Why 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, this document sets out the terms and conditions of the maintenance services and commits the service provider to providing the agreed services. Once signed and validated, the contract becomes the law for the parties and they must comply with it.
Possible interventions include assistance provided to the customer, such as repairs and fault prevention, whether in IT maintenance, industrial maintenance or in the building sector.
Let's take a closer look at what a maintenance contract is for. What are its functions? What does it contain and how do we understand it? Whether you are a maintenance service provider or a service customer, you are sure to find essential information on this important aspect of maintenance management. So let's get to the heart of the matter!
The maintenance contract: definitions and functions
What is maintenance?
Maintenance covers all operations used to ensure that equipment, machines or IT devices function properly . It may involve preventive measures (overhaul, cleaning, prevention of wear and tear, checks to anticipate any malfunctions, etc.) or curative measures (repairs, replacement of parts, troubleshooting, correction of computer bugs, etc.).
Maintenance is a general 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 relate to preventive maintenance, predictive maintenance or corrective maintenance.
What's the difference with a maintenance contract?
While there is a wide range of 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 regularly 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 any major technical problems are identified, then the service provider undertakes to draw up an estimate.
💡 For example: when an air conditioning system is installed, a maintenance contract provides for the cleaning and checking of the operating condition of the appliance during annual visits.
Simple maintenance contract
A simple maintenance contract goes beyond the maintenance contract. It seals the service provider's commitment to ensuring that the equipment installed is working properly, so there is no additional charge for any work carried out in the event of a breakdown.
Maintenance work is therefore free of charge, with prices fixed in advance, in the form of a lump sum, depending on the resources deployed and the time spent on the work, or subject to a spending ceiling. However, the rates do not include the cost of parts and materials used for repairs.
💡 For example: in some telephony offers, the company undertakes to intervene in the event of a service interruption, but the parts needed for the repair remain at the customer's expense.
Full maintenance contract
The full maintenance contract commits the company to ensuring that the equipment provided functions properly, 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, in addition to the necessary spare parts.
💡 For example: a maintenance contract for a company's information system, as part of an outsourcing service, may include maintenance, the parts required and real-time supervision, all with a subscription fee.
Functions and objectives of a maintenance contract
For the service provider, this document provides a precise framework for any future work required to maintain an asset, including the duration and deadlines, as well as the rates applied. Foreseeable requests 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. The rates do not always include the cost of parts or equipment required for repairs, for example.
This document is also of interest to the customer. To keep their business productive, they draw up a contract to define their servicing and maintenance needs. The aim: to anticipate and foresee incidents, malfunctions or breakdowns. The aim is to anticipate and anticipate incidents, malfunctions and breakdowns, keeping equipment and machinery in optimum working order to guarantee their operation and, consequently, their performance.
☝ Signing up to this type of contract has a number of advantages: in the event of a breakdown, it allows us to intervene as quickly as possible and with greater efficiency than conventional breakdown services, because the operators are familiar with the products, the customer file and its specific features.
What are the different types of maintenance contract?
IT maintenance contracts
In the IT sector, maintenance contracts are of significant importance to today's businesses, especially when most of the activity is computer-based. IT equipment requires special care to avoid breakdowns that could jeopardise a company's production or the activity of a service provider.
This contract covers troubleshooting, adjustment, repair, improvement and monitoring of hardware or virtual equipment, within a defined scope.
Software maintenance, which is progressive 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 sign a maintenance contract with a specialist service provider for their industrial equipment.
There are also different types of maintenance, both preventive and corrective, the objectives of which are specified in the contract:
- for prevention: diagnosing potential damage to mechanical or IT equipment,
- corrective maintenance: troubleshooting or repair in the event of damage to systems.
Building maintenance contract
Building maintenance contracts are used in property management in both the private and public sectors. They are generally drawn up to cover the maintenance of a site, its buildings and 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, flat roofs, lifts, etc. If you are the technical manager or manager of maintenance services, make sure that the contract specifies the nature of the work and the technical area 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 termination, the provisions of the contract will apply. 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 has a similar 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
- the price and payment terms,
- the duration of the contract
- the obligations of the service provider,
- the obligations of the customer,
- liability,
- dispute resolution,
- applicable law and jurisdiction, etc.
