In an ideal world, a maintenance contract provides the assurance that the assets essential to running your operations, from IT equipment to building infrastructure, will be well-maintained. Without the right management, though, maintenance contracts can feel overwhelming and ultimately increase overall risk to your organization – in other words, the complete opposite of what they’re supposed to provide.
Proper maintenance is critical for all of your devices, systems, and structures, not just for their reliable operation, but also for purposes of compliance, security, and cost savings. For example, repairing something can cost more than 10 times what it would have taken to proactively maintain it. Meanwhile, maintenance represents the majority of the total cost of ownership of some types of equipment, making it important to have a sustainable strategy for managing all the contracts involved.
Let’s look at some of the most common issues that complicate maintenance contract management and then how to solve them.
1. Discrepancies between contracts
As the number of maintenance contracts in your organization increases, it’s possible that critical discrepancies will go overlooked. A contract might contain more coverage that you really need, gaps that would leave you exposed if something broke down, or inconsistencies with other documents.
This issue is similar to how accounting departments can sometimes struggle to find a single source of truth when they close their books. It requires time and effort to reconcile everything and get an accurate picture of how the organization is performing.
2. Too many contracts
It’s all too easy for maintenance contracts to proliferate and become seemingly impossible to keep track of. An excessive number of contracts doesn’t naturally translate into more or better coverage, though.
On the contrary, it can become a tax on productivity as employees have to scrutinize the language in them and make sure they’re all up-to-date and aligned with business requirements. Consolidation, when and where possible, is advisable for avoiding such time-consuming complexity.
3. Keeping contracts updated
It’s common for maintenance contracts to follow an annual cycle. The customer might sign a contract with an expert provider that covers repairs and replacements of certain assets for one year.
However, this arrangement can be limiting, especially if your organization has rapidly evolving needs (e.g., frequent IT and tech upgrades). For that reason, it’s better to have the option to make updates to contracts on a shorter timeline, whether that’s monthly, weekly, or even daily.
4. Ensuring the right service level
Related to our first point about contract discrepancies, it’s possible that contracts won’t even provide the level of service you think you’re signing up for. You might be overpaying because of an outdated or error-filled contract.
Resolving this issue and the other three above requires working with an experienced partner, such as LaSalle Solutions. Our cloud-based management platform, LAMP, lets you take back control of the maintenance contract lifecycle and avoid wasting time and money on trying to know what your maintenance contracts really say and whether they align with your current operational requirements.
Our team will perform an initial audit to baseline everything and ensure that you can reliably monitor updates to your contracts, leases, and more. We’ll then help you get started with LAMP so that management is straightforward and scalable.
Get Control of Your Maintenance Contracts
Request a demo of LAMP to learn how you can regain control over your equipment lifecycle and maintenance contracts.
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