> For the complete documentation index, see [llms.txt](https://knowledge.out-smart.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://knowledge.out-smart.com/marketplace-packages-and-power-ups/power-ups/contract-management/understand-contract-types.md).

# Understand contract types

Contract type decides how the agreement behaves.

Different types use different scheduling rules.

### Main contract types

#### Preventive

Use this for scheduled recurring maintenance.

This type uses a recurring schedule and days in advance.

#### Corrective

Use this for service agreements with SLA requirements.

This type uses an SLA policy instead of a recurring schedule.

#### Yearly orders

Use this when you need a fixed number of work orders each year.

### Frequently asked questions

<details>

<summary>Can I change the contract type later?</summary>

Yes.

You may need to reconfigure type-specific settings.

</details>

<details>

<summary>Which type fits monthly maintenance?</summary>

Use a preventive contract.

</details>

<details>

<summary>Can one customer have different contract types?</summary>

Yes.

Different agreements can use different types.

</details>

### Related topics

* [**Create a contract**](/marketplace-packages-and-power-ups/power-ups/contract-management/create-a-contract.md)
* [**Configure the recurring schedule**](/marketplace-packages-and-power-ups/power-ups/contract-management/configure-the-recurring-schedule.md)
* [**Use SLA policies with contracts**](/marketplace-packages-and-power-ups/power-ups/contract-management/use-sla-policies-with-contracts.md)


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