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April 2016

A CASE FOR PERFORMANCE BASED O&M CONTRACTS

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Published in the Air Conditioning and Refrigeration Journal by ISHRAE

 

Introduction

The current practice is for owners or users hire services providers for operations and maintenance contracts on plant capacity basis with a very general rule of thumb or with marginal increment of rates. While the service provider commits better service, better response time and better complaint management, the client or end user generally feels that there has been under-delivery. The service provider has records of complaint received, attended closure time to prove his performance. While the client feels that he is paying high for the given quality of service, the service provider feels that he are getting paid a pittance and is over-stretching his budgets, and all complaints are getting attended within committed time frame with a few exceptions.

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