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What is an Annual Maintenance Contract (AMC)?

An annual maintenance contract is an agreement between a company and a provider that sets expectations for the ongoing maintenance of machinery or property that the company purchases from the provider. The annual maintenance contract ensures that the service provider will repair or replace equipment or products sold to the customer either when they are not functioning or as otherwise agreed between the two so as to minimize the consequent impact on downtime or irregularities in ensuring business continuity.
Annual maintenance services can apply to buildings, landscaping, computers, machinery, technicallyenhanced furniture, and any other technology or business systems that require post-purchase service and maintenance. In specific industries, AMCs are certainly more prevalent than others. For instance: manufacturing, food service providers, healthcare, and retail have more annual maintenance needs
than, say, an office.
For example, an office building may enact an AMC with the HVAC company that built their HVAC system. The contract would detail information like which equipment was covered, how often maintenance would be done, and what the costs of maintenance would be.

The typical annual maintenance contract format includes: