Computer Hardware Maintenance Agreement

Computer hardware is one of the primary requirements for any business organisation. Computers that are well configured and fast in processing are critical requirements for the development of a business. The primary challenge in maintaining optimal performance is considered to be new developments that can render present investments obsolete. There is no denying that computer peripherals are expensive. Therefore, there should be considerable attention given to computer hardware in terms of periodic maintenance. This can address issues that may have crept into the hardware of the computer devices as well as for replacing old parts for better performing ones.

What Is A Hardware Maintenance Agreement?

A Hardware Maintenance Agreement is a legal document created between a company and a service provider. The service provider is usually a business entity specialised in maintaining computer peripherals. It may as well be an individual expert in hardware and networking engineering.  The agreement sets forth the terms and conditions of the service to provided by the service provider to the company.

What To Include In A Hardware Maintenance Agreement?

A Hardware Maintenance Agreement essentially contains all the details about the parties and the terms and conditions to be followed by each party along with the payment details. Let us list out certain segments of a Hardware Maintenance Agreement.

Parties

It is very important to identify the parties. This involves writing of complete names of the individuals or organisations who are parties to it. The first party may be the company which needs professional service in maintaining the hardware. The second party may be referred to as the service provider.

Purpose

Here, the purpose may be recorded as the presence of considerable computer devices with the company that needs regular maintenance and the expertise of the service provider in the field, along with the acknowledgment of taking up the maintenance work.

Definitions

Since the agreement is related to information technology, it would be worth to mention the detailed definition of the terms present in the agreement. This would avoid ambiguities and hassles in future.

Types of Maintenance Services

It can be mentioned that during the term of the agreement, the service provider shall be required to provide the following types of maintenance:

Preventive Maintenance

Preventive maintenance shall include periodic visits to the company after fixed intervals. The purpose would be to check the functions of the hardware and to make necessary adjustments to keep them in good working condition. Such maintenance can be ideally conducted during corrective maintenance as described below. It will be necessary for the service provider to take appointments before preventive maintenance.

Corrective Maintenance

Corrective maintenance refers to the repairs carried out on defective hardware. This requires intimation from the company to the service provider regarding any malfunction. After that, the service provider can work on such equipment to restore them to the original condition.

The response time for corrective maintenance can be mentioned. It may be a few hours or in days.

Payments

All details pertaining to the payments should be mentioned explicitly. The payment cycle may be on a monthly basis. The appropriate amount may be released based on the total of maintenance activities undertaken in the previous month. The manner in which payments shall be made is to be specified in the agreement. The taxes to be paid to the Central and State Governments shall be mentioned in detail. Interest may be charged on the outstanding amount by the service provider in case of default by the company at pre-decided rates.

Exceptions

It should also be designed as to what defects shall not be covered in the servicing of the hardware. Regular maintenance may not cover anything apart from normal wear and tear and any damage due to the negligence of the service provider. Power failure or other problems with air conditioning and humidity control may damage the hardware. This may not be covered. In short, any damage caused due to negligence of the company may not be covered under regular maintenance.

Quotation

Whenever there is a failure other than regular wear and tear, the service provider shall commence work only after the company accepts a written quotation of the service provider.

Replacement

The service provider may be allowed to replace the whole of the equipment or parts that may be defective. Such parts are to be removed only after replacements have been arranged by the service provider. All serial numbers of replaced parts shall be recorded and sent to the company.

Other Details

Apart from the details mentioned above, the agreement should include the term during which the agreement shall be in force. Purchase of spare parts from the service provider, the manner in which the agreement may be terminated and penalties for violations need to be mentioned. It should also be decided as to the jurisdiction of the courts where disputes shall lie. Confidentiality is another important factor of a hardware maintenance agreement. The service provider shall be required not to reveal confidential information of the company to third parties.

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