> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fentufsm.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Service Contracts
> Create and manage service agreements with customers
## Overview
Service Contracts are formal agreements between you and your customers that define ongoing service relationships. Contracts specify which assets are covered, what services are included, how often maintenance occurs, and pricing terms. They transform one-time service calls into predictable, recurring revenue.
Service contracts are the foundation of proactive service delivery. They generate scheduled maintenances that automatically create work orders, ensuring consistent service and preventing equipment failures.
## When to Use Service Contracts
Use Service Contracts when you need to:
* Establish recurring service agreements with customers
* Define preventive maintenance schedules for customer equipment
* Create predictable revenue streams
* Differentiate premium service offerings
* Ensure consistent service delivery
* Build long-term customer relationships
* Automate work order creation for regular maintenance
***
## Service Contracts List View
### Key Features
Visual indicators show contract status: Active, Pending, Expired, Suspended. Quickly identify contracts requiring renewal or attention.
Each contract displays the customer name, primary contact, and contact information for quick reference.
See contract name, template used, planning frequency, and key dates at a glance.
Action buttons provide fast access to view details, edit contracts, generate work orders, or renew agreements.
### Contract List Columns
| Column | Description |
| ----------------- | ------------------------------------------------------------------ |
| **Contract Name** | Descriptive name for the service agreement (click to view details) |
| **Contract ID** | Unique identifier assigned by Fentu |
| **Customer** | Which customer this contract is with |
| **Contact** | Primary contact person for this contract |
| **Email** | Contact email for service notifications |
| **Template** | Contract template used (Standard, Premium, Custom, etc.) |
| **Planning** | Maintenance frequency (Monthly, Quarterly, Annual, etc.) |
| **Start Date** | When the contract begins |
| **End Date** | When the contract expires |
| **Status** | Active, Pending, Expired, or Suspended |
| **Actions** | Quick links to view, edit, renew, or generate work orders |
***
## Creating a New Service Contract
Click the "New Service Contract" or "+" button in the top right corner.
Choose which customer this contract is for from the dropdown.
Select a contract template if you've created standard agreements, or start from scratch.
Fill in contract name, start date, end date, pricing, and terms.
Select which customer assets (equipment) are covered by this contract.
Set how often maintenance occurs and what services are included.
Link specialized tools or equipment required for contract work.
Save the contract and the system automatically generates scheduled maintenance records.
***
## Service Contract Detail View
When you click on a contract, the detail view provides comprehensive information and management tools:
### Detail View Sections
Core contract details including:
* Contract name and ID
* Customer and contact information
* Contract template used
* Start and end dates
* Status and renewal information
* Pricing and payment terms
* Service scope and exclusions
List of all assets (equipment) covered by this contract. Each asset shows:
* Asset name and type
* Serial number and location
* Coverage level (full, labor only, parts only, inspection only)
* Link to asset details
**Why this matters:** Technicians know exactly which equipment is covered before arriving on site. Prevents disputes about what's included in the contract.
All scheduled maintenance tasks generated from this contract:
* Maintenance name and frequency
* Next scheduled date
* Assigned technician or team
* Status (Active, Paused, Completed)
* Link to create work order
**Automatic Generation:** When you save a contract with a maintenance schedule, Fentu automatically creates scheduled maintenance records. These generate work orders when due dates approach.
Specialized tools or equipment needed for contract work:
* Tool name and type
* Availability status
* Who it's assigned to
* Calibration or certification status
**Use Case:** If contract work requires specific test equipment, high-voltage tools, or specialized diagnostic gear, link them here. Ensures technicians bring the right equipment and don't waste time with return trips.
Documents generated after service visits:
* Inspection reports
* Maintenance certificates
* Safety compliance documentation
* Customer sign-off forms
Attach templates so they're automatically available when completing work orders for this contract.
All work orders completed under this contract:
* Date and description
* Technician assigned
* Time spent
* Parts used
* Customer feedback
Provides complete service history for contract performance analysis.
