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Time and Material vs. Maintenance Agreements


We believe there are many advantages to maintenance agreements, including: 


1.   The better your maintenance provider can make your equipment perform, the better the chance they have at making a profit. Maintenance Agreements put the service company in the same financial position as you in regards to equipment performance. On a time and material basis, the more your equipment breaks, the more money your maintenance provider can make.


2.   Budgeting of maintenance costs is fixed with maintenance agreements. Contracts allow you and your maintenance provider to budget, plan appropriately, and stock for the correct parts. Time and material costs can fluctuate greatly, especially when expensive parts need replacing.


3.   Maintenance agreement customers receive priority on service calls. These customers have paid in advance, and therefore, they receive priority over a time and material customer.


4.   Because your maintenance provider (on a maintenance agreement basis) wants maximum uptime, they will stock more parts to achieve maximum uptime. And because they are paid in advance, they will have the capital to buy and stock those parts. It is not in the maintenance provider's financial interest to stock large quantities of parts for which he/she has not been paid to service time and material customers.


5.   A maintenance agreement usually provides a pre-set number of preventative maintenance inspections. The number is based upon equipment type, and usage. They provide cleaning, lubricating, adjusting and replacing of worn components. A maintenance agreement contract customer will get scheduled "PM's" that are designed to keep your equipment operational. This will also keep the equipment in top operating condition and assure a longer life. Without quality "PM's", a good piece of equipment can be worn out in less than half of its normal life.


6.   Most equipment requires some degree of maintenance or there will be a degree of deterioration of performance, life expectancy, appearance, or catastrophic failure.

Whether maintenance is performed on a maintenance agreement or a time and material basis, it must be timely and of high quality with your provider having your best interest in mind.


Whether maintenance is performed on a maintenance agreement or a time and material basis, it must be timely and of high quality with your provider having your best interest in mind.


Advent Automation, Inc., 12011 Guilford Road, suite 103, Annapolis Junction, MD 20701