Term Sheet for Operation and Maintenance
Term Sheet for Operation and Maintenance
This Term Sheet outlines the agreement between [Your Company Name] ("Operator") and [Client Company Name] ("Client") concerning the operation and maintenance of [Facility or Equipment Name]. This document serves as a preliminary agreement and does not constitute a binding contract until a full Operation and Maintenance Agreement is executed by both parties. The objectives of this Term Sheet are to define the scope, terms, and responsibilities associated with the maintenance and operation services provided by the Operator.
I. Scope of Services
The Operator shall provide the following services:
Operation Services:
Ensure the functional and efficient operation of [Facility or Equipment Name], including all necessary tasks and activities to maintain optimal performance.
Daily monitoring and adjustment of operational parameters.
Regular reporting to [Client's Department] on operational status.
Maintenance Services:
Routine maintenance: Conduct regular inspections and preventive maintenance as detailed in the Maintenance Schedule attached as Appendix A.
Emergency repairs: Respond to and repair any unexpected breakdowns or malfunctions, aiming for minimal downtime and disruption to Client operations.
II. Terms of Agreement
Effective Date and Duration: This agreement shall commence on [Start Date] and shall continue in effect until [End Date] unless terminated earlier as provided herein.
Renewal Terms: Subject to a mutual agreement, this Term Sheet may be renewed for additional periods of [Renewal Duration].
III. Compensation
Fees:
The Client agrees to compensate the Operator as follows:
Fixed monthly fee: [$Amount]
Variable costs associated with parts or special services not included in the standard monthly fee will be billed as incurred.
Payment Terms:
Invoices will be issued on the 1st of each month and are due within 30 days of the invoice date.
Late payments will incur a charge of [Percentage]% per month on the outstanding balance.
IV. Performance Standards
Service Quality: The Operator commits to maintaining a high standard of service, meeting all specified performance metrics as detailed in Appendix B.
Reporting and Communication: Regular communication will occur through monthly reports and quarterly review meetings with [Your Name], [Your Department].
V. Termination and Dispute Resolution
Termination: Either party may terminate this agreement with [Notice Period] notice for any reason. Immediate termination is applicable under circumstances of breach of contract or failure to meet performance standards after a remedial period of [Remedial Period Duration].
Dispute Resolution: Any disputes arising from this Term Sheet or subsequent Operation and Maintenance Agreement will first be attempted to be resolved through mediation. If unresolved, disputes will be escalated to arbitration in [Location of Arbitration], pursuant to the rules of the [Arbitration Association].
VI. Miscellaneous
Confidentiality: Both parties agree to maintain the confidentiality of the terms of this agreement and any proprietary information exchanged during the term of the agreement.
Governing Law: This Term Sheet and the resulting Operation and Maintenance Agreement will be governed by the laws of [Jurisdiction].
This Term Sheet is intended to provide a framework for the services provided by [Your Company Name] to [Client Company Name]. It outlines key terms and conditions but is not exhaustive. The detailed terms and conditions will be included in the Operation and Maintenance Agreement to be drafted and signed by both parties.
Name: [Your Name]
Date: [Date Signed]
Name: [Client Name]
Date: [Date Signed]
