Whether you’re a small business or a multi-million dollar company, one thing remains the same: taking care of your facility and its maintenance needs is integral to keeping operations running smoothly.

Regular maintenance and repairs are essential for preventing costly breakdowns and avoiding potential safety hazards. Neglecting them can be risky and impact more than just your finances. It jeopardizes the efficiency of your workforce and compromises the safety of everyone under your roof.

One way to ensure that these basics are met without adding extra stress to your team is by investing in a facility maintenance contract – something worth considering for any decision-maker with their business’s success in mind. In this blog post, we’ll explain what goes into a facility maintenance contract and explore how Lee Company can help you save money and headaches with our commercial maintenance services.

What Is a Facility Maintenance Contract?

Managing maintenance tasks can be an overwhelming and time-consuming responsibility for business owners and facility managers. Every day you can expect to deal with emergency repairs, unexpected equipment failures, and more. A facility maintenance contract is one way to help you manage these tasks without worrying about the time, cost, and resources involved.

A facility maintenance contract is a formal agreement between you (the customer) and a maintenance service provider (such as Lee Company) that outlines the scope of maintenance services that will be provided and the terms of the agreement.

It serves as a proactive solution to streamline maintenance tasks and provide peace of mind, knowing that your facility is in the hands of professionals.

Under a facility maintenance contract, the service provider is responsible for conducting routine inspections, preventive maintenance, repairs, and emergency services as needed. This comprehensive approach keeps your most critical systems – including plumbing, heating, ventilation, and air conditioning (HVAC), electrical, and more – well-maintained and working as they should be so business operations run smoothly.

A facility maintenance contract typically includes details such as:

• The frequency of maintenance visits
• Response times for emergency services
• A list of covered services
• The duration of the agreement
• The cost and payment structure

Instead of forgetting the last time a system was serviced or waiting until something breaks to take action, a maintenance agreement offers an organized and systematic approach to preserving the longevity of your equipment and avoiding potential health, safety, and legal issues. So you can focus on core business activities while leaving the maintenance tasks to the experts.

The Consequences of Deferred Maintenance

When facility maintenance tasks are neglected or postponed, the repercussions can have far-reaching effects on businesses. Deferred maintenance not only jeopardizes the safety of employees and customers but also leads to increased costs and decreased productivity. Here are some of the risks associated with neglecting maintenance tasks:

Safety Hazards and Their Impact on Employees and Customers

Deferred maintenance can lead to a variety of safety hazards within your facility. From faulty electrical systems to leaking pipes and malfunctioning HVAC units, these issues pose risks to the well-being of your employees and customers.

Faulty wiring can result in electrical shocks or fires, leaking pipes can cause slips and falls, and malfunctioning HVAC units can lead to inadequate climate control, impacting comfort and air quality.

According to the Occupational Safety and Health Administration (OSHA), workplace injuries and illnesses cost US businesses an estimated $170 billion annually. Many of these incidents can be attributed to preventable maintenance-related issues.

Ensuring regular maintenance and prompt repairs mitigates the risk of accidents, preserves a safe working environment, and safeguards the health and well-being of your workforce and customers.

Increased Costs Resulting from Emergency Repairs and Replacements

Deferred maintenance often leads to unforeseen breakdowns and emergencies, requiring costly repairs or even complete equipment replacements.

The expenses associated with emergency repairs can be significantly higher than regular maintenance costs. Delaying maintenance may seem like a money-saver, but it leads to a fourfold increase in future capital renewal expenses for every dollar saved initially.

This is because reactive measures often involve after-hours service calls, expedited shipping for replacement parts, and urgent labor costs, all of which come with a premium price tag.

The longer maintenance tasks are deferred, the higher the risk of critical system failures, which result in more extensive and expensive repairs that interrupt workflow and disrupt business operations.

Decreased Productivity Due to Operational Disruptions

Operational disruptions resulting from deferred maintenance can have a direct impact on productivity. When equipment malfunctions or systems break down unexpectedly, it halts essential processes and forces employees to divert their attention from their core responsibilities. This leads to wasted time.

According to research conducted by IndustryWeek and Emerson, unplanned downtime costs US companies approximately $50 billion annually, consuming 5-20% of their productive capacity. Neglected facility maintenance issues are a primary contributor to this problem.

Employees may be unable to perform their duties, and in some cases, businesses may need to temporarily shut down operations until repairs are completed. These interruptions hinder productivity and have financial implications in terms of missed opportunities, delayed deliverables, and dissatisfied customers.

The Benefits of a Facility Maintenance Contract

No facility manager or business owner wants to deal with the stress and costs associated with deferred maintenance. The best way to prevent these issues is to proactively establish a reliable maintenance schedule.

A facility maintenance contract is the most effective solution for staying on top of regular preventive care of your facility’s systems, equipment, and components. It allows you to plan and budget accordingly while providing long-term protection for your facility.

Here are the most significant benefits of a facility maintenance contract:

Cost Savings through Proactive Maintenance and Early Issue Detection

One of the key advantages of a facility maintenance contract is the potential for significant cost savings. Businesses can avoid costly emergency repairs and replacements by investing in preventive maintenance and early issue detection.

Experts estimate 2-6% of your annual operating budget should be allocated to preventive maintenance. This upfront investment can yield substantial savings down the line.

Studies show that businesses that adopt preventive maintenance tactics can expect to save between 12-18% on associated costs.

This means businesses can save $5 in future repair costs for every dollar spent on preventive maintenance. These cost savings can be reinvested in other areas of the business, improving profitability and allowing for further maintenance or upgrade efforts.

