Maintenance and repair contracts

Maintenance Contracts are for those who do routine maintenance work. For example, every Monday morning ABC Landscaping mows lawns, weeds flower beds and trims the edges for a company or individual. The amount of work to be performed is agreed upon in advance as is the price.

Examples of work that Maintenance Contracts may include:

• HVAC seasonal maintenance
• Pool cleaning
• Snow removal
• Landscaping
• Routine IT tasks
• Window cleaning
• Office or business cleaning
• Grounds maintenance

While these contracts are for regularly scheduled work, it does have provisions for how to handle one-time work such as replacing bad equipment or extra work that may only occur every few years or so.

If you want to get out of a contract, you'll first need to review your original contract. Your contract will usually explain how a contract can be terminated. You may be able to cancel without penalty during a grace period or with adequate notice. Some contracts may quit if you discontinue payment; however, you must carefully review your contract before you stop paying since you may incur late fees and/or have to pay in one lump sum the remainder of your contract.

How to get out of a contract:

• Review the quit terms in your contract. Apply those if necessary in writing.
• Ask. If you cannot fulfill your part of the contract, the other party may let you out (like if you can no longer pay).
• Pay them a portion of the remainder of the contract. If you cannot pay for the remainder of the contract, they may be willing to take partial payment (cheaper than going to court).
• Work with a mediator. A mediator can help the contract dispute be resolved out of court. This step may be required as part of your contract.
• If you are the one providing the service, offer to find them a replacement service to fulfill your duties.
• If you are being sued for breaching a contract, you may want to hire a lawyer to help you navigate your next steps.

Yes, repair contracts will often include an option to apply a Mechanic's Lien. "In-possession" Mechanic's Liens are common. For example, if you drop off a ring to be repaired by a jeweler, but you don't pay or pick up the ring within a certain amount of time (they have possession of the ring). In this case, your jeweler will most likely sell your ring to recoup their costs. This option is written into the original sales contract. Most of us are aware of this type of lien and can and should write it into our repair contracts.

"Non-possession" Mechanic's Liens are a bit different. If you perform repairs on a customer's property but do not have possession of the property, you can apply a 'non-possession" type lien. In this case, you most often have to file with the local courts to enforce a Mechanic's Lien against the property. If the client doesn't pay, you may be allowed to reclaim the improved property. For example, if you put in new kitchen cabinets and are not paid, you may be able to take the new cabinets out of the kitchen to help recoup your costs.