
  • ******** ****** ******** ** video **** ******* *** nighttime ** ****** ********* is ******* *** ****** are ********** ** ********
  • ***** *** ******* ******** with ** *** ******* for ****** *********
  • ******* *** ****** ******* or **********
  • ***** *** ******* *********** as ********* (*******, *********, etc.)

************ *********** *** ****** control:

  • ***** ***** ******* ** access ******* ****** *** proper ********* (**: ***** and ****** ******* *******)
  • ***** **** *** ***** of ****** *****, **** doors, ** ***** ****** and ***** ** ********* of ******** ********* ** appropriate
  • ***** **** ******** *** credentials **** **** *** been **** *** ** least ** **** ** other *********** **** *** be ******** *** ************ and ***** ** ********* of ******** ********* ** appropriate, *** ******/********** ***** credentials ** **********
  • ****** ****** ********* ** emergency ****** *****
  • ****** ****** ******** **** local ****/******** ***** ** applicable

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

  • ********* ***** *******
  • ********** ****** ** ****** field ** **** (********* with * ***** ** 1-2 ***** *** **** time *** ******)
  • ********* ****** ******* *******
  • ******* ******** ******** ** new ******** ********* ** part ** ******** ********

Standard **********

***** ************ ******** ** part ** *** ******** can ** *******, *** are ********* ***** ** protect *** ********** **** extreme *****, ****** ******* by *********, ** ********* where * ******** ***** attempt ** **** ********* of *** *********.

  • ***** *** ****** ******, lifts, ******, ***********
  • ********-******* ** ********* ********* or *** *** **********
  • ******* *** ***** ******* issues
  • ********* ******* ** **** of *** - ********, storms, ******, *****, ***.
  • ********* ******* ** *******, Pests
  • ********* ******* ** **********, misuse ** *********** ****
  • *** ********* *** *********** at **** ********* ** initiated
  • ********* ***** **** * (typically *-* *****) ** no ****** ********* ** manufacturer

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

******* ******* ** **** of *** ********* ****** be ************ ****** ** avoid ****** *********. ** some *****, *** **** large *******, ** *** not ** ********* ** maintain **** * ******** list *** ** *** include **** ***** (*******, workstation) *** ******/****** ** cameras *** ***** ******** covered.

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

******* ********** ***** ******* 24/7 ********, ********* ********. If *** ** *** currently **** ** **-**** arrangement *** ***** ** will ****** ** ********* to *** ********* ** to ****** ******* ***** get ******** *******.

** ******* ******** **** of *-* ***** ** common, **** * ********** for ** **-**** **** within *-* ***** ***** initial *************** *** ***************, and * ***** ********** time ** **-** *****. Guaranteed ********** ***** **** often ******* *** ********** to ******** ***** *** spares *********.

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

** ***** ** ****** covered ******* *** ** made *********** ******* **** a ****** ***** *********** should **** ***** *******, servers/NVRs *** ****** ******* equipment ** ***** *** inventory.

*** ***** ********* * provision *** ** ***** for ******** ****** ** be **** ** *** customers ******** ** ****** faster/easier ****** ** **-**** technicians. ** **** ** done *** ********* ****** at *** ******** **** should ** **** ** a ****** **** ** cabinet *** ******* ********** as ******** ** *** integrator.

*********** *** ********* **** service ********** **** ******* from ************* ** * smaller ****** ** *************, so **** ****** ********* can ** **** ** lower ******.

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

******** ***** *** ** offered ** * ******** for ********* **** **** active ******* **********. ******** for ****** ********* *** also ** ********** **** an ****** ******* *********, but **** ********* ******* that ******** ** ************* added ** *** *********, and ***** ** **** agreement ***** **** *** contract ** ** *** renewal.

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

********* * ********** ** total ****** ***** ** used ** *** ****** price ** * *********** agreement. *-**% ** ****** for * ***** ********* that ******* **** ** annual ********** *********** *** next-business-day ******. ***** ** high ** **% ** system ***** *** **** for ********** **** ***** 24x7x365 ******** ** *** issues.

***** *** ********* * year *******, ****** ****** terms ** *-* ***** should ** *******, *********** with * ***** ********, to ****** * ****-**** agreement ** *****.

***** ********* ****** ** expected, *** ***** ** the ********. *********** ****** with *********** ***** ******** *******. **** ****** the ********* **** ** labor *** ********* **** time.

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

*** ****** ************ *********** checks ******* * **** opportunity ** *** ********** in ***** ** **** customer. **** ****** ** opportunity ** ****** *** changes ** ***** ********** that **** ******** ** the **** **** *** propose ****** ************ ** upgrades ** **********.

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

**** *** ******* * sample ******* *********** *** ** * template *** ******** **** own ******* **********. *** are **** ** **** and *** **** *** your *******.

**** ********** ********* **** with * ****** ***/** accountant ** **** ****** that *********** ***** ********** requirements ****** ******* ********* and **********. ** **********, contract ******* *** ************ terms *** **** ** state ** *******.

Comments (11)

Undisclosed Integrator #1

08/19/16 01:10pm

“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?