Reduced Downtime and Improved Operational Efficiency

As mentioned above, downtime costs some industries up to 20% of their productive capacity, meaning businesses lose billions of dollars in potential profits every year.

A facility maintenance contract helps minimize unplanned downtime, a significant business concern. With a proactive maintenance approach, potential issues are identified and addressed before they escalate into major problems that require extensive repairs and extended periods of downtime. This helps you maintain productivity, meet customer demands, and maximize revenue.

Enhanced Facility Performance and Extended Equipment Lifespan

Replacing a malfunctioning air conditioner or a broken boiler can be costly. And replacing systems like these prematurely due to a lack of preventive maintenance can add up over time and cut your profits.

A facility maintenance contract helps maximize the performance and lifespan of your critical systems and components. Regular maintenance, including cleaning, lubrication, calibration, and other preventive measures, ensures that equipment operates efficiently and reliably.

It also helps identify and address potential issues before they escalate. Instead of waiting for a major breakdown to occur, you can make minor adjustments and repairs that extend the life of your equipment.

Energy Efficiency and Reduced Environmental Impact

Does your business have sustainability goals? A facility maintenance contract can help you meet them.

Preventive maintenance measures ensure that every system and component in your facility operates at peak efficiency. This minimizes energy consumption, reduces waste, and increases the overall performance of your building’s systems.

On a practical level, this means lower monthly utility bills. According to research by the Environmental Protection Agency, commercial buildings waste an average of 30% of their energy. So by investing in regular maintenance tasks like adjusting and repairing ventilation systems, you can drastically reduce your energy usage and carbon footprint.

Since utility bills can easily account for 29% or more of your total operating costs, you’ll see a significant return on investment.

Compliance with Regulations and Avoidance of Penalties

You don’t want to mess with the law, right? A facility maintenance contract keeps you in compliance with safety regulations, preventing potential fines and legal complications. But it’s more than just following regulations; it’s about protecting lives and creating a secure environment for everyone in your building.

With a facility maintenance contract, you:

• Prioritize safety
• Stay up to code
• And ensure your property is always prepared for the unexpected

From conducting thorough 90-minute emergency lighting tests for safe evacuation during power outages to adhering to plumbing codes for proper sewage disposal and hot water supply, you take proactive measures to safeguard the well-being of your employees, vendors, and visitors.

Maximizing Property Value through Facility Maintenance

When you have “skin in the game” with a building you own or are responsible for, having a facility maintenance contract becomes even more critical for its long-term value.

Proactive maintenance contributes to the following:

1. Enhanced Curb Appeal: Regular upkeep of exteriors improves the property’s attractiveness, making it more marketable when it comes time to sell or rent to new tenants.
2. Extended Structural Lifespan: Routine maintenance prevents premature deterioration, preserving the integrity of the property and avoiding costly refurbishment.
3. Compliance with Building Codes: As mentioned above, staying up-to-date with regulations avoids penalties and legal issues, safeguarding the property’s value and function.
4. Reputation and Tenant Satisfaction: Well-maintained facilities create a positive environment, leading to tenant retention and recommendations.
5. Future-Proofing and Adaptability: Regular maintenance allows for upgrades and modernizations, making the property adaptable to evolving needs. This also makes it more desirable to future buyers or tenants, enabling you to charge a premium for the space.

Examples of Facility Maintenance Services

Below are some specific services that can keep your business running like a well-oiled machine.

HVAC System Maintenance

Behind a comfortable working environment and energy efficiency is a complex network of heating, ventilation, and air conditioning systems. Professional commercial HVAC services can help maintain your building’s temperature control system so employees and customers are as comfortable as possible in all seasons.

But it’s not just about comfort. These services also help reduce energy costs and protect employees from indoor air pollutants.

And if you manage a facility with chemical compounds, fumes, or other hazardous substances, exhaust systems are crucial for controlling airflow. HVAC Maintenance services can help ensure your facility is adequately ventilated to prevent exposure and comply with safety regulations.

Plumbing System Maintenance

We tend to take plumbing for granted until something goes wrong. Regular inspections and maintenance can prevent those unexpected leaks, clogs, and water damage nightmares.

Imagine a burst pipe flooding your office or a backed-up toilet creating a mess that your customers see…

Proper commercial plumbing maintenance services save you from these headaches, ensure a clean and hygienic environment, and keep your liquids flowing smoothly.

Electrical System Maintenance

Did you know electrocution is one of the most common workplace injuries? That’s a worst-case scenario, but it’s not unheard of. And a faulty electrical system can lead to short-circuiting, damage to expensive equipment, fire hazards, and other expensive disasters.

Regular electrical maintenance keeps your lighting fixtures and wiring up-to-date and safe. It also prevents voltage fluctuations that can damage expensive equipment.

And even basic maintenance tasks like replacing old bulbs with efficient LED bulbs can help reduce your energy consumption, saving you money each and every month.

General Maintenance

Workplaces take a lot of abuse. Whether it’s your carpets, walls, or walkways — they all need regular attention to keep things looking and working like new. From repairing damaged drywall to replacing windows and cleaning dirty carpets, general maintenance keeps your business sparkling inside and out.

That clean, attractive, and functional exterior also helps create a positive image of your business that employees and customers can appreciate.

If you’ve worked in facilities management for long enough, you know that the list of maintenance services you require varies depending on your industry, location, and other factors.

Lee Company specializes in commercial maintenance services tailored to your specific needs. We offer comprehensive maintenance solutions like the ones listed above and preventative maintenance contracts to keep your facility running without a hitch.

Contact us today to learn how we can help keep your facility in top shape!