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Operation & Maintenance Agreements (O&M Agreements) are project finance documents that establish a contractual relationship between the project company and a professional management company to operate and maintain the project.
In your maintenance agreement, you will need to include:A section that defines both the provider and the client including their full legal names and any terms that need to be defined in the contract.A list of the services that will be performed in detail.The compensation for the agreed upon services.More items...
A maintenance agreement outlines the steps one party will undertake to insure the upkeep, repair, serviceability of another party's property. Maintenance contracts are commonly used by companies that take care of vehicle fleets, industrial equipment, office and apartment buildings, computer networks, etc.
Annual Maintenance Contracts can cover just about anything that your business owns and uses as long as it can be maintained. It's simply an agreement between your company and a maintenance services provider that they will provide regular maintenance to your company under the terms of the contract.
The Operating and Maintenance Agreement (Agreement) supporting an infrastructure project has a significant impact on the projects' long-term success. Accordingly, it is a key document from both the point of view of the owner and the lenders in reviewing the bankability of a project-financed project.