Service Agreement - want to draw up a service contract for plumbing work for our office premises

Dear All,

We want to draw up a service contract for plumbing work on our office premises. Please send us a formal copy of the agreement.

Thanks,
Alok Singh

Details are mentioned below:

Scope of work:
Subject to the terms and conditions of this Maintenance Contract (AMC), the Service Provider shall provide the following services:
- Repair plumbing work in first-floor toilets.
- Repair plumbing work in ground-floor toilets.
- Repair plumbing work in scrap-side toilets.
- Repair plumbing work in security gate toilet.
- Leakage repair in plumbing line, inside and outside plant premises.
- Other related leakage repair/cocs/taps replacement.

Terms & Conditions (Instructions to the Contractor):

A lump-sum rate of Rs. 18,000/- (Eighteen Thousand rupees only) per month shall be paid for the AMC/maintenance of plumbing line and other related works by cheque in the name of "VINAY T." The AMC work includes the following:
- Regular visits by the contractor to the company within every six days, totaling five visits in a month.
- The contractor "VINAY T" shall ensure the deputation of the required number of experienced labor with tools, etc., for rectification of all complaints pertaining to plumbing repair work.
- The contractor shall ensure the repairing and rectifying of all internal and external plumbing repairs when defects are observed and/or complaints are given/registered on the phone or in person.
- Any item, fixture, or fitting that needs to be replaced shall be arranged by the company.
- Payment for additional plumbing job work and replacement/repair works not included in the contract shall be paid on a case-by-case basis.
- The contractor shall not take away all replaced and damaged plumbing repair materials without informing HRD.
- The contractor will maintain proper records indicating reasons for not attending any particular complaint within the time schedule.

This contractual engagement initially for a period of one year from 07-May-2024, does not, in any manner, vest any right in the contractor and/or his workers to seek absorption in the regular employment of the company. The period of the contract may be extended based on the quality of service. However, both parties can terminate this agreement by giving one month's notice to each other at any time.
The contractor must submit the AMC Bill on a monthly basis to the HR department of EIL on or before the 3rd of every month for the payment of the previous month.

Dear Alok Singh,

Instead of making a formal agreement, you can issue the Purchase Order (PO) to hire the services of the plumbing contractor. You can attach the terms and conditions to the PO. You may incorporate the following additional points:

a) In the Scope of Work (SOW), you have listed the points where the plumbing services will be executed. However, in the first four points, you have mentioned the toilets but not the urinals, wash basins, etc.

b) The fifth point is "Leakage repair in plumbing line, inside & outside plant premises." Why will the plumbing contractor do the repairs outside the plant premises? Is it not the job of the local municipal corporation?

c) For every visit, the plumber is expected to note the details of the work done. What about the format of the service log to record the details? Will it be recorded on a register or a loose sheet? Who will sign from the company for the work done? Will there be records for the plumbing items issued by the company?

d) Precautions to be observed for repairs of the ladies' washroom are not mentioned.

e) Responsibility for the repairs arising out of poor workmanship is not mentioned.

f) The overhead tanks supply the water to the washrooms. What about the repair work of the overhead tanks? What if the water pipes start leaking at the rooftop?

g) You are going to pay ₹18,000 per month. But what about the payment terms? Should the contractors raise the invoice as per the standard copy approved by the company? Who will the plumbing contractor hand over the invoice to?

h) Please include the points about safety precautions and safety training for the plumbers.

i) What about the accidents arising during the work? Who will be responsible for settling the claims? If the company will not settle the claims because of the accidents, then include an indemnity clause also.

j) What is the duration of the agreement? For how long will the amount of ₹18,000 per month remain valid? Will there be a percentage increase every year?

Thanks,

Dinesh Divekar