Annual Maintenance Contract (AMC)
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Annual Maintenance Contract (AMC)
An annual maintenance contract (AMC) is an agreement with a service provider for repair and maintenance of property used by your company. The service can be of any property owned by your company from the large manufacturing machines creating your products down to the computers and printers used in your offices. It can also include service to the building, the land, parking lots, etc. A company that cares about improving day to day operations should have an AMC in order to ensure quality of product and process.
Quality output from any machine depends on the machine’s long-term repeat performance. Machine maintenance is the key to this quality performance. You want the best personnel with the most expertise and experience to ensure a machine is working as it should.
An AMC can last from 1 to 3 years as agreed to by the parties. You can extend the term if you want to continue the service. Typically, AMCs include service support; however, you can add a comprehensive maintenance contract (CMC) that will cover IT support and replacement as well.
AMCs are common across many industries: healthcare, IT, retail, etc. An AMC agreement to maintain property is a general concept that can be applied to many needs. And most AMCs and CMCs contain similar provisions across all industries: