Maintenance contracts – AMC and CMC- Aditya Ekawade



Any electronic product requires timely service to function properly.

In hospitals, there is always a danger of undesirable machine breakdown. Preventive maintenance can save a lot of time and money. With the help of preventive maintenance services (PMS), it is possible to predict and identify parts which are at verge of collapse.

 

Types of maintenance contracts: AMC and CMC.

  1.        AMC stands for annual maintenance contract.

A manufacturer company provides the service through AMC by themselves or with the help of service providers.

The contract is usually for the period of 1 year and can be extended up to three years or five years as per the mutual understanding of both the parties.

Usually the service providers give only service support and would charge separately for every part under AMC. However, in some cases, few parts are replaced during the visit by service engineer when it is mentioned in AMC contract that limited parts will be replaced.

  1.        CMC stands for comprehensive maintenance contract.

It includes prompt service from the company or service providers.

The contract is usually for the period of 1 year and can be extended up to three years or five years as per the mutual understanding of both the parties.

 It includes repairs and replacements of faulty parts. Having the contracts gives the benefits such as consumables (which are not part of contract) being available at reduced costs.

CMC is costlier than AMC because it includes the costs of spares as well.

   Essential components of AMC & CMC:

  1.        Name and address of both the parties
  2.        Details  of the equipment under contract
  3.        Duration of contract
  4.        Nature of AMC (comprehensive or non-comprehensive)
  5.        Cost of the contract
  6.        Number of visits and breakdown calls by the service engineer
  7.        Payment terms
  8.        Penalty clause
  9.        Termination
  10.        Signature
  11.        Seal 

 

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