AGREED TERMS: SERVICE CONTRACT
1. Interpretation
The following definitions and rules of interpretation apply in this agreement.
1.1 Definitions:
- Annual Service: the annual service performed by the Supplier under this agreement, in accordance with clause 3.2 and as detailed in Part 1 of Schedule 1.
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- Annual Services Charges: the charges payable in consideration of the provision of the Annual Services, as set out in Part 2 of Schedule 1.
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- Business Day: a day, other than a Saturday, Sunday or public holiday in England, when banks in London are open for business.
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- Business Hours: the period from 8.30 am to 5.30 pm on any Business Day.
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- Charges: The charges to be paid for the Services under clause 7.
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- Commencement Date: the date of this agreement.
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- Confidential Information: any information, which by its nature is confidential, concerning the business, affairs, customers, clients or suppliers of the other party.
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- Contract Year: Any 12-month period starting on the Commencement Date and on each anniversary of the Commencement Date.
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- Equipment: the equipment specified in Part 1 of Schedule 2.
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- Excluded Causes:
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- a) a defect in the manufacturer’s design of the Equipment.
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- b) faulty materials or workmanship in the manufacture of the Equipment;
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- c) the use of the Equipment with equipment or materials not supplied or approved in writing by the Supplier or the manufacturer;
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- d) any maintenance, alteration, modification or adjustment performed by persons other than the Supplier or its employees or agents unless approved in writing by the Supplier;
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- e) the Customer or third party moving the Equipment unless approved in writing by the Supplier;
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- f) the use of the Equipment in breach of any of the provisions of the agreement under which the Equipment was supplied;
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- g) a failure, interruption or surge in the electrical power or its related infrastructure connected to the Equipment.
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- h) a failure or malfunctioning of the air conditioning or other environmental controls required for the normal operation of the Equipment, or an error or omission in the correct use of that air conditioning or other environmental controls by the Customer;
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- i) the Customer’s neglect or misuse of the Equipment; or
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- j) the Supplier reasonably considers that the Equipment is Unsuitable.
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- Excluded Services: any Services required to restore any defect or malfunctioning or failure in the Equipment to Good Working Order where the defect or malfunctioning or failure results from or is caused by any of the Excluded Causes.
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- Extended Term: has the meaning given in clause 2.
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- Good Working Order: operating in accordance with the applicable specification of the manufacturer of the Equipment.
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- Initial Term: has the meaning given in clause 2.
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- Location: the location(s) of the Equipment as specified in Part 2 of Schedule 2, or any other location as may be agreed by the parties in writing from time to time.
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- Repair Services: any repair services performed by the Supplier to restore the Equipment to Good Working Order under this agreement in accordance with clauses 3.3 or 3.4 and as detailed in Part 3 of Schedule 1.
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- Repair Services Charges: the charges payable in consideration of the provision of any Repair Services, to be calculated in accordance with Part 4 of Schedule 1, as varied from time in accordance with clause 7.4.
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- Response Time: the applicable response time set out in Part 3 of Schedule 1.
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- Services: the Annual Service and the Repair Services.
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- Spare Parts: all spare components and subassemblies of the Equipment supplied for installation in the Equipment as part of the provision of the Services.
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- Term: the Initial Term together with all Extended Terms.
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- Unsuitable: has the meaning given in clause 2.2.
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- VAT: value added tax or any equivalent tax chargeable in the UK or elsewhere.
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- 1.2 Clause, Schedule and paragraph headings shall not affect the interpretation of this agreement.
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1.3 A person includes a natural person, corporate or unincorporated body (whether or not having separate legal personality).
1.4 The Schedules form part of this agreement and shall have effect as if set out in full in the body of this agreement. Any reference to this agreement includes the Schedules.
1.5 A reference to a company shall include any company, corporation or other body corporate, wherever and however incorporated or established.
1.6 Unless the context otherwise requires, words in the singular shall include the plural and in the plural shall include the singular.
1.7 Unless the context otherwise requires, a reference to one gender shall include a reference to the other genders.
1.8 A reference to legislation or a legislative provision is a reference to it as amended, extended or re-enacted from time to time.
1.9 A reference to legislation or a legislative provision shall include all subordinate legislation made from time to time under that legislation or legislative provisions.
1.10 A reference to writing or written includes email.
1.11 References to clauses and Schedules are to the clauses and Schedules of this agreement and references to paragraphs are to paragraphs of the relevant Schedule.
