Read every contract as if the relationship has already gone wrong. Clear terms protect both sides. This is general information, so have a lawyer review large contracts.
The Checklist
- Legal names of both parties
- Each building and system covered
- Task list and frequency
- What is excluded
- Response times by priority, including nights and weekends
- Remedies for missed response times
- Hourly and after-hours rates
- Markup on parts and subcontractors
- Approval limit for extra work
- Reports and record ownership
- Insurance and license requirements
- Contract length and auto-renewal date
- Cancellation notice and fees
- Warranty on labor and parts
Red Flags
- Long auto-renewal with a short cancellation window
- "Reasonable" response time with no number
- Broad exclusions that remove most of the value
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