Avatar

Armando Perez

IPVMU Certified | In reply to Undisclosed Integrator #1 | 08/19/16 03:44pm

in my willage, total means total.

Steven Wirz

08/22/16 03:05pm

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

IPVM | In reply to Steven Wirz | 08/22/16 03:08pm

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.

Undisclosed Integrator #2

09/15/16 03:28am

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.

Undisclosed Integrator #3

12/30/16 07:40pm

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

IPVM | In reply to Undisclosed Integrator #3 | 12/30/16 08:50pm

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).

Jason Cruz Santos

02/25/19 03:17pm

Hi,

Great article!!

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

 

John Honovich

IPVM | In reply to Jason Cruz Santos | 02/25/19 03:18pm

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

Jason Cruz Santos

In reply to John Honovich | 02/25/19 03:19pm

Thank you John.

Undisclosed #4

10/07/19 08:38am

very great article

thanks alot

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Integrated IR Camera Usage Statistics 2019 on Oct 21, 2019
Virtually every IP camera now comes with integrated IR but how many actually make use of IR or choose 'super' low light cameras without IR? In...
Securing Access Control Installations Tutorial on Oct 17, 2019
The physical security of access control components is critical to ensuring that a facility is truly secure. Otherwise, the entire system can be...
Access Control Course Fall 2019 - Last Chance on Oct 17, 2019
Register Now - Fall 2019 Access Control Course. Thursday, October 17th is the last day to register. IPVM offers the most comprehensive access...
IPVM Camera Calculator User Manual / Guide on Oct 16, 2019
Learn how to use the IPVM Camera Calculator (updated for Version 3.1). The guide below includes instructions, images, gifs, and videos...
Altronix Claims Tango 'Eliminates Electricians' on Oct 15, 2019
Power supply provider Altronix claims its new Tango power supply 'eliminates the need for an electrician, dedicated conduit and wire runs'. In...
Pelco CEO Out, New CEO Found on Oct 15, 2019
Just 2 months after Pelco was sold, Pelco's CEO is out, with Pelco bringing in an outside President and searching for a new CEO from the industry,...
Camera Focusing Tutorial on Oct 14, 2019
Camera focus is fundamental to quality imaging. Mistakes can significantly reduce details, making cameras less effective. In this guide, we...
Last Chance - Register Now - October 2019 IP Networking Course on Oct 10, 2019
Last Chance - Register Now - Fall 2019 IP Networking Course. The course starts next week. This is the only networking course designed...
HID Fingerprint Reader Tested on Oct 09, 2019
HID has released their first access reader to use Lumidigm optical sensors, that touts it 'works with anyone, anytime, anywhere'. We bought and...
Camera Cable Whip Guide on Oct 02, 2019
Cable whips are one of integrator's least favorite camera features but seem to be unavoidable, now commonplace on dome, turret, and bullet cameras...

Most Recent Industry Reports

Government-Owned Hikvision Wants To Keep Politics Out Of Security on Oct 21, 2019
'Politics' made Hikvision the goliath it is today. It was PRC China 'politics' that created Hikvision, funded it, and blocked its foreign...
Integrated IR Camera Usage Statistics 2019 on Oct 21, 2019
Virtually every IP camera now comes with integrated IR but how many actually make use of IR or choose 'super' low light cameras without IR? In...
Alarm Veteran "Demands A Criminal Investigation" Of UL on Oct 18, 2019
The Interceptor's Project pressure against UL continues to rise. Following Keith Jentoft's allegation that "UL Has Blood On Their Hands", Jentoft...
Camect "Worlds Smartest Camera Hub" Tested on Oct 18, 2019
Camect is a Silicon Valley startup that claims the "Smartest AI Object Detection On The Market", detecting not only people and vehicles, but...
Hikvision Global News Reports Directory on Oct 17, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
Camera Calculator V3.1 Release Improves User Experience on Oct 17, 2019
IPVM has released a new version of our Camera Calculator, V3.1, with significant user experience improvements, a new development plan, and an...
Securing Access Control Installations Tutorial on Oct 17, 2019
The physical security of access control components is critical to ensuring that a facility is truly secure. Otherwise, the entire system can be...
Access Control Course Fall 2019 - Last Chance on Oct 17, 2019
Register Now - Fall 2019 Access Control Course. Thursday, October 17th is the last day to register. IPVM offers the most comprehensive access...
US DoD Comments on Huawei, Hikvision, Dahua Cyber Security Concerns on Oct 16, 2019
A senior DoD official said the US is "concerned" with the cybersecurity of Hikvision, Dahua, and Huawei due to "CCP" (China Communist Party)...
Pelco Sarix Pro3 Camera Tested on Oct 16, 2019
Pelco has released their Sarix Professional Series 3 cameras, claiming "more security detail in challenging scenes with excellent low light and...

What IPVM Is

The world's leading authority on video surveillance, with 200,000+ visits monthly.

  • Articles on cameras, video analytics, VMS, and trends
  • Tests showing actual performance and problems
  • Courses in surveillance, access control, etc
  • Camera Calculator for designing systems

Dedicated To Independence

We're dedicated to staying independent and objective. We're the only industry source to refuse any and all advertisements, sponsorship, and consulting from manufacturers. Why?