Why set up a maintenance contract and how to manage it?
Like a contract for the provision of services, a maintenance contract is an agreement between different parties - in this case, a maintenance provider and its customer- which grants them legal rights and obligations. In particular, it sets out the terms and conditions of maintenance services, and commits the service provider to delivering the agreed services. Once signed and validated, the contract becomes the law for both parties, and they must abide by it.
Possible interventions include assistance to the customer, such as repairs and prevention of breakdowns, whether in IT maintenance, industrial maintenance or in the building sector.
Let's take a closer look at the maintenance contract. What are its functions? What does it contain, and how do we understand it? Whether you're a maintenance service provider or a service customer, you're sure to find essential information on this important aspect of maintenance management. Let's get to the heart of the matter!
The maintenance contract: definitions and functions
What is maintenance?
Maintenance covers all operations designed to ensure the smooth running of equipment, machines or IT devices. These may be preventive (overhaul, cleaning, wear prevention, checks to anticipate malfunctions, etc.) or curative (repairs, replacement of parts, troubleshooting, correction of computer bugs, etc.).
Maintenance is an umbrella term that covers many different aspects, and the operations involved will vary depending on the :
- field of application: industry, construction, IT equipment, etc. ;
- type of equipment : maintenance of hardware (machines, etc.) or intangible assets (websites, software, etc.);
- desired result: durability of the asset, availability or frequency of use over a given period of time, etc. ;
- means of technical intervention: physical intervention, remote intervention via technical support or management software, etc.
Depending on the situation - and there are many - the operations involved are preventive maintenance, predictive maintenance or corrective maintenance.
What's the difference with a maintenance contract?
While there is a wide range of different types of maintenance, contracts can also be differentiated. We can distinguish between :
Maintenance contract
This document is drawn up when the parties agree that the maintenance company will intervene on a regular basis to check that the installed equipment is working properly. Checks are scheduled and included in the contract.
Any other intervention or replacement of unscheduled equipment will be invoiced additionally. If significant technical problems are noted, then the service provider undertakes to draw up an estimate.
💡 For example: when installing an air-conditioning system, a maintenance contract provides for cleaning and checking the unit's operating condition during annual visits.
Simple maintenance contract
The simple maintenance contract goes beyond the maintenance contract. It seals the service provider's commitment to the proper operation of the equipment installed: any intervention in the event of a breakdown does not entail additional invoicing.
Maintenance work is therefore free of charge, with prices fixed in advance, either as a lump sum, depending on the resources deployed and the time spent on the work, or subject to a spending ceiling. However, rates do not include the cost of parts and materials used for repairs.
💡 For example: in certain telephony offers, the company undertakes to intervene in the event of a service interruption, but the parts required for the repair remain at the customer's expense.
Full maintenance contract
The full maintenance contract commits the company to ensuring the proper operation of the equipment provided, to intervening in the event of a breakdown, and to supplying replacement equipment. This is a "turnkey" contract, which includes both preventive and corrective maintenance, plus the necessary spare parts.
💡 For example: a maintenance contract for a company's information system, as part of an outsourcing service, may include maintenance, required parts and real-time supervision, all with a subscription fee.
Functions and objectives of a maintenance contract
For the service provider, this document precisely defines the scope of future interventions required to maintain an asset, including their duration, deadlines, and the rates applied. Foreseeable demands are therefore listed in a maintenance contract, which provides for their management.
☝ Generally, the contract is based on an annual subscription : an agreement on prices is reached by the parties beforehand. Rates do not always include the cost of parts or materials required for repairs, for example.
This document is also of interest to the customer. To keep his business productive, he draws up a contract to define his servicing and maintenance needs. The aim: to anticipate and foresee incidents, malfunctions or breakdowns. The aim is to keep equipment and machines in optimum working order, so as to guarantee their operation and, consequently, their performance.
☝ Subscribing to such a contract has many advantages: in the event of a breakdown, it enables intervention to be carried out as quickly as possible and with greater efficiency than conventional breakdown services, because operators have become familiar with the products, the customer file and its specific features.
What are the different types of maintenance contract?
IT maintenance contracts
When it comes to IT, maintenance contracts are of significant importance for today's companies, especially when most of their activity is computerized. IT equipment requires special care to avoid breakdowns that could jeopardize a company's production or the activity of a service provider.
This contract includes troubleshooting, tuning, repairing, upgrading and checking hardware or virtual equipment, according to a defined scope of action.
Software maintenance, which is evolutionary and focuses on the development of applications and software, is generally covered by an independent contract.
Industrial maintenance contracts
The industrial sector is vast, and is itself divided into sub-sectors such as food processing, metallurgy and pharmaceuticals. In all cases, companies in this sector generally enter into a maintenance contract with a specialized service provider for their industrial equipment.
There are also different types of maintenance, both preventive and curative, whose objectives are specified in the contract:
- for prevention: diagnosis of potential damage to mechanical or IT equipment,
- for correction: troubleshooting or repair in the event of damage to systems.
Building maintenance contracts
Building maintenance contracts are used in property management, whether in the private or public sector. They are generally drawn up for the maintenance of a site, a building and its associated equipment.
Contracts can be found in a number of sub-areas, such as heating and air-conditioning, ventilation and air conditioning, plumbing, fire safety systems (SSI), flat roofs, elevators and so on. If you are in charge of or manage maintenance services, make sure that the contract specifies the nature of the work and the technical field concerned.