1.12 Any words following the terms including, include, in particular, for example or any similar expression shall be construed as illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding those terms.
2. Commencement and duration
- 2.1 This agreement shall commence on the Commencement Date. Unless terminated earlier in accordance with clause 10, this agreement shall continue for one year (Initial Term) and shall automatically extend for one year (Extended Term) at the end of the Initial Term and at the end of each Extended Term. Either party may give written notice to the other party, not later than 90 days before the end of the Initial Term or the relevant Extended Term, to terminate this agreement at the end of the Initial Term or the relevant Extended Term, as the case may be.
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- 2.2 The Customer shall provide the Supplier with full details of the Equipment prior to the commencement of the agreement, to include details of the age, description, and condition of the Equipment. The Supplier reserves the right to carry out a full inspection of the Equipment prior to the commencement of the agreement. Upon such inspection, if the Supplier reasonably considers that the Equipment cannot be maintained in Good Working Order by maintenance and/or the provision of Spare Parts, or the Equipment is damaged beyond economic repair or is hazardous or not suitable for the Services (Unsuitable), the Supplier may (without affecting any other right or remedy available to it):-
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a) notify the Customer of an increase in the Annual Service Charges and/or Repair Services Charges, or an amendment to the Equipment listed in Part 1 of Schedule 2; and/or
- b) where practicable, postpone the commencement of this agreement until such time as the Equipment is remedied by the Customer so that it is no longer Unsuitable and in such circumstances the Supplier shall not be liable to the Customer for any loss, costs or expenses incurred by the Customer, and the Customer shall pay the Supplier’s losses, charges, costs and expenses incurred in connection with its inspection of the Equipment including administration costs.
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- 2.3 During the period of this agreement, if the Supplier reasonably considers that the Equipment is Unsuitable, the Supplier may (without affecting any other right or remedy available to it, including (without limitation) its rights under clause 10.3) remove the Unsuitable Equipment from the scope of the agreement, and the agreement shall continue to apply only in respect of any remaining Equipment at the Supplier’s amended prices for the Annual Service Charges and the Repair Services Charges, as notified to the Customer in writing. Such amended prices shall take immediate effect, whether the Customer confirms its approval, or fails to object to the amended prices within 7 Business Days.
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- 3. Supplier’s obligations
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- 3.1 Supply of Services. During the Term, the Supplier shall supply the Services to the Customer.
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- 3.2 Annual Service. A representative of the Supplier shall attend the Location every Contract Year to provide the Annual Service. The Supplier’s representative shall use all reasonable endeavours to perform the Annual Service during Business Hours at such times as may be agreed in advance between the Customer and the Supplier from time to time, subject to clause 3.7.
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- 3.3 Equipment malfunction – Repair Services arising from Annual Service. If, during the course of the Annual Service, the Supplier’s representative discovers that the Equipment is defective or is malfunctioning or has failed or is not otherwise in Good Working Order, the representative will use all reasonable endeavours to repair it during that visit at the Location and the Customer shall pay the Repair Services Charges relating to such Repair Services. If such repair is not reasonably practicable (or it is not reasonably practicable to do so during Business Hours) the Supplier’s representative shall either arrange for a further visit to the Location within Business Hours to complete the Repair Services, or arrange for the removal of the Equipment (or part of the Equipment, if applicable) for completion off-site.
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- 3.4 Equipment malfunction – Repair Services at other times during the Term. On the Customer informing the Supplier that the Equipment is defective or is malfunctioning or has failed or is not otherwise in Good Working Order at any time during the Term (other than during the course of the Annual Service), the Supplier shall use all reasonable endeavours to ensure that one of its representatives shall attend the Location during Business Hours within the relevant Response Time to perform the Repair Services, subject to clause 3.7.
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- 3.5 Further site visits or repair off-site. Where it is not reasonably practicable for the Supplier’s representative to complete the Repair Services at the Location on their first visit the Supplier’s representative shall arrange for a further visit to the Location within Business Hours to complete the repair.
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- 3.6 Liability for delay if Customer refuses off-site testing or repair. The Supplier shall not be liable for any delay in providing the relevant Services if in the Supplier’s reasonable opinion it needs to remove the Equipment (or part of the Equipment, if applicable) for testing or repair off-site and the Customer unreasonably refuses this request.
