How does a maintenance contract work?

Maintenance is crucial for maintaining every type of facility. However, many businesses don't have the in-house resources they can dedicate to maintenance tasks, in which case outsourcing maintenance can help keep the property in consistently great shape. In the process of outsourcing, a maintenance contract is required.

To give you a better understanding of what to expect from a maintenance contract when outsourcing these services, the following is a breakdown of:

  • What these contracts are
  • The benefits of outsourcing
  • What factors into a contract

What is a maintenance contract?

A maintenance contract is a type of legal agreement that a business and a maintenance contractor make regarding outsourced maintenance services. This contract will detail the specifics of the services, including all terms and conditions pertaining to a variety of maintenance services, from routine maintenance to major repairs.

Why should your business outsource maintenance tasks?

Businesses may outsource maintenance for a number of reasons. For instance, the work may be too extensive for in-house teams to handle. The business may also lack staff with adequate knowledge and resources to perform certain maintenance tasks. In other cases, maintenance may not be frequent enough to warrant the hiring and onboarding of a full-time maintenance worker. Depending on the circumstances, maintenance contracts may also be more affordable than other solutions.

Generally, there are plenty of reasons why business owners may wish to outsource maintenance via a contract.

The lengths of maintenance contracts

The length of a maintenance contract will vary depending on the company and services required. With First Response, ongoing maintenance contracts typically last for ten years.

Although some businesses may only require maintenance for once-off projects, others may benefit from a long-term contract. Some of the specific benefits of a long-term contract include:

  • Increased cost-effectiveness — One of the main benefits of a long-term contract is the ability to save as much as tens of thousands of dollars. Organisations can often eliminate the need for major and emergency repairs through regular routine maintenance.
  • Easier financial planning — Another advantage of a maintenance contract is the chance to plan ahead financially, seeing as preventative maintenance helps reduce costs in the long term.
  • Reliable emergency support — When required, maintenance contractors can provide emergency services that address issues as needed. This can prevent those problems from worsening.
  • Reduced risk — Long-term maintenance contracts also help reduce the legal and financial risks of maintenance services. Professionals offer consistently high-quality work that helps maintain your property for many years.

Maintenance contract pricing

Multiple factors will influence the pricing of a maintenance contract, including:

  • The frequency of maintenance required
  • The number of assets
  • The variety of services required
  • The length of the contract

A good maintenance contractor will accurately estimate the total cost of a contract to ensure clients know exactly what they'll pay for all services provided.

What's included in a maintenance contract?

Several details factor into maintenance contracts, including:

  1. Name and contact — Contracts will include details such as the business’s name, signatory details, addresses, and service locations.
  2. Scope and schedules of work — The overall scope of the project will help determine which equipment will be required, the operating conditions, and other information that helps gauge the client's needs.
  3. Timeline with key milestones — The contract will detail the amount of time maintenance services will take. It will also include the critical milestones that the contractor must reach throughout this timeline.
  4. Pricing — Contracts need to detail the price of the services provided.
  5. Expectations from the client — Contractors will be unable to complete maintenance services without the client’s cooperation. This is why the contract should detail what the contractor needs from the client.
  6. Specifications — Technical details and other information regarding the facility and equipment serviced will be defined in the contract.
  7. Terms and conditions — All terms of payment and other terms and conditions will apply.
  8. Force majeure — This is a requirement in all contracts. It frees both parties of their obligations under special circumstances.

Get the services you require with a maintenance contract

Maintenance contracts offer numerous advantages for businesses that need them. If you're considering starting a long-term maintenance contract and you’re looking for a reliable maintenance service provider, we're here to serve as your trusted maintenance partners.

Related Posts

6 November 2024

Mistakes and bad workmanship can be a drain on any maintenance program. Just when you...

29 June 2024

Demystifying Property Maintenance Contracts: A Comprehensive Guide

In the realm of...