What you need to know about maintenance contracts
As with any contract, the law of the parties applies and governs the contractual relationship. In the event of breach, the provisions of the contract are binding. A fixed-term contract can only be terminated by mutual agreement of the parties, or at the end of the contract.
Here are some other important points to consider:
Maintenance contract clauses
A maintenance contract is similar in structure to a service contract, with basic and specific clauses. These include (but are not limited to)
- mention of the parties involved,
- the purpose of the service,
- price and payment terms,
- duration of the contract,
- the service provider's obligations,
- the customer's obligations,
- liability,
- dispute resolution,
- applicable law and jurisdiction, etc.
The various parts of the contract must clearly and precisely define the services and needs to which they correspond, and avoid any ambivalence on the technical or organizational level. They also specify the conditions under which the contract applies.
The legal clauses are often supplemented by commercial clauses (applicable rates), technical clauses (output, production capacity, utilization potential) and sometimes health and safety clauses (for certain maintenance work).
Obligations of the parties
The parties to the contract have duties and obligations towards each other.
👉 On the service provider's side: he undertakes to do everything necessary to carry out the work specified in the contract and within the agreed deadlines. More specific clauses may impose other obligations.
👉 On the customer's side: above all, the customer undertakes to pay the agreed price for maintenance services. If he fails to do so, the service provider may suspend performance of the contract. Another obligation is to provide the service provider with sufficient information and resources to carry out its work.
Drawing up a maintenance contract: important points to bear in mind
To help you draw up a contract, there are a number of models and examples of standard contracts available, which can serve as a good basis for familiarizing yourself with the structure of the contract and the paragraphs to be included.
Since the commercial and administrative aspects of each company are specific, a maintenance contract template, such as can be found free on the Internet, may have its limits.
To ensure personalized, and therefore more effective, interventions, it is preferable to have a customized contract drawn up by a lawyer. While this represents a cost, it guarantees :
- reliability,
- customized to your needs,
- compliance with the latest legal provisions.
What's more, you'll benefit from a legally sound contract, and be kept informed of all the details. Maintenance contract prices vary, depending on the expert consulted.
What about storage and archiving?
Contracts can be produced electronically or on paper. In both cases, they are subject to administrative document retention obligations.
For contracts concluded as part of a commercial relationship, the legal retention period is 5 years.
Simplify the management of your maintenance contracts
The benefits of management software
A software solution for monitoring and managing your contracts, such as a CMMS (Computerized Maintenance Management System), helps companies to plan and organize the maintenance of their equipment and services.
As for service providers, maintenance and tour management software enables them to plan interventions and optimize the movements of their field teams, who access all up-to-date information, including that provided for in the contract, from a mobile application.
Benefits include
- data centralization and access for multiple users,
- tracking and tracing of interventions,
- decision-making support with the production of activity reports,
- time and productivity savings ,
- optimized service quality, etc.
Here are a few examples:
- BigChange is another tool dedicated to maintenance management that helps you meet your service commitments: it combines, among other things, a back-office for managing customer relations and tracking the history of interventions and maintenance contracts, a mobile application for accessing them in the field, and a customer portal for consulting them.
- Dimo Maint is a complete CMMS solution that facilitates maintenance management and doubles as an after-sales service. In addition to optimizing the management of supplier and service provider contracts, it organizes and schedules activities, tracks interventions by team or by equipment, and monitors workloads.
- Kizeo Forms is a tool for creating 100% customizable forms. It makes it easy to take notes during customer meetings to draw up the maintenance contract without omissions, as well as to consult contract information and report on interventions, in complete mobility.
- Praxedo is a complete service management software package for field technicians. The solution features a web interface for organizing technician schedules and tracking the progress of maintenance operations. Thanks to its mobile app, technicians can consult information relating to their work, such as technical data sheets, warranty contracts, work histories, etc., in just a few clicks. Added bonus: the app can be consulted offline, even if your employee is in a white zone.
- Twimm offers specialized CMMS for the building and real estate industries: if you're a real estate service provider, Twimm manages your various maintenance contracts centrally; if you're a real estate manager or owner, Twimm.me manages your maintenance contracts and liaises with your various service providers.
These solutions are modular and multi-business: don't hesitate to ask for more information and request a trial version to choose the formula best suited to your organization's needs.
What about dematerialized maintenance contracts?
Since a digital contract has the same legal value as a paper document, any contract can be drawn up in electronic form. A CMMS solution enables you to manage all your contracts online, with the option of electronic signature for some of them.
If your chosen tool doesn't include this feature, you can also opt for an electronic signature solution or electronic document management (EDM) software.
You gain in simplicity, ensure secure online storage and guarantee the integrity of the dematerialized document throughout its lifetime, thanks to digital archiving.
Final tips
To avoid any disputes or breaches of contract, it is essential, as with any contract, to carefully draft the maintenance contract and clearly define the scope and objectives of the services required.
A contract can be drawn up as part of a company's maintenance policy, based on an analysis of risks and costs, in order to make decisions on the maintenance operations to be envisaged.
Here are the latest recommendations for concluding a maintenance contract:
- precisely define the purpose and scope of the contract,
- clearly define terms and responsibilities,
- choose the right type of maintenance,
- choose an appropriate pricing formula,
- understand your obligations.
Finally, to optimize your contract management, don't hesitate to turn to a specialized software solution. To find the one that's right for you, draw on a set of specifications detailing all the functions that are essential to your business. All that's left to do is make your choice!
Do you already use maintenance management software? If so, what benefits does it bring you?
Article translated from French