Internal notes and special instructions:
* Customer preferences or requirements
* Access restrictions or site-specific procedures
* Billing notes or special terms
* Historical context or modifications
Use this for information that doesn't fit structured fields but is important for service delivery.
***
## Contract Information Fields
### Basic Information
| Field | Description |
| ------------------- | --------------------------------------------------------------------------------------------------- |
| **Contract Name** | Descriptive name: "Acme Corp - Annual Machine Maintenance" not just "Contract 123". Required field. |
| **Contract Number** | Auto-generated unique identifier. Can be customized to match your numbering system. |
| **Customer** | Which customer this contract is with. Required field. |
| **Primary Contact** | Main contact person for this contract. May differ from customer's general contact. |
| **Status** | Active, Pending (awaiting signatures), Expired, Suspended, or Cancelled. |
| **Template** | Which contract template was used (Standard, Premium, Custom, etc.). Helps standardize offerings. |
### Contract Period
| Field | Description |
| ----------------- | ----------------------------------------------------------------------------------------- |
| **Start Date** | When the contract becomes effective. Scheduled maintenances begin on or after this date. |
| **End Date** | When the contract expires. System can send renewal reminders before this date. |
| **Auto-Renew** | Checkbox to automatically renew the contract for another term if customer doesn't cancel. |
| **Renewal Term** | If auto-renewing, how long is the renewal period (1 year, 2 years, etc.). |
| **Notice Period** | How much advance notice customer must give to cancel (typically 30-90 days). |
### Service Scope
| Field | Description |
| --------------------- | ---------------------------------------------------------------------------------------- |
| **Service Type** | Preventive Maintenance, Corrective Maintenance, Inspection Only, Full Service, Custom. |
| **Coverage Level** | Full Coverage (parts + labor), Labor Only, Parts Only, or Inspection Only. |
| **Response Time SLA** | Guaranteed response time for service calls under the contract (4 hours, 24 hours, etc.). |
| **Service Hours** | When service can be performed: Business Hours, After Hours, Weekends, 24/7. |
| **Excluded Services** | What's NOT covered by the contract. Important for preventing disputes. |
### Maintenance Schedule
| Field | Description |
| ----------------------------- | ------------------------------------------------------------------------------------------------- |
| **Planning Frequency** | How often maintenance occurs: Weekly, Bi-Weekly, Monthly, Quarterly, Semi-Annual, Annual, Custom. |
| **Service Window** | Preferred times for service: First week of month, specific days, after business hours, etc. |
| **Tasks Included** | Standard tasks performed during each maintenance visit. Can link to checklists. |
| **Estimated Hours Per Visit** | Expected labor time for each maintenance visit. Used for scheduling and profitability analysis. |
### Pricing
| Field | Description |
| --------------------- | --------------------------------------------------------------------------------- |
| **Contract Value** | Total annual value of the contract. |
| **Billing Frequency** | How often customer is billed: Monthly, Quarterly, Semi-Annual, Annual, Per Visit. |
| **Payment Terms** | Net 30, Net 60, Due on Receipt, etc. |
| **Price Per Visit** | If billing per visit, price for each maintenance call. |
| **Hourly Rate** | Labor rate for work beyond scheduled maintenance (if applicable). |
| **Parts Markup** | Percentage markup on parts if not included in contract. |
### Performance Metrics
| Field | Description |
| ----------------------- | ------------------------------------------------------------------------------- |
| **Target Uptime** | Guaranteed equipment uptime percentage (e.g., 99.5%). |
| **Penalty Terms** | What happens if SLAs are not met (credits, refunds, etc.). |
| **Performance Reviews** | How often contract performance is reviewed with customer (quarterly, annually). |
Structure contracts around asset types rather than generic "facility maintenance." An "Machine Contract" covering all heating and cooling equipment is easier to price and deliver than a catch-all agreement.
