An agreement outlining the duties, timelines, and frequency of the maintenance services your service provider offers is known as a maintenance contract. Although it’s difficult to pinpoint an exact figure, some believe that just 10% of organisations handle all of their basic asset and equipment maintenance in-house. These maintenance contracts and service agreements are crucial for planning and scheduling maintenance because the remaining 90% rely on third parties for at least a portion of or all of their work.
However, before you can negotiate the ideal maintenance strategy for your facility, you must be aware of the potential advantages of outsourcing maintenance, the various forms of maintenance contracts, and the clauses you’ll probably want to include.
What is a maintenance contract?
A maintenance contract is a written agreement that specifies the work that will be done, when it will be done, how quickly, and to what standards. It is made between your company and a maintenance service provider.
Any maintenance or repair work, whether regular upkeep or more specialised maintenance and repairs, must be specified in the agreement for all parties. It should cover everything, such as the scope of the service provider’s obligations, service completion times, and compensation in the event that the service provider harms your property or equipment.
Before agreeing to engage with a service provider, you should thoroughly discuss the terms of the maintenance contract. The agreement should be as specific as possible now to make future disputes easier to resolve. And be sure to invest in quality legal counsel when you feel the need.
How do you know you need a maintenance contract?
You have four fundamental alternatives for maintaining your buildings and equipment. One option is:
• Internal maintenance crews
• OEM technicians, or original equipment manufacturers
Providers providing third-party maintenance services or any combination of the aforementioned three possibilities
Organisations frequently require at least some outside assistance due to workload or the expense of engaging specialists full-time for duties that should only ever be occasional or uncommon.
For instance, in many places, only licenced professionals can evaluate and test your fire suppression equipment. You will almost certainly require someone with extensive specialised expertise to work on lifts and escalators. It doesn’t make financial sense to have these technicians on the team all the time, though, as you should only operate on the sprinklers and lifts a few times a year.
Therefore, you require maintenance contracts if you have work that you either cannot complete yourself due to a lack of resources or because it is a specialised job that your team cannot complete safely or legally.
What are the benefits of maintenance contracts?
Even if you do, you can have specialised assets or equipment that no one on the team is formally trained to inspect, test, maintain, or repair. Not everyone has a sizable, fully staffed internal maintenance department. The simple answer is to delegate a portion of your maintenance duties to qualified professionals.
By going with an outside supplier, you may employ professionals who are familiar with your assets and machinery and who can offer a level of service that you simply cannot match, allowing you to concentrate your time and resources on what you do best.
The legal liability of your company can also be decreased with the aid of maintenance agreements. A service provider must be protected by insurance in the event of an accident. You should talk about liability, obligations, and coverage restrictions when discussing the specifics of your service agreement.
The cost of your inventory can be decreased by giving a contractor control of your maintenance. They can maintain your equipment in the finest possible condition because they have the tools and extra parts needed, freeing up your limited cash for other uses. So, for instance, the group that examines your sprinklers is the one who makes the necessary investment in specialised hardware and software. Since it is essentially all they do, it makes sense to them. Spending money on tools you only use occasionally is a bad investment for you and your maintenance crew.
What are the different types of maintenance contracts?
The two primary types are annual maintenance contracts (AMC) and comprehensive maintenance contracts (CMC). Both pay the service fees for continuous upkeep and unexpected repairs. The degree of service each offers is the primary distinction between the two.
