The Ruling on Periodic Maintenance Contracts

The questioner:
There are contracts called maintenance contracts, such as for the maintenance of machines and equipment. The contract includes a condition for monthly or annual maintenance, where the contractor repairs whatever breaks down. Sometimes there is no work for a month or two, and consequently, nothing is repaired during those months. What is the ruling on this money?

The Shaykh:
There is nothing wrong with that. This has existed in this country for a long time. For example, a carpenter would repair farming tools and irrigation systems, and they would give him a certain amount of dates or a certain amount of wheat at the end of the year. Likewise, the blacksmith who repairs the plows throughout the year would be paid a certain amount from the crops. This practice existed, and no scholar objected to it, and the public benefit necessitates this. So, a maintenance contract is permissible, if Allah wills, because it is beneficial for both parties. The money is a benefit for him, and the maintenance of the machines and the shop is a benefit for the other party if something breaks down. The cost of purchases and replacements is on the owner, there is no doubt that it is not on the worker. The purchases and replacements are on the owner; the worker does not provide them. The worker only takes payment for his manual labor, only for his manual labor.

The questioner:
It falls under the category of lease, if Allah wills.

The Shaykh:
It falls under the category of lease, yes.

The questioner:
If a condition is stipulated for this year now.

The Shaykh:
What if the worker...?

The questioner:
He takes more than the agreed amount.

The Shaykh:
No, that is not permissible. This involves excessive uncertainty (gharar). He might buy a machine for many times the value of his labor, yes.