The various parts of the contract must clearly and precisely define the services and the needs to which they correspond, and avoid any ambivalence in technical or organisational terms. They should also specify the conditions under which the contract applies.
The legal clauses are often supplemented by commercial clauses (applicable rates), technical clauses (production rate, production capacity, utilisation potential) and sometimes health and safety clauses (for certain maintenance work).
The obligations of the parties
The parties to the contract have duties and obligations towards each other.
👉 The service provider undertakes to do everything necessary to carry out the work specified in the contract and within the agreed timescales. More specific clauses may impose other obligations.
👉 On the customer's side: the customer undertakes first and foremost to pay the agreed price for the maintenance services. If they fail to do so, the service provider may suspend performance of the contract. The customer also has another obligation, namely 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
There are models and examples of standard contracts available for drafting contracts, which can serve as a good basis for familiarising yourself with the structure of the contract and the paragraphs to be included.
Given that 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 limitations.
To ensure that the work is personalised, and therefore more effective, it is preferable to have a tailor-made contract drawn up by a lawyer. While this may cost money, it guarantees :
- reliability
- customisation to suit your needs
- compliance with the latest legal provisions in force.
What's more, you'll benefit from a legally sound contract, and you'll be kept informed of all the details. The prices that apply to a maintenance contract are variable and depend on the expert consulted.
What about storage and archiving?
Contracts can be produced in electronic format or on paper. In both cases, they are subject to the retention requirements for administrative documents.
For contracts concluded as part of a commercial relationship, the legal retention period is 5 years.
Make it easier to manage your maintenance contracts
The benefits of management software
A software solution for monitoring and managing your contracts, such as a CMMS (computer-aided maintenance management system), helps companies to plan and organise the maintenance of their equipment and services.
As for service providers, maintenance and route management software enables them to plan interventions and optimise the movements of their teams in the field, who can access all the latest information, particularly that provided for in the contract, from a mobile application.
The benefits include
- Data centralisation and access for multiple users,
- Tracking and tracing of interventions,
- decision-making support with the production of activity reports,
- time and productivity savings ,
- optimised service quality, etc.
Here are just 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 maintenance work and contracts, a mobile application for access 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. As well as optimising the management of supplier and service provider contracts, it organises and schedules activities, tracks interventions by team or by equipment, and monitors workloads.
- Kizeo Forms is a tool for creating 100% customisable forms. It makes it easy to take notes during the customer meeting to draw up the maintenance contract without omissions, as well as consulting contract information and reporting during interventions, in complete mobility.
- Praxedo is a comprehensive service management software package designed for technicians in the field. The solution offers a web interface for organising technicians' schedules and tracking the progress of maintenance work. Thanks to its mobile app, technicians can consult information relating to their work, such as technical data sheets, warranty contracts and work history, in just a few clicks. An added bonus: the app can be consulted offline, even if your employee is in a white zone.
- Twimm offers a specialised CMMS for the building and property industries: if you are a property service provider, Twimm manages your various maintenance contracts centrally; if you are a property manager or owner, Twimm.me manages your maintenance contracts and liaises with your various service providers.
These solutions are modular and multi-skilled: don't hesitate to ask for more information and request a trial version to choose the formula best suited to your organisation's needs.
What about paperless 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 allows you to manage all your contracts online, with the option of electronic signatures for some of them.
If the tool you have chosen does not include this option, 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 dematerialised document throughout its storage thanks to digital archiving.
Final tips
To avoid any disputes or breaches of contract with the maintenance service, it is essential, as with any contract, to take care when drafting the maintenance contract and to clearly define the framework 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 considered.
Here are the latest recommendations for concluding a maintenance contract:
- Define precisely the purpose and scope of the contract,
- clearly define the terms and responsibilities
- Choose the right type of maintenance,
- choose an appropriate pricing formula,
- knowing your obligations.
Finally, to optimise the management of your contracts, don't hesitate to turn to a specialised 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 is to make your choice!
Do you already use maintenance management software? If so, what benefits does it bring you?
Article translated from French