SERVICE AGREEMENT TERMS & CONDITIONS
1. The Agreement or quoted price is conditioned upon the system(s) covered being in a maintainable condition. If an inspection indicates repairs are required, a firm-price quotation or time and material estimate will be submitted for the Customer’s approval. Should the Customer not authorize the repairs, CTI FIELD SERVICES, INC. (CTI) may either remove the unacceptable system(s), component(s), or part(s) from its scope of responsibility and adjust the annual agreement price accordingly or cancel this Agreement.
2. Excluded from this agreement, unless otherwise stated herein, are repairs or replacement of items not normally mechanically maintainable, such as but not limited to: electronic/solid-state controllers/microprocessors, loss of refrigerant due to piping/coil leaks mechanical connections excluded, ductwork, boiler shell and tubes, cabinets, boiler refractory material, heat exchangers, electric heat elements, main power service, electrical disconnects, and electrical wiring, piping, tube bundles, valve bodies, coils, structural supports, storage vessels/tanks, casings, fixtures, grillage and tower fill, pump seals, shaft seals, and check valves.
3. This Agreement does not include responsibility for the design of the system, obsolescence, safety testing, water/air balancing, duct cleaning, painting, removal and reinstallation of valve bodies and dampers, repair or replacement necessitated by freezing weather, storms, hurricanes, electrical power failure, low voltage, burned-out main or branch fuses, low water pressure, water treatment provided by others, water condition, vandalism, unavailability of refrigerants, misuse or abuse of the system(s), negligence of others (including Customer), failure of Customer to properly operate the system(s), requirements of governmental, regulatory or insurance agencies, or other causes beyond the control of CTI.
4. Customer shall permit CTI free and timely access to areas and equipment and allow CTI to start and stop the equipment as necessary to perform required services. All planned work under this Agreement will be performed during CTI normal working hours. CTI will not be required to move, replace, or alter any part of buildings or structures in the performance of this Agreement. Customer will make adequate trash disposal provisions for used filters, miscellaneous maintenance materials, and small parts.
5. All quoted pricing is based on straight-time (ST or REG) rates between the hours of 8:00 AM and 4:00 PM, Monday through Friday. These hours may be adjusted temporarily or otherwise by CTI. The following shall apply in all cases: ST or REG rates apply for all work Monday - Friday, 0-8 hours; Overtime (OT) rates apply for all work Monday - Friday 8+ hours and all-day Saturday; Double-Time (DT) rates apply for all work on Sundays and Holidays. In all cases, sales tax is not included in any quoted hourly rates and must be added at time of invoice unless you are exempt from sales tax and can provide the appropriate tax-exempt verification.
6. Unless otherwise specified in an agreement, If CTI is called for after-hours service and a technician is dispatched, a minimum of four (4) hours of appropriate service rate shall apply. Billing shall also apply while in transit to and on the way out from the job site.
7. Customer shall permit only CTI personnel or agents to perform the work included in the scope of this Agreement; should anyone else perform such work, CTI may, at its option, cancel this Agreement, eliminate the involved item of equipment from inclusion in this Agreement, or charge Customer for the related service work.
8. CTI expressly disclaims any and all responsibility and liability for the indoor air quality of the Customer’s facility.
9. Customer shall make available to CTI personnel all pertinent Material Safety Data Sheets (MSDS) pursuant to OSHA’s Hazard Communication Regulations. Customer is responsible for containing and clearly marking any known hazardous materials on site.
10. CTI’s obligation under this proposal and any subsequent contract does not include the identification, abatement or removal of any asbestos products, disposal of oil removed from equipment, or other hazardous substances. In the event such products or substances are encountered, CTI’s sole obligation will be to notify the Customer of the existence of such products and materials. CTI shall have the right thereafter to suspend its work until such products or materials and the resultant hazards are removed. The time for completion of the work shall be extended to the extent caused by the suspension and the contract price equitably adjusted.
11. The Agreement price is subject to adjustment annually on each commencement anniversary to reflect increases in labor, material, and other costs, unless otherwise stated (e.g. price protection provided by a multi-year initial term). Periodic adjustments may be made to quoted pricing to account for unexpected, mandated, or volatile market pricing of costs contributing to our quoted prices and labor rates.
12. Amount on this agreement is based on payment by cash, check, or electronic payment. A convenience fee of 4% will be added to the total if paid with a credit card.
13. Customer agrees to promptly pay invoices within thirty (30) days of issue. Should a payment become sixty days or more delinquent, CTI may stop all work under this Agreement without notice and/or cancel this Agreement, and the entire Agreement amount shall become due and payable immediately upon demand. Customer agrees to pay interest on any sums outstanding and past due (i.e. over thirty days) at a rate of 1.5% per month.
14. Services provided under this Agreement involving extra work (materials, labor, subcontractors, rentals) will become an extra charge (fixed-price amount to be negotiated or on a time and material basis at CTI’s preferred Customer rates then in effect) over the sum stated in this Agreement. If a trouble call is made at Customer’s request and inspection indicates a condition that is not covered by this agreement, CTI will charge Customer at the rate then in effect for such services.
15. In the event CTI must commence legal action in order to recover any amount payable under this Agreement, Customer shall pay CTI all court costs and attorney’s fees incurred by CTI. Any legal action relating to this Agreement, or the breach thereof, shall be commenced within one year from the date of work.
16. CTI shall not be liable for any delay, cost, loss, damage, or detention caused by the unavailability of machinery, equipment, or materials, delay of carriers, strikes, including those by CTI employees, lockouts, civil or military authority, priority regulations, insurrection or riot, action of the elements, forces of nature, or by any cause beyond its control.
17. In case of any failure to perform its obligations under a Full-Service Agreement, CTI’s liability is limited to repair or replacement at its option, and such repair or replacement shall be Customer’s sole remedy. This warranty is conditioned upon proper operation and maintenance by Customer and shall not apply if the failure is caused or contributed to by accident, alteration, abuse or misuse, and shall not extend beyond the term of this Agreement.
18. Under no circumstances, whether arising in contract, tort (including negligence), equity or otherwise, will CTI be responsible for loss of use, loss of profit, increased operating or maintenance expenses, claims of Customer’s landlords, tenants, or clients, or any special, indirect, or consequential damages.
19. To the fullest extent permitted by law, Customer shall indemnify and hold harmless CTI, its agent, and employees from and against all claims, damages, losses and expenses, including and not limited to attorneys’ fees, arising out of or resulting from the performance of work hereunder, provided that such claim, damage, loss, or expense is caused in whole or in part by an active or passive act or omission of Customer, anyone directly or indirectly employed by Customer, or anyone for whose acts Customer may be liable, regardless of whether it is caused in part by the negligence of CTI.
20. The amount of any sales, use, occupancy, excise, or other federal, state, county, or local tax which Seller hereafter shall be obligated legally to pay, either on its own behalf of the Customer or otherwise, with respect to the services or materials covered by this proposal, shall be added to such prices and paid by the Customer.