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What is the difference between a warranty and a service contract?

Service contracts and warranties both provide some element of repair or maintenance for a specific period of time. The main difference is that warranties are included in the purchase price and service contracts cost extra.

What should be in a maintenance contract?

When writing a contract for an independent maintenance contractor, include the hourly pay rate, methods of payment, and any provisions for additional compensation. With contracts for larger service providers, include all agreed-upon provisions such as compensation, price discounts or early payment, and credit terms.

What is a maintenance contract?

A maintenance contract, defined as the contract between 2 parties which creates the agreement that one party will maintain an asset owned by another party, is common across many industries. Maintenance contracts can exist for equipment, a building, landscape, computers and other information technologies, and more.

What is a disadvantage to having a maintenance contract?

Disadvantages of Contract Maintenance (Potential) Labor cost is not really saved unless the actual number of in-house maintenance staff is reduced. Revision of contract fees in subsequent years often leads to the escalation of total cost if not properly negotiated and controlled.

What is a service maintenance contract?

A service maintenance contract is a legal agreement between a company and a maintenance service provider. It specifies the terms and conditions of the agreement between the two parties.

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