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- 3.7 Time for Performance. The Supplier shall not be liable for any losses caused by a delay to the performance of the Services (whether caused by the Customer or the Supplier) and the time for performance of the Services shall not be of the essence of this agreement.
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- 4. Spare parts
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- 4.1 Supply of Spare Parts. The Supplier shall supply and fit at the Customer’s cost such Spare Parts as required to maintain the Equipment in Good Working Order or to restore the Equipment to Good Working Order.
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- 4.2 Quality of Spare Parts and transfer of title in Spare Parts. All Spare Parts shall be either new, or reconditioned or reassembled Spare Parts which are equivalent to new Spare Parts in performance. The Supplier will transfer to the Customer, with full title guarantee and free from all third party rights, all the Spare Parts that it provides to the Customer, and the Spare Parts shall become part of the Equipment upon their installation in the Equipment.
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- 5. Customer’s obligations
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- 5.1 Proper use of Equipment. The Customer shall at all times during the Term:
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- a) use the Equipment only in accordance with the instructions and recommendations of the manufacturer of the Equipment or as may be advised from time to time by the Supplier;
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- b) permit only trained and competent personnel to use the Equipment;
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- c) notify the Supplier promptly if the Equipment is discovered to be defective or malfunctioning or has failed or is otherwise not in Good Working Order;
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- d) keep the Equipment in the environmental conditions recommended by the manufacturer of the Equipment or as may be advised from time to time by the Supplier;
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- e) not allow any other person than the Supplier’s representatives to adjust, maintain, repair, replace or remove the Equipment or any part of it, unless otherwise agreed in writing by the Supplier; and
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- f) not move the Equipment from the Location without the prior written consent of the Supplier (such consent not to be unreasonably withheld or delayed).
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5.2 Access to Location and Equipment. The Customer shall ensure that the Supplier’s representatives have full and free access to the Location and to the Equipment and to any records of its use kept by the Customer, and shall provide them with adequate and safe working space and facilities as are reasonably required to enable the Supplier to perform its obligations under this agreement.
5.3 Provision of information to Supplier. The Customer shall provide the Supplier with such information concerning the Equipment, its application, use, location and environment as the Supplier may reasonably request to enable it to perform its obligations under this agreement.
- 5.4 Safety. The Customer shall take all such steps as may be necessary to ensure the safety of any of the Supplier’s representatives when attending the Location.
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- 5.5 Malfunction reports. The Customer shall report that the Equipment is defective or malfunctioning or has failed or is otherwise not in Good Working Order either in writing or by telephone, or in such manner as the Supplier may reasonably require from time to time.
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- 5.6 Delay due to Customer. If the Supplier’s performance of its obligations under this agreement is prevented or delayed by any act or omission of the Customer, its agents, subcontractors, consultants or employees, then, without prejudice to any other right or remedy it may have, the Supplier shall be allowed an extension of time to perform its obligations equal to the delay caused by the Customer, and the recovery of all losses, charges, costs and expenses (including administration costs) resulting from such delay.
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- 5.7 Cancellation of Services Appointment. Any cancellation of an appointment to supply Services must be made by the Customer in writing not less than 3 clear Business Days between the date of notice and the date of the appointment. If the Customer cancels an appointment in breach of this clause, the Supplier shall be entitled to recover all losses, charges, costs, and expenses incurred in connection with such breach (including administration costs), without prejudice to any other right or remedy it may have.
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- 5.8 Customer Liability. If the Customer:-
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a) fails to provide access to the Location and the Equipment under clause 5.2; or
b) makes an appointment for the supply of Repair Services for an issue which is an Excluded Cause, or where the Equipment is in Good Working Order and no material fault is detected
the Supplier shall be entitled to recover all losses, charges, costs and expenses incurred in connection with such breach or such appointment (including administration costs), without prejudice to any other right or remedy it may have.
6. Excluded Services
- 6.1 No obligation to perform Excluded Services. The Supplier is not obliged to perform any Excluded Services.
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- 6.2 Payment for Excluded Services. Where the Supplier is performing or has performed the Excluded Services in circumstances where it is established that the Equipment was not in Good Working Order due to any of the Excluded Causes, the Supplier may charge, and the Customer shall pay, the Repair Services Charges in respect of that work whether or not it is possible to restore the Equipment to Good Working Order, and the Supplier shall be entitled to recover all losses, charges, costs and expenses incurred in connection with such work (including administration costs), without prejudice to any other right or remedy it may have.
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- 7. Charges and payment