What is a maintenance agreement for office equipment? A maintenance agreement for office equipment is a service contract providing for an outside company to keep your office equipment in good operating condition, or to come in when called to fix a problem with the equipment. If you think about it, almost every business utilizes electronic equipment in one way or another. Each piece of equipment requires periodic maintenance over the course of time in order to keep it in working condition. When equipment breaks down, there are costs associated with repairing it. Manufacturers offer maintenance agreements on their equipment to deal with the financial uncertainty associated with equipment maintenance and repair. In exchange for a fixed annual fee, the manufacturer will bear the financial risk and handle the equipment maintenance and repairs. Maintenance agreements cover equipment for a certain time period, which should be clearly identified in the agreement. In the absence of a maintenance agreement, an equipment owner can elect to pay for repairs on a time & materials basis (T&M); this means that the owner pays for parts, labor, and travel on an as-needed basis. However, several closely spaced equipment failures can severely impact a companys cash flow.
Posted on: Thu, 24 Oct 2013 17:25:07 +0000
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