Service / Maintenance Contracts Guide And Downloadable Sample Agreement

Author: Brian Karas, 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)

**** ***** ******** **-***** *************** *** ******* / *********** *** a ****** ******* ********* **** *********** *** **** *** ********* for ***** *****.

** ********:

  • **** ** **+ ******** ********* *****
  • **** ** * ******** ********* *****
  • ********** ***** **** ******** ** ******* **********
  • ******* ******* *******
  • ******** ******** *** ******** *****
  • ******* ******* *** *****
  • ************ / ************ ****** ******* ********* (**** ***)

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

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

******* ********** **** *** ******** *** ******* ** *********** ***** to **** ***** ****** ** *** *******. **** ******* *** regular ************ *********** *** ******** *******, *** ****** *** ****** from *** ******** ** **** ***** ****** ***********.

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

**** ***** ** ** *********, ** ******** ******** ** **** of * *** ** ***** ***********, ** ***** * *-**** warranty ** *** ********* *******. ***** ** ***** ********** ****, but *** ********* ******** ** ***** ******** ** *********** (**: a ***** **** *** ********** **********), ** ******** ******* ********.

********** ***** **** ******** ***** ** **-** ****** ** ****** where ******* ********** *** **** ********.

*** * **** ******** **** ********* *** ***** ****** **** installing *******, ******** ******/********/*********, ** ******** ***** ** *******.

* ******* ********* *** ********* ** **** ** ******** ** providing * * **** ********. ** **** ***** *** ********** may ****** ** ******** *** ******** *** *** ***** **** to ******* *** *** **** **** **** ***** ******* ***** would ******* ** ******* ****** ******** ******** *****.

Standard **********

***** ***** ** *********** ** **** ***** ** * "********" service *********, ***** *** **** ***** **** *** ********** ****.

************ *********** ** ********* ******** ****** ********* ********* **** **********.

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

  • ***** ****** *** ******** *** ***** *** ****** *****
  • ****** ****** **** *** ***** ******** *** ******* **********
  • ******* ********** ******** ******* *** *******
  • ***** ****** *** ******** ** ****** ********* *** ******, **** of ****/*********
  • ***** ****** *** ********** *** ***** ** **********, ****** ** other **********
  • ***** ******** ******** **** ** ****/****, ********* ********,
  • ******** ****** ******** ** ***** **** ******* *** ********* ** ensure ********* ** ******* *** ****** *** ********** ** ********
  • ***** *** ******* ******** **** ** *** ******* *** ****** operation
  • ******* *** ****** ******* ** **********
  • ***** *** ******* *********** ** ********* (*******, *********, ***.)

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

  • ***** ***** ******* ** ****** ******* ****** *** ****** ********* (eg: ***** *** ****** ******* *******)
  • ***** **** *** ***** ** ****** *****, **** *****, ** other ****** *** ***** ** ********* ** ******** ********* ** appropriate
  • ***** **** ******** *** *********** **** **** *** **** **** for ** ***** ** **** ** ***** *********** **** *** be ******** *** ************ *** ***** ** ********* ** ******** personnel ** ***********, *** ******/********** ***** *********** ** **********
  • ****** ****** ********* ** ********* ****** *****
  • ****** ****** ******** **** ***** ****/******** ***** ** **********

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

  • ********* ***** *******
  • ********** ****** ** ****** ***** ** **** (********* **** * limit ** *-* ***** *** **** **** *** ******)
  • ********* ****** ******* *******
  • ******* ******** ******** ** *** ******** ********* ** **** ** software ********

Standard **********

***** ************ ******** ** **** ** *** ******** *** ** altered, *** *** ********* ***** ** ******* *** ********** **** extreme *****, ****** ******* ** *********, ** ********* ***** * customer ***** ******* ** **** ********* ** *** *********.

  • ***** *** ****** ******, *****, ******, ***********
  • ********-******* ** ********* ********* ** *** *** **********
  • ******* *** ***** ******* ******
  • ********* ******* ** **** ** *** - ********, ******, ******, fires, ***.
  • ********* ******* ** *******, *****
  • ********* ******* ** **********, ****** ** *********** ****
  • *** ********* *** *********** ** **** ********* ** *********
  • ********* ***** **** * (********* *-* *****) ** ** ****** supported ** ************

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

******* ******* ** **** ** *** ********* ****** ** ************ listed ** ***** ****** *********. ** **** *****, *** **** large *******, ** *** *** ** ********* ** ******** **** a ******** **** *** ** *** ******* **** ***** (*******, workstation) *** ******/****** ** ******* *** ***** ******** *******.

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

******* ********** ***** ******* **/* ********, ********* ********. ** *** do *** ********* **** ** **-**** *********** *** ***** ** will ****** ** ********* ** *** ********* ** ** ****** service ***** *** ******** *******.

** ******* ******** **** ** *-* ***** ** ******, **** a ********** *** ** **-**** **** ****** *-* ***** ***** initial *************** *** ***************, *** * ***** ********** **** ** 24-48 *****. ********** ********** ***** **** ***** ******* *** ********** to ******** ***** *** ****** *********.

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

** ***** ** ****** ******* ******* *** ** **** *********** quickly **** * ****** ***** *********** ****** **** ***** *******, servers/NVRs *** ****** ******* ********* ** ***** *** *********.

*** ***** ********* * ********* *** ** ***** *** ******** spares ** ** **** ** *** ********* ******** ** ****** faster/easier ****** ** **-**** ***********. ** **** ** **** *** equipment ****** ** *** ******** **** ****** ** **** ** a ****** **** ** ******* *** ******* ********** ** ******** of *** **********.