Pricing must be maintained and billed in your ERP system. Fentu FSM stores contract pricing for reference, but the source of truth for invoicing is the ERP.
***
## Understanding Contract Components
### How Assets Link to Contracts
When you add assets to a contract, you're defining exactly what equipment is covered. For each asset, specify:
**Coverage Type:**
* **Full Coverage** - All maintenance, repairs, parts, and labor included
* **Labor Only** - Service visits and labor covered, customer pays for parts
* **Parts Only** - Replacement parts covered, customer pays labor
* **Inspection Only** - Regular inspections covered, repairs quoted separately
**Why this matters:** Clear asset coverage prevents billing disputes. Technicians know before arriving whether parts are covered or need customer approval.
### How Scheduled Maintenances Are Generated
When you save a contract with a planning frequency:
1. **System Creates Scheduled Maintenance Records** - One for each maintenance cycle
2. **Maintenance Includes:**
* Linked assets (what to service)
* Service date (based on frequency)
* Tasks to complete (from contract terms)
* Assigned technician or team
* Estimated duration
3. **Work Orders Are Auto-Created** - When the scheduled date approaches, Fentu creates work orders automatically
This automation ensures maintenance never gets forgotten and provides consistent service delivery.
### Tools and Equipment
Link tools to contracts when specialized equipment is required:
**Examples:**
* Refrigerant recovery equipment for Machine contracts
* Multimeters and testers for electrical contracts
* Confined space equipment for tank/vessel contracts
* Specialized diagnostic tools for specific machinery
**Benefits:**
* Technicians know what to bring
* Tool availability is checked before scheduling
* Reduces wasted trips for missing equipment
* Tracks tool usage and maintenance
***
## Contract Actions
### From the List View
Click contract name to see complete details, linked assets, scheduled maintenances, and history.
Modify contract terms, update pricing, add/remove assets, or change schedule.
Manually create a work order for this contract outside the normal schedule.
Temporarily pause maintenance (customer closed for renovation, seasonal closure, etc.).
Process contract renewal with updated terms and pricing.
End contract early (customer cancelled, sold equipment, switched providers).
### From the Detail View
When viewing a contract, you can:
* Add or remove covered assets
* Modify scheduled maintenances
* View work order history and performance metrics
* Generate reports (contract value, service completion rate, profitability)
* Upload signed contract documents
* Add contract notes and special instructions
* Assign tools and equipment
* Link document templates
***
## Contract Templates
### Creating Standard Templates
Build reusable contract templates for common scenarios:
**Example Templates:**
* **Basic Machine Annual** - 2 visits per year, filter changes, visual inspections
* **Premium Machine Quarterly** - 4 visits per year, full system checks, priority service
* **Elevator Monthly** - Monthly inspections per code requirements
* **Generator Quarterly** - Load testing, fluid changes, battery service
**Benefits of Templates:**
* Consistent pricing across customers
* Faster contract creation
* Standardized service delivery
* Easier training for new staff
### Template Components
Each template should define:
* Service frequency and tasks
* Included and excluded services
* Response time SLAs
* Pricing structure
* Required tools and equipment
* Standard document templates
***
## Tips and Best Practices
Explicitly state what's included and what's excluded:
* "Includes all routine maintenance and minor repairs under \$500"
* "Excludes abuse, neglect, or damage from other contractors"
* "Parts over \$1000 require customer approval before ordering"
Clear terms prevent disputes and protect your margins.
Create 3-5 standard templates covering 80% of your business:
* Basic/Standard tier
* Premium/Comprehensive tier
* Equipment-specific agreements
* Inspection-only agreements
Templates ensure consistent pricing and profitability across customers.
Don't just write "all Machine equipment" in the contract description. Link actual asset records so:
* Technicians know exactly what's covered
* You can track per-asset service history
* Contract value matches actual equipment count
* You catch when customers add equipment without contract modification
Match maintenance frequency to equipment needs and industry standards:
* Machine: 2x per year (spring and fall)
* Elevators: Monthly (often required by code)
* Generators: Quarterly with annual load test
* Fire systems: Varies by component and code requirements
Over-servicing wastes time and money. Under-servicing leads to equipment failures.
