How a Maintenance Agreement Helps Facility Managers

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Purpose:  To help facility managers decide if a maintenance agreement makes sense for their facility.


  • What factors do top facility managers consider when deciding whether or not to outsource a task?
  • What are the benefits of maintenance agreements?

FacilitiesNet conducted a survey to learn the benefits and drawbacks of maintenance agreements for Facility Managers.

David Cooper, Director of Facility Operations at Las Vegas Convention and Visitors Bureau said, "If we outsourced the monthly and annual maintenance on our chillers, we got an extended warranty on that equipment.  If we allowed the manufacturer or the installer to do the monthly service, then we got a two-year extension on our warranty period.  At no cost."

The survey showed that two common areas that are outsourced are the maintenance for chillers and boilers.


What are the benefits of maintenance agreements? 

By having an annual maintenance agreement, equipment failures are reduced, the life of the equipment is extended, and money is saved.

1) Equipment Failures

When you have a maintenance agreement, equipment failures have been proven to be reduced.  Inspections and maintenance are completed by trained, union service technicians that know this equipment like the back of their hands.  So you know that your HVAC equipment is well taken care of.  

2) Extend the Life of Equipment

Well-maintained HVAC equipment has a longer lifespan than equipment that is not regularly inspected, tested, and maintained.  Major repairs are less likely when the system is regularly maintained.

3) Reduce Costs    

Internal maintenance technicians won't need to buy special tools or train on complicated systems with a maintenance agreement.  The annual maintenance agreement includes tracking inspections, scheduling them, and completing them on schedule.  Costs are also reduced in utility bills.  The maintained HVAC system will be more efficient and reduce costs. 

4) Budgeting

It is easier to budget for the year with an annual maintenance agreement.  F.E. Moran Mechanical Services maintenance agreements are full-service.  Both repairs and preventative maintenance are completed for one fixed cost, taking away surprise bills.

5) Extended Warranty

When you have a maintenance agreement, often a warranty on the system can be extended.  With F.E. Moran Mechanical Systems, labor and parts get an extended warranty when they install and maintain the equipment.  The warranty is customized to each facility's needs to ensure that it covers all requirements including overtime labor, cranes, helicopters, and other facility needs. 



When deciding on what services to keep in-house or outsource, ask yourself four questions.

1) Is this task time-consuming?
2) Do I need special tools?
3) Do we need intensive training on this task?
4) If this system went down, would it have a big impact on the facility?

If you answered yes to any of these questions, a maintenance agreement is your best bet.


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