UNIT -13

CONTRACT
MAINTENANCE
■ Content:-
■ Necessity of contract maintenance
■ Advantage & disadvantage
■ Essential requirement of contract
■ Type of contract
■ Procedure or function
■ General terms & condition of contract
 Necessity of contract maintenance

1. When the cost of the job to be repaired is low than the salaries of the maintenance
staff.
2. Those jobs can be given on maintenance, whose job knowledge does not exist in the
hotel.
3. When the required spare parts are not available in the hotel.
4. If the equipment is under Guarantee period.
5. When the maintenance activities are being performed either once in a year or once in
two year.
6. Those jobs which are of very high risk of life of permanent employees.
7. In case the maintenance activity is consuming more time and frequency going under
repair in spite of rectified.
8. Transport vehicles are normally given on contract maintenance.
Advantage
1.Reduction in labour cost, in comparison to the permanent
employees of the hotel.
2. Reduction of the cost of spare parts, tools, and other materials
required to repair the equipment.
3. No need to stock supporting spare parts and equipment for
maintenance.
4. Saving in administrative time.
5. No need to recruit and train maintenance employees.
6. Contract employees need not be provided with fringe benefits like
permanent employees
disadvantage

1. Employees tend to become lazy, try to give every job on

contract.
2. Increase in the additional expenditures for the
organization.
3. Managements fail to negotiate the best price for the
services.
4. In order to carry out the work faster, quality of work gets
suffered.
Essential Requirement of Contract Maintenance (areas
where contract maintenance require):-
1. Building maintenance, like painting of the walls and etc.
2. Changing of Fire Extinguisher chemicals.
3. Testing and adjusting fire alarm.
4. Garbage and waste disposal.
5. Lift Maintenance (Both Mechanical & Electrical)
6. Banquets, parties, lighting, flower decoration etc.
7. Pest control, garbage disposal, overhead tanks cleaning.
8. Computer and server maintenance.
 Type of contract:-
1. Lump-sum Contract: In this type, the contractor has to quote for
maintenance of the equipment as a whole, such as maintenance of all
the ovens and burner in the kitchen or maintenance of all the heating
equipment in the kitchen to make the scope still broader.
2. Unit price Contract/ Piece-Rate Contract: In this type of contract, the
contractor has to quote separately for each item of work. For example, if a
contractor has to maintain set kitchen ovens, replacement/ repair of each
items such as burner valves, and gas pipelines could have different rates
for maintenance.
3. Service Contract: This type of contract is usually made for a year-
round routine, usually involving preventive and schedule maintenance of a
plant/system, and the contractor is needed to carry out these activities for
a specific period of time.
Procedure or function :-
1. Identify the Job to be given on Contract:
2. Preparation of Job Specification:
3. Sending Enquiries: Enquiries with all the specifications of jobs or work and
duration of job completion to be clearly written down.
4. Obtaining Quotations/ Offers: Enquiring of best rates and terms & conditions
are to be identified.
5. Preparation of Comparative Statement of the Offers: Putting all the contractor’s
terms and conditions including rates are brought to a common platform for
analysis, this act is called comparative statement.
6. Negotiations for Rates and Services:
7. Finalizing the Contractors and releasing of Work Order:
8. Payment to Contractors: Payment to the contractors shall be made only after
the job is completed and checked by one of the representatives of the
organization.
General terms & condition for contract
maintenance:-
1. Description of the nature of the work is to be written in detail.
2. Stipulation of time for completion of work is defined.
3. Necessary tools for carrying out the work shall be taken care by
the contractor.
4. Electricity, water and other facilities shall be rendered by the
organization.
5. Contractors employees should not indulge in any activity which is
prohibited by the hotel.
6. Transport to and fro fair shall be taken care by the contractors only.
7. All contractor employees should follow the rules and regulation and
discipline of the hotel.