Service Agreements

Service Agreements are probably the single most important way to keep your expensive and mission-critical equipment in working order for a long lifespan.

Regularly scheduled equipment care can increase the life of your investment.

If you open any recent issue of Buildings, ASHRAE Journal, Design Build, Air Conditioning, Heating, Refrigeration NEWS or other facilities management related publication, it is likely that you will see an article on maintenance services trends.

Full service maintenance agreements are becoming a popular trend because business owners like you have realized the importance of staying focused on your core activities and customer needs. Operational maintenance is not necessarily your strength or critical to your direct revenue-generating activities. Depending on how they are written and maintained, full service maintenance agreements are an efficient way of keeping your expensive and necessary equipment in perfect working condition.

Full-Service Maintenance Agreements are desirable for building owners and facilities managers because they offer:

Active control: like buying an insurance policy, your equipment is protected from unexpected expenses because you can budget the service agreement expense.

Peace of mind: you can focus on your other business needs.

Excellent equipment condition: your equipment receives timely, consistent care and service rather than waiting until a problem occurs and receiving service on a broken piece of equipment that could be impacting your bottom line.

A a comprehensive contract should be considered in the second third of the life of the equipment.

During the first third of the life of equipment, you can manage the equipment using a regularly scheduled preventative agreement.

The second third of the equipment's lifespan is when you should expect some repair costs. This is when you should consider a service agreement. If the equipment is well-maintained during this time frame, you will most likely get the full use out of your equipment. The following guidelines can help you decide whether you need a maintenance agreement.

Age consideration

System	Average Lifespan in years	When to purchase Maintenance Agreement
Packaged Systems	8-12	3-6
Centrifugal Chillers	10-17	4-6
Reciprocating Chillers	10-15	4-5
Absorption Chillers	10-15	4-5

Extensive repairs during the last two-three years of service may indicate that a long-term contract may make a lot of sense for the equipment.

When you cannot afford to have any budget variances.

It is a common mistake to assume that your equipment is covered under a manufacturer's warranty just because it is new. You can encounter critical repairs that are not covered. If you have any questions on this rapidly growing industry trend, please call us. We specialize in multi-year comprehensive service agreements for our valued clients.

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