1235 - Maintenance Service Contracts Policy


University of North Carolina at Chapel Hill Finance Policy 1235 - Maintenance Service Contracts Policy



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

Scope of Applicability

All University Faculty and Staff involved in the requisition of maintenance contracts.


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 (100%) coverage on labor, parts and materials, and provides for emergency repair service.

A full labor service contract covers one-hundred percent (100%) 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 (12) 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.



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 the department is 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: You must submit a change order to Purchasing Services if additional time is required on a service contract. 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 Requirements

External Regulations and Consequences

Contractual Services References

University Policies, Standards, and Procedures

Contact Information

Policy Contact
Subject Contact Telephone Fax E-Mail
Goods and Services Purchasing Services - Goods 919-962-3774 919-962-0636 purchasing_team@unc.edu



  • July 26, 2010
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Article ID: 131430
Thu 4/8/21 9:08 PM
Sun 12/12/21 4:07 PM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Finance and Budget
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Director of Purchasing Services
Next Review
Date on which the next document review is due.
12/09/2021 12:00 AM
Last Review
Date on which the most recent document review was completed.
12/09/2020 3:15 PM
Last Revised
Date on which the most recent changes to this document were approved.
12/09/2020 3:15 PM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
12/09/2020 3:15 PM
Date on which the original version of this document was first made official.
07/23/2003 12:00 AM