Para 8.4 - Maintenance Contracts | KartavyaDesk

Original Rule Text

Here, the OEM supplier of the goods may also quote, and his quotation, if received, is to be considered along with other quotations received. In some situations, OEM manufacturers/suppliers of goods authorise certain service providers to provide AMC support. In such cases, the Service provider must produce such authorisation/ letter from the OEM, confirming technical and spares support to the service provider. 5. The details of the services required for the maintenance of the goods, the required period of maintenance and other relevant terms and conditions, including payment terms, are to be incorporated in the tender enquiry document. The terms of payment for the maintenance service will depend on the nature of the goods to be maintained as well as the nature of the services desired. Generally, payment for maintenance is made on a halfyearly or quarterly basis. 6. A Service Level Agreement (SLA) may be incorporated in complex and large maintenance contracts. SLA should indicate guaranteed levels of service parameters like - %age uptime to be ensured, Performance output levels to be ensured from the equipment, a channel for registering service requests, response time for resolving the request, Channel for escalation of a service request in case of delay or the unsatisfactory resolution of the request, monitoring of Service Levels etc. This would include the provision of helplines, complaint registration and escalation procedures, response time, percentage of uptime and availability of equipment, non-degradation in performance levels after maintenance, maintenance of an inventory of common spares, use of genuine spares, and so on. The maintenance contract may also include penalties (liquidated Damages) for unacceptable delays in responses and degradation in the performance output of machines, including provisions for terminations. 7. It should be indicated in the tender documents whether the maintenance charges would be inclusive of visiting charges price of spares (many times, consumables such as rubber gasket, bulbs, and so on, are not included, even though major parts may be included), price of consumables (fuel, lubricants, cartridges, and so on). If the costs of spares are to be borne by the procuring entity, then a guaranteed price list should be asked for along with the bids. It should also be clarified whether room/space, electricity, water connection, and so on would be provided free of cost to the contractor. 8. A suitable provision should be incorporated in the tender enquiry document and the resultant maintenance contract, indicating that the prices charged by the maintenance contractor should not exceed the prevailing rates charged by him from others for similar services. While claiming payment, the contractor is also to give a certificate to this effect in his bill. 9. If the goods to be maintained are sophisticated and costly, the tender enquiry document should also have a provision for obtaining performance security. The amount of performance security will depend on the nature of the goods, the period of maintenance, and so on. 10. Sometimes, the maintenance contractor may have to take the goods or some components of the goods to his factory for repair, and so on. On such occasions, before handing over the goods or components, valuing more than Rupees One Lakh, a suitable bank guarantee is to be obtained from the firm to safeguard the purchaser's interest. 11. Sometimes, during the tenure of a maintenance contract, especially with a longer tenure, it may become necessary for the purchase organisation to withdraw the maintenance contract due to some unforeseen reasons. To take care of this, there should be a suitable provision in the tender document and in the resultant contract. Depending on the cost and

What This Means

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

• •OEMs can bid for maintenance contracts for their own goods.
• •Service providers claiming OEM authorization must provide proof.
• •Tender documents must clearly define the scope of maintenance services, payment terms, and service level agreements (SLAs).
• •Maintenance contracts should include clauses on pricing, performance security, and penalties for non-compliance.
• •Tender documents should specify whether maintenance charges include spares, consumables, and other related costs.

Practical Example

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.