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Policies and Procedures

Policy 1235 – Maintenance Service Contracts

July 23, 2003
Last Updated
July 26, 2010
Responsible University Officer
Director of Purchasing Services
Responsible Unit
Purchasing Services

Policy Statement

There is no standard or set of definitions for the various kinds of service contracts in the maintenance service industry. Each maintenance service vendor offers a variety of contracts starting with full coverage, full labor, and preventive maintenance.

A full coverage service contract provides one hundred percent coverage on labor, parts and materials, and provides for emergency repair service.

A full labor service contract covers 100 percent of the labor to repair, replace, and maintain most mechanical equipment.

A preventive maintenance contract is generally purchased for a fixed fee and includes a number of scheduled activities and tasks. Computer software, software licenses, and electronic online data subscriptions may have maintenance service contracts included in the purchase order or written agreement. Maintenance service contracts may be established for a period of twelve months or more and can be renewed at the end of an initial contract period. Once equipment is covered by a maintenance contract, service may be requested by the using department directly from the manufacturer or service industry.

Reason for Policy

This policy is intended to show the variety of maintenance contracts and/or service agreements and the appropriate application of each.



Special Situations



  • 1226.1 - Creating a Purchase Requisition

Additional Information

Frequently Asked Questions

Q: Must maintenance agreements and/or service contracts be approved by the department?
A: Yes. The department must review and agree to the terms of the agreement/contract as they are responsible for adhering to the vendor’s terms.

Q: Are there any required disclosures or information that must be included in the service contract?
A: Yes, the University terms and conditions for goods and services, statement of work or time and materials, and any pertinent information that can affect the outcome of the contract must be included in the service contract.

Q: What is the process for getting a service contract?
A: Contact Purchasing Services to discuss the requirements necessary to fulfill your needs.

Q: My service contract for labor has no more hours available. What happens now?
A: If additional time is required on a service contract, a change order should be submitted to Purchasing Services and you will be notified if there is a discount available for subsequent hours.

Q: What are the benefits of a maintenance service contract?
A: The main benefit is the commitment to having service available in the event equipment malfunctions to ensure the least amount of downtime. Another benefit is reduced cost and minimal paperwork.

Related Data

Contractual Services references:

Powers and duties of Secretary of Administration, N.C. General Statute 143-49(3)
Rules of Secretary of Administration, N.C. General Statute 143-53(4)


Goods and Services Purchasing Services – Goods 919-962-3774 919-962-0636


July 26, 2010