Include annual price increase terms:
* "Prices increase by 3% annually"
* "Prices adjusted by CPI each year"
* "First year rate locked, subsequent years market rate"
Protects margins as costs rise without renegotiating every contract.
Auto-renewal clauses improve retention but require careful implementation:
* Clearly disclose auto-renewal terms
* Send renewal notices well in advance (60-90 days)
* Make cancellation process reasonable
* Consider regulations in your jurisdiction
High retention rates don't help if customers feel trapped.
Not all contracts are profitable. Track:
* Actual hours vs estimated hours
* Emergency calls vs scheduled maintenance
* Parts costs if covered by contract
* Customer satisfaction and retention
Drop or reprice contracts that consistently lose money.
Use contract notes to document:
* Site access procedures (gate codes, check-in requirements)
* Customer preferences (specific technician, after-hours only)
* Equipment quirks or known issues
* Billing preferences or special terms
Reduces confusion and improves service delivery.
***
## Common Questions
A **Service Contract** is an ongoing agreement defining the relationship, services, and pricing. A **Work Order** is a specific job performed under that contract.
Think of it this way:
* **Contract** = The relationship (like a gym membership)
* **Work Order** = Individual visits (like each gym visit)
One contract generates many work orders over its lifetime.
When you save a contract with a **Planning Frequency** (monthly, quarterly, etc.), Fentu automatically creates **Scheduled Maintenance** records. These define:
* What needs to be done
* How often it happens
* Which assets to service
Scheduled maintenances then auto-generate work orders when their due date approaches. This automation eliminates manual work order creation for recurring maintenance.
Yes! Edit the contract and add additional assets in the "Covered Assets" section. This is common when:
* Customer buys new equipment
* You discover equipment not originally included
* Customer wants to expand coverage
Update the contract price when adding assets to reflect additional service requirements.
When a contract reaches its end date:
* Status changes to "Expired"
* Scheduled maintenances stop generating new work orders
* Existing open work orders can still be completed
* Contract remains in system for historical reference
System can send renewal reminders 30, 60, or 90 days before expiration.
Yes. Change contract status to "Suspended" when:
* Customer location is closed for renovation
* Equipment is offline for extended period
* Seasonal business (shut down winter months)
* Customer requested pause due to budget constraints
Suspended contracts don't generate work orders but preserve all history. Reactivate when ready to resume service.
Edit the existing contract rather than creating a new one. Track significant changes in the contract notes:
* Date of modification
* What changed (added assets, pricing update, frequency change)
* Who approved the change
* New pricing or terms
This maintains continuity of service history while documenting evolution of the agreement.
Auto-renewal can improve retention but requires careful consideration:
**Pros:**
* Higher renewal rates (customers forget to cancel)
* Predictable revenue
* Less administrative work
**Cons:**
* Some customers dislike auto-renewal
* May face regulatory requirements
* Can damage relationships if not clearly disclosed
**Best Practice:** Use auto-renewal but send clear advance notices and make cancellation reasonable.
Common pricing approaches:
**Time & Materials Plus Margin:**
* Estimate annual hours needed
* Add cost of consumable parts
* Apply margin (20-40%)
* Result is annual contract value
**Per Asset Pricing:**
* Set price per asset type (e.g., \$800/year per Machine unit)
* Multiply by number of assets
* Adjust for service frequency
**Competitive Positioning:**
* Research what competitors charge
* Position as value/premium/economy tier
* Differentiate on service level, not just price
Track actual costs vs. contract revenue to ensure profitability.
***
## Related Documentation
View and manage maintenance tasks generated from contracts.
Step-by-step guide to creating service contracts.
Link customer assets to service contracts.
Work orders are generated from contracts and scheduled maintenances.