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Each piece of office equipment requires periodic preventative or planned maintenance to avoid failures, corrective maintenance to rectify faulty equipment, and sometimes software updates or consumable replacements over the course of time in order to keep it in working condition. If equipment is broken, employees cannot properly perform their job functions and productivity slows down or even stops. As a result, the equipment must be repaired properly, in a timely and cost effective manner. There are a few options to choose from to ensure this happens. Manufacturers offer maintenance agreements on their equipment to deal with the financial uncertainty associated with equipment maintenance and repair. In exchange for a fixed annual fee, the manufacturer will bear the financial risk and handle the equipment maintenance and repairs. Maintenance agreements cover equipment for a certain time period, which should be clearly identified in the agreement. In the absence of a maintenance agreement, an equipment owner can elect to pay for repairs on a time & materials basis (T&M); this means that the owner pays for parts, labor, and travel on an as-needed basis. However, several closely spaced equipment failures can severely impact a company's cash flow.
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