*********** *** ********* **** ******* ********** **** ******* **** ************* on * ******* ****** ** *************, ** **** ****** ********* can ** **** ** ***** ******.

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

******** ***** *** ** ******* ** * ******** *** ********* that **** ****** ******* **********. ******** *** ****** ********* *** also ** ********** **** ** ****** ******* *********, *** **** typically ******* **** ******** ** ************* ***** ** *** *********, and ***** ** **** ********* ***** **** *** ******** ** up *** *******.

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

********* * ********** ** ***** ****** ***** ** **** ** the ****** ***** ** * *********** *********. *-**% ** ****** for * ***** ********* **** ******* **** ** ****** ********** maintenance *** ****-********-*** ******. ***** ** **** ** **% ** system ***** *** **** *** ********** **** ***** ******** ******** to *** ******.

***** *** ********* * **** *******, ****** ****** ***** ** 3-5 ***** ****** ** *******, *********** **** * ***** ********, to ****** * ****-**** ********* ** *****.

***** ********* ****** ** ********, *** ***** ** *** ********. Adjustments ****** **** *********** ***** ******** *******. **** ****** *** ********* **** ** ***** *** materials **** ****.

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

*** ****** ************ *********** ****** ******* * **** *********** ** get ********** ** ***** ** **** ********. **** ****** ** opportunity ** ****** *** ******* ** ***** ********** **** **** occurred ** *** **** **** *** ******* ****** ************ ** upgrades ** **********.

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

**** *** ******* * ****** ******* *********** *** ** * ******** *** ******** **** *** ******* agreements. *** *** **** ** **** *** *** **** *** your *******.

**** ********** ********* **** **** * ****** ***/** ********** ** your ****** **** *********** ***** ********** ************ ****** ******* ********* and **********. ** **********, ******** ******* *** ************ ***** *** vary ** ***** ** *******.

Comments (7)

“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?

in my willage, total means total.

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

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.

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.

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.

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).

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

Mobile Surveillance Trailers Guide on Jan 17, 2019
Putting cameras in a place for temporary surveillance where power and communications are not readily available can be complicated and expensive....
Testing Bandwidth Vs. Low Light on Jan 16, 2019
Nighttime bandwidth spikes are a major concern in video surveillance. Many calculate bandwidth as a single 24/7 number, but bit rates vary...
Access Control Records Maintenance Guide on Jan 16, 2019
Weeding out old entries, turning off unused credentials, and updating who carries which credentials is as important as to maintaining security as...
Access Control Cabling Tutorial on Jan 15, 2019
Access Control is only as reliable as its cables. While this aspect lacks the sexiness of other components, it remains a vital part of every...
Avigilon Favorability Results 2019 on Jan 15, 2019
Since IPVM's 2017 Avigilon favorability results, the company was acquired by Motorola and has shifted from being an aggressive startup to a more...
Pelco Favorability Results 2019 on Jan 11, 2019
Pelco had a significant favorability problem amongst integrators in our previous study (see 2016 Pelco results). Now, in the first edition of our...
Winter 2019 IP Networking Course on Jan 10, 2019
Today is the last day to register for the Winter 2019 IP Networking course. This is the only networking course designed specifically for video...
NTP / Network Time Guide For Video Surveillance on Jan 10, 2019
Inaccurate time can lead to missing or inadmissible video, yet this topic is often overlooked, with cameras and servers left defaulted,...
Wavelynx Access Control Manufacturer Profile on Jan 10, 2019
Denver-based WaveLynx is not well known as an access reader manufacturer, but OEMs for big industry brands including Amag, Isonas (Allegion),...
UK: Private Video Surveillance Complaints Down Since GDPR on Jan 09, 2019
The arrival of the GDPR on May 25, 2018, brought fears the law would spark a massive increase in privacy complaints about security camera use....

Most Recent Industry Reports

Mobile Surveillance Trailers Guide on Jan 17, 2019
Putting cameras in a place for temporary surveillance where power and communications are not readily available can be complicated and expensive....
Exacq Favorability Results 2019 on Jan 17, 2019
Exacq favorability amongst integrators has declined sharply, in new IPVM statistics, compared to 2017 IPVM statistics for Exacq. Now, over 5 since...
Testing Bandwidth Vs. Low Light on Jan 16, 2019
Nighttime bandwidth spikes are a major concern in video surveillance. Many calculate bandwidth as a single 24/7 number, but bit rates vary...
Access Control Records Maintenance Guide on Jan 16, 2019
Weeding out old entries, turning off unused credentials, and updating who carries which credentials is as important as to maintaining security as...
UK Fines Security Firms For Illegal Direct Marketing on Jan 16, 2019
Two UK security firms have paid over $200,000 in fines for illegally making hundreds of thousands of calls to people registered on a government...
Access Control Cabling Tutorial on Jan 15, 2019
Access Control is only as reliable as its cables. While this aspect lacks the sexiness of other components, it remains a vital part of every...
Avigilon Favorability Results 2019 on Jan 15, 2019
Since IPVM's 2017 Avigilon favorability results, the company was acquired by Motorola and has shifted from being an aggressive startup to a more...
Gorilla Technology AI Provider, Raises $15 Million, Profiled on Jan 15, 2019
Gorilla Technology is a Taiwanese video analytics manufacturer that recently announced a $15 million investment from SBI Group, saying this...
2019 IP Networking Book Released on Jan 14, 2019
The new IP Networking Book 2019 is a 285 page in-depth guide that teaches you how IT and telecom technologies impact modern security...
Arecont Costar Layoffs on Jan 14, 2019
Arecont Vision, a Costar Company, has laid off more than 10% of their workforce in a move the company described to IPVM as a result of "important...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact