Property Maintenance and Service Contractor Agreement

What a good one includes

• A highly detailed, unambiguous scope of work that outlines the exact tasks, materials, and quality standards expected of the contractor.
• Clear payment terms detailing the payment schedule, milestone triggers, accepted payment methods, and consequences for late or incomplete work.
• Verification and requirements for the contractor’s active professional licenses, worker's compensation, and general liability insurance coverage.
• A clear declaration of independent contractor status to prevent any legal misclassification and clarify that the contractor is responsible for their own taxes and benefits.
• A termination clause that outlines how either party can end the agreement early, including notice periods and remedies for breach of contract.
• An indemnification clause that shifts liability to the contractor for any property damage, bodily injury, or legal claims resulting from their work.

Common mistakes to avoid

• Relying on vague, verbal handshakes or brief text messages instead of putting a formal, written agreement in place before work begins.
• Failing to verify that the contractor possesses active, valid liability insurance and worker's compensation policies before they step onto the property.
• Omitting a specific timeline or deadline for completion, which can cause routine maintenance projects to drag on indefinitely.
• Neglecting to define who owns or provides the necessary equipment, materials, and permits required to legally complete the job.

Frequently asked questions