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Maintenance/support contracts

  • 02-09-2004 8:35am
    #1
    pablo21
    Registered Users, Registered Users 2 Posts: 728 ✭✭✭


    Have any of you any experience with maintenance or support contracts? e.g, scope, costings, renewal frequency, anything at all that could help would be great!


Comments

  • #2
    WhiteWashMan
    Registered Users, Registered Users 2 Posts: 20,099 ✭✭✭✭WhiteWashMan


    yes, i have set up maintenance contracts as a third party maintenance provider for Sun kit.

    couple of ways to do it.

    first is have a complete inventry of all spares, machines etc you are covering, and then do up your costs based on that.

    second way is to use a fourth party and just add on a margin.

    third way is to put an engineer on site (great way to make money) at a day rate, and then get them to pay for any replacement parts that fail (will only work if you have a client with a HUGE kit inventory)

    fourth way is to arrange a call out schedule so that everything is billable. pretty much ad hoc work. not a good one. no constant contact with customer.

    fifth way is to set up a schedule where you go into a clients site every week or month for a falt fee, and replacement parts are then paid for by them (with your margin on top of course!)

    i always used an evergreen contract, which roles over every year. once they are set up they are pretty easy to maintain, and its really money for old rope.

    decide what sort of service you are going to offer. 4 hour on site, 4 hour response, 4 hour fix, next day fix. all these things will depend on what style of maintenance you want to do. you will never have 4 hour fix with no inventory. but getting inventory is damned expensive!

    but if you have inventory, and you have 10 clients with the same kit, you are laughing.

    hope that helps.
    :)


  • #3
    pablo21
    Registered Users, Registered Users 2 Posts: 728 ✭✭✭pablo21


    Excellent stuff! thanks a mill for your help!


  • #4
    PatPete
    Closed Accounts Posts: 27 ✭PatPete


    It used to be that bigger companies would expect to pay 10 -15% of original capital cost per annum. You should add options like response time eg 24x7 within 2hrs for premium payments and also include cover for third party trouble reports and causes.

    Check the MTBF for the h/w before you commit!

    Don't write an open cheque for problems that aren't your responsibility or within your ambit to resolve!


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