Reviewing maintenance contracts in your apartment building

Living in a world of apartments is complex. Commercial Facility Services looks at the importance of reviewing maintenance contracts. 

Inside every building is a story that is told from many different perspectives. Life within apartment living is complex. Join us as we answer all your questions so we can better understand that world a little bit better.  

Importance of due diligence in reviewing maintenance contracts: a building manager’s perspective 

As a building manager, ensuring that every contract signed aligns with the long-term goals of the property and its residents is crucial. Maintenance contracts require careful scrutiny. The process of reviewing these contracts isn’t just a formality – it’s a critical step in safeguarding the building’s operational efficiency and financial health.

Hidden clauses and unexpected commitments

One of the biggest challenges when reviewing maintenance contracts is identifying special clauses that could lock the building into an unfavourable agreement. These clauses are often buried in the fine print and can create significant issues down the road. For instance, in a recent contract with a gym equipment provider, there was a clause stating that by the end of the five-year agreement, the building would not retain any of the leased machinery. Typically, contracts in this domain are structured to allow for the eventual ownership of the equipment. However, in this case, the terms meant that the building would have to start from scratch at the end of the contract, potentially leading to unexpected costs and operational disruptions.

The trap of proprietary software

Another common pitfall is the implementation of proprietary software by maintenance companies. When these companies introduce their own systems, they often do so with an exclusivity clause, making it difficult – and expensive – to switch providers in the future. This can create a scenario where, despite dissatisfaction with the service or pricing, the only viable option is to continue with the current provider due to the lack of compatibility with other systems. Such scenarios underscore the importance of understanding not just the financial implications of a contract, but also the technological dependencies it might create.

The role of due diligence

Due diligence is the key to avoiding these traps. It’s essential to carefully review every aspect of a contract, from the service terms to any special clauses that might be included. Engaging legal counsel or a contract specialist to review these documents can provide an additional layer of protection, ensuring that there are no surprises after the contract is signed.

In the role of a building manager, I’ve learned that overlooking even a minor detail in a contract can lead to a “sticky situation” that could have been easily avoided with thorough due diligence. The responsibility lies in making sure that every agreement is not just beneficial in the short term, but also sustainable and flexible enough to adapt to the building’s future needs.

By being vigilant and proactive during the contract review process, building managers can prevent costly mistakes and ensure that the services provided genuinely meet the building’s needs without unnecessary complications.

Being equipped with all the relevant information from your building manager will ensure a seamless and enjoyable start to your new home.

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