©2013 Institute of Real Estate Management. This document was prepared for your use by the IREM® Knowledge Center. Links to resources were active at the time of publication.

Top10Must‐HaveContractProvisionsSo, 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.PropertyDescription The legal address/location and legal property description of where the work or service will be performed.

4.DescriptionofWork 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.WaiverofLiens The waiver of liens and the provisions required for this process.

9.MiscellaneousProvisions 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.SignaturesandDate Signatures and date of signing by each of the respective contracting parties.