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 (13)

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?

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.

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.

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

Rick Bolda

12/19/19 04:28pm

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

Brian Rhodes

IPVMU Certified | In reply to Rick Bolda | 12/19/19 04:33pm

Hello Rick: What should be added?

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

2020 Camera Book Released on Jan 10, 2020

This is the best, most comprehensive security camera training in the world, based on our unprecedented testing. Now, all IPVM PRO Members can get...

2020 Access Control Book Released on Dec 19, 2019

This is the best, most comprehensive access control book in the world, based on our unprecedented research and testing has been significantly...

Verkada Salesman: IPVM "Stuck In A The Stone Age" on Apr 25, 2019

Verkada is 'tackling dinosaurs' and battling those, like IPVM, who are 'stuck in a the stone age'. Verkada's recent sales recruiting promotion...

Manufacturer Favorability Guide 2019 on Jun 12, 2019

The 259 page PDF guide may be downloaded inside by all IPVM members. It includes our manufacturer favorability rankings and individual...

Closed Cloud Cameras Trashed on May 13, 2019

When you buy a camera, do you own it? Not anymore. In the world of closed cloud cameras, you may think you are buying a camera but all you are...

Verkada Favorability Results 2019 on May 29, 2019

Verkada has taken the industry by storm with the fastest growing video surveillance sales organization ever and a half billion dollar valuation....

Dumber Techs, Bad Box Movers, Says Australian Distributor on Jun 10, 2019

Techs today are "dumber" than they used to be, despite better education and training and that makes a typical day "frustrating" for one...

Security Dealer 'Social Media Contractor' Program on Jun 25, 2019

A $20,000 video surveillance system can be yours for free if you are willing to post on social media about the security dealer. Good deal, bad...

Beware African 50,000 IP Camera Contract Scam on Jul 12, 2019

A “Nigerian Prince” scam for the video surveillance market is going around. You, or at least we, could be lucky enough to be the single bidder for...

3 Weeks Later, Honeywell Still Cannot Say Whether They Are Vulnerable To Dahua Wiretapping [Now Admits] on Aug 27, 2019

The Dahua wiretapping vulnerability and Dahua's decision to delay disclosing it until IPVM inquired underscored problems with cybersecurity and...

Most Recent Industry Reports

Video Surveillance 101 Course - Last Chance on Feb 20, 2020

This is the last chance to join IPVM's first Video Surveillance 101 course, designed to help those new to the industry to quickly understand the...

Cheap Camera Problems at Night on Feb 19, 2020

Cheap cameras generally have problems at night, despite the common perception that integrated IR makes cameras mostly the same, according to new...

Milestone Launches Multiple Cloud Solutions on Feb 18, 2020

Milestone is going to the cloud, becoming one of the last prominent VMSes to do so. Milestone is clearly late but how competitive do these new...

Video Surveillance Architecture 101 on Feb 18, 2020

Video surveillance can be designed and deployed in a number of ways. This 101 examines the most common options and architectures used in...

UK Stands Behind Hikvision But Controversy Continues on Feb 18, 2020

Hikvision is exhibiting at a UK government conference for law enforcement, provoking controversy from the press, politicians, and activists due to...

IronYun AI Analytics Tested on Feb 17, 2020

Taiwan startup IronYun has raised tens of millions for its "mission to be the leading Artificial Intelligence, big data video software as a service...