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Inspection Service Contract

An inspection contract, also known in the industry as a “fly-by” contract, is purchased by the owner for a fixed annual fee and includes a fixed number of periodic inspections. Inspection activities are much less rigorous than preventive maintenance. Simple tasks such as changing a dirty filter or replacing a broken belt are performed routinely, but for the most part inspection means looking to see if anything is broken or is about to break and reporting it to the owner. The contract may or may not require that a limited number of materials (belts, grease, filters, etc.) be provided by EG&G ME, and it may or may not include an agreement regarding other service or emergency calls. In the short-term perspective, this is the least expensive type of contract. It may also be the least effective—it’s not always a moneymaker for EG&G but is viewed as a way to maintain a relationship with the customer. I it is EG&G’s “foot in the door” arrangement invented by EG&G to be called when a breakdown or emergency arises. Then we can bill on a time-and-materials basis. Low cost is the main advantage to this contract, which is most appropriate for smaller buildings with simple mechanical systems.