Guidelines for AMC

In any transaction in which a seller sells equipment or products to a buyer for which periodic servicing or maintenance is necessary for proper operation, it is desirable for both parties to engage in an agreement on the conditions of maintaining that equipment or product. These agreements, known as an Annual Maintenance Contract (AMC), are critical to formalizing this process.

Customers value AMCs because they preserve their investments in goods and services, defend against unanticipated downtime, and ensure that they will always have access to a service specialist. As a service provider, AMCs assist you in planning your years’ service schedule, estimating how many technicians you will need, and ensuring that you develop strong, long-term connections with a devoted client base.

What is an Annual Maintenance Contract (AMC)?

An annual maintenance contract is a contract between a firm and a provider that specifies the continuing maintenance of machinery or property purchased from the provider. The annual maintenance contract guarantees that the service provider will repair or replace equipment or products sold to the customer when they fail to function or as otherwise agreed between the two parties in order to minimize the impact of downtime or irregularities in ensuring business continuity.

Machinery and any other technology or business systems that require post-purchase care and maintenance can all benefit from annual maintenance services. AMCs are undoubtedly more widespread in some businesses than others. Manufacturing, healthcare, have higher yearly maintenance requirements than, say, an office.