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Top 10 Must‐Have Contract Provisions
So, the bidding process is over and it’s time to sign the maintenance agreement with the
selected contractor. Avoid problems by ensuring that the signed agreement offers appropriate
protections for the owner and the owner’s agent. Review the Top 10 Must-Have Contract
Provisions listed in the IREM®
Key Report Managing Your Maintenance Programs here. As
always, be sure to have the owner’s attorney review any contracts and maintenance service
agreements prior to execution.
1. Date
The date of the agreement
2. Parties
The parties to the agreement (the legal name of the contractor and the legal name of the
property or partnership, or the management company as the agent for the property or
partnership).
3. Property Description
The legal address/location and legal property description of where the work or service will be
performed.
4. Description of Work
A description of the work or service. A well-written job specification often becomes part of the
actual contract.
5. Remuneration
The remuneration (or compensation to the contractor) and how it is to be paid—lump sum or
draws (monthly, as an example).
6. Insurance
The required insurance to be provided by the contractor—naming the property, the owner or
partnership, and the management company (the owner’s agent) as additional insured.
7. Indemnification
The contractor’s indemnification of the property owner and property management company as
the owner’s agent.
8. Waiver of Liens
The waiver of liens and the provisions required for this process.
9. Miscellaneous Provisions
Any miscellaneous provisions such as dispute resolution procedures, the projected timeline of
the work, financial penalties for not finishing on time, warranty and call-back provisions and so
forth.
10. Signatures and Date
Signatures and date of signing by each of the respective contracting parties.