Friday, January 16, 2009

Sample Service Contract

Sample Service Contract
[for your reference only, we recommend you use you own version]
1. Cover Letter
2. Service Contract
3. Schedule
4. Scope of Work

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1.
Cover Letter

Our Reference:
Date:

Dear Sirs/Madam: [customer's person name]
Proposal/Renewal of Service Contract

We take great pleasure in presenting to you the service agreement proposal. Our plan is unique in the compressed air business; design to keep your compressed air equipments operating at optimum and maximum efficiency, 365 days a year, at the lowest possible running cost.

It is a well-proven and widely recognized that, preventive maintenance that provides regular, professional service and repair, over a period of time will save you operation cost, thus providing maximum operational efficiency.

It give your compressor optimum performance, maximum productivity and financial security. With fixed maintenance [parts & labour], you will avoid hidden surprises and unnecessary breakdown of your compressor, it provide you total peace of mind to focus other more urgent task.

Our technicians are regularly trained, updated with the latest service development, and equipped with the latest tools.

We are confident that you will consider our proposal favourably.

On your approval, kindly endorse the two copies of this agreement and returned to our office with advance payment. The original copy will be returned to you after processing.

Validity of this proposal is 30 days from the date of this letter.

Assuring you of our best service.

Yours Sincerely,




--------------------------------
[Name & position]

..............................................................................................
2.
Service Contract

Our company offers service arrangement under contractual basis. This arrangement is highly recommended, not only planned service could be arranged, it also ensures the required maintenance is carried out, minimizing unforeseen breakdown.

This contractual arrangement, covers two different activities, they are:

A.
Inspection Contract;
Visit at pre-determine interval to conduct inspection and recommend any necessary service or repair necessary!

B.
Maintenance Contract;
Visit at pre-determine interval to carry out prescribed work, including periodic service.

1.
AGREEMENT


Between
[Customer name & details]

Hereafter referred to as the Customer.

2.
This Agreement cover the following equipment:

Brand:
Model:
Serial Number:
Horsepower:
Number of Units:
Installed at:
Contact Person:
Tel:
Fax:

Remarks:

3.
Validity

This agreement is valid for [..............] year(s), starting from the date [............].
This agreement can be terminated by either party in writing with one-month advance notice.

4.
Extent of this Agreement
4.1
Preventive maintenance will be carried out [...........] times a year.
4.2
The equipment covered by this agreement shall not exceed [.............] hours a year.
4.3
The inspection and maintenance of the equipment will be according to manufacturer's recommendation.
4.4
Agreement price includes labour and specific parts required for each maintenance visit, unless otherwise stated in cluase 2.

5.
The Agree price will be RM[..............] per year.
Invoice will be carried out once a year prior to the first maintenance visit. Payment must be received prior to the first maintenance visit.
{Note: Price is locked in for the year, guarantee no price increase for the year}

6.
The Responsibility and Rights of both parties.


6.1
The customer will perform the daily and weekly maintenance in accordance with compressor's instruction book. The customer here-by confirms that he has a copy of the instruction book, and ensures the compressor logbook is filled in daily.
6.2
[Company name] may contact the customer before the planned time and date for each visit. The customer will then ensure the compressor equipment is available for maintenance.
6.3.
Maintenance will be carried out during normal working hours, unless specified in clause 2. Any extra cost as a result of deviation in original schedule will be invoiced to the customer accordingly and separately.
6.4
If any major changes occur in the operation or site conditions of the compressor equipment, this agreement will become null and void. This includes factors such as ventilation, power and water supply.
6.5
[Company name ] will submit a service report on the condition of the compressor equipment to the customer after each preventive maintenance visit.
6.6
[Company name] will not accept any liability whatsoever for any bodily injury to any person, damage to property or other consequential loss, unless it can be proven that [company name] has been guilty of gross negligence.
6.7
The customer will give all necessary assistance by providing necessary lifting equipment, lighting etc.
6.8
In the event of any supplemental work arising as a result of the maintenance inspection that is not included in this agreement, [company name], however can and will carryout this work and invoice the customer separately based on customer approval and acceptance.

7
Limitation of Responsibility

7.1
[Company name] reserves the right to refuse or stop any further service if any outstanding bills are not paid.
7.2
[Company name] will not be responsible for any compressor equipment malfunction or damage if routine maintenance according o clause 6.1 is neglected or customer's failure to comply with repairs recommended by [company name].

8.
[Company name] standard warranty of 3 months or 2000 hours applies to all repair work, including part, whichever come first.


Signed for and on behalf: [customer]

Signature:
Company chop:
Name:
Position:
Date:

Signed for and on behalf: [company name]


Signature:
Name:
Position:
Date:

.............................................................................................

3.
Schedule

Average Running Hours per Year

2,000 hours +++++ 4,000 hours +++++ 6,000 hours +++++ 8,000 hours
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Y
E
A
R

1
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Y
E
A
R

2
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Y
E
A
R

3
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Y
E
A
R

4
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Y
E
A
R

5
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4.
Scope of Work

Period:
1,000/2,000 hours, Monthly visit
Scope of Work:
Measurement of temperature, condition monitoring, air jet clean coolers, motor and compressor.

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Period:
1,000/2,000 hours, Every 3 months
Scope of Work:
Replace oil filter, clean air filter [replace if necessary], replace compressors coolant, external air jet clean compressors, motor and coolers.

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Period:
4,000 hours or 1 year (12 months)
Scope of Work:
Replace all items from above and, replace air/oil separator element, service moisture trap, grease main motor. Change belts if belt driven units.

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Period:
8,000 hours or 2 years
Scope of Work:
All of the above, plus, service oil stop valve, inlet valve, Vent valve, MPV, Replace belts.

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Note:
Scope of works may vary for different compressors and model, based on factory's recommendation.

.............................................................................
Extended Warranty Options:
* Air end Cover: Y/N
* 5 years warranty: Y/N

Value Added Options:
* After working hours service: Y/N
* Off-day Service: Y/N

Accessories:
* Dryer service: Y/N
* Main Line Filter Service: Y/N
* Air Receiver auto-drain service: Y/N
* Others (please specified): Y/N
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