Terminations & Roll-overs
Before a new contract starts, you should always consider how it will end. What will happen at the end of the contract? What will happen if the Contractor doesn’t perform to the terms of the contract? Here’s what you need to know.
Most elevator maintenance contracts contain a roll-over clause. That simply means, upon the anniversary date of the contract term, the contract will automatically renew for a duplicate term if the proper notification is not received. If you want to negotiate a new agreement, you should first check the termination language on your existing contract, more specifically you should check when, or if, it renews. Did your contract already renew?
Many contracts require written termination notice three months before the end date. Otherwise, it may automatically renew for another term. Double-check your current contract termination language. Consider signing for just the original term, then make sure the contract is written to reflect a month-to-month term until a new contract is in place.
Non- Performance Clauses.
Make sure there is inclusion for performance clauses / KPI’s (key performance indicator) including the addition of any potential financial penalties for any non-compliance on behalf of the Contractor. Assuming it could happen (and it can), you should consider the addition of clauses that would allow for early termination based on your service provider’s failure to perform.
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BH Elevator Consultants Inc helps the Building Owner or Property Manager get the correct contract with the proper beneficial terms and conditions for their buildings’ elevators. We ensure that the contract contains all of the necessary provisions that will hold the elevator service provider accountable as well as complete transparency on maintenance frequencies, chargeable rates, annual price adjustments, and agreed KPI’s.