A maintenance contract is a tool that sets out the obligations of a service provider to a customer. This is defined over a period of time. Maintenance contracts are in use across a diverse range of industries from cleaning to I.T.
The ultimate goal of a maintenance contract is to ensure your business continues to run. This is so it can continue to generate income if there is a problem with machinery; it could hit your bottom line.
In this article, you’ll read about the importance of well-drafted maintenance contracts. Get the details right before you sign a contract, and you’ll see how this contractual tool is a business saver.
Managing Financial Risk
Unforeseen equipment failure can be a significant financial risk. That risk increases as your equipment ages. Industries that rely on expensive capital are particularly vulnerable. Maintenance contracts are a practical way of mitigating that risk. They do this by helping to ensure equipment lives out its planned life expectancy.
Cut Downtime
Commercial maintenance contracts should include details about servicing schedules. The impact on production and service delivery should be outlined. Maintenance providers should work with the contracting business to cut downtime. That means keeping productivity at its peak and continuing to generate income.
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Happy Regulators
Most industries are subject to government standards, regulations, and compliance expectations. Maintenance contracts are a way of ensuring that those requirements are met.
This leads to less stress for the operational management team. Once they sign off the contract, it’s down to the provider to deliver.
Deliver Quality Assurance
Quality assurance is an important mechanism in the production or service delivery cycle. Even though there are many different types of maintenance contracts, the principles of quality assurance are often similar across many industries. One of those principles is about controlling variation and have checks in the system that ensure a minimum standard is met.
Maintenance contracts that are well written can incorporate some of those quality control mechanisms to ensure service delivery standards are maintained.
Long Term Rewards
Well drafted maintenance contracts can be designed to build in rewards for delivery, including incentives for maintaining a high standard of service over time.
If the contract is well written, then as time passes, both parties should feel they are getting a progressively better deal. Using software like https://auditmate.com/ provides the tools needed to develop contracts.
Maintenance Contracts That Deliver
In this article, you’ve read about the importance of well-drafted maintenance contracts. Having a maintenance provider, no matter what industry you’re in, is a smart move. Smarter still is having the right kind of contract designed to meet your needs.
As you read through this article again, take a moment to reflect on your current provision and the annual maintenance contract that sits behind that. If it needs work, then don’t hesitate to start a dialogue. You can read other thought-provoking articles on our site that offer advice for work and home.
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