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A brief description of the Repair & Replacement Labor portion of a service agreement.

Repair & Replacement Labor

Repair and replacement labor includes the labor necessary to repair or replace failing, worn or doubtful parts or components that are included in the program description and found during regular programmed maintenance time or emergency time.

Very few service agreements include repair and replacement labor. Many contractors feel it is in the customers best interest to "pay as they go" rather than expect the contractor to forecast labor hours.

This is a more difficult set of items to include in a service agreement. They require the person pricing the agreement to have a good understanding of equipment life cycles, operational conditions, differences in the ages of equipment that can all effect the price of the service agreement. The only good way to make sure you have the right price is to have a base of information that provides the details of every condition that will effect the price. 

After five years of research, we were able to build those conditions into Service Estimator.

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