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Maintenance Contract - Bonded

By mfetick ·
Has anyone heard of requiring a "bond" in a Maintenance Agreement for a vendor to perform routine, preventative-maintenance and corrective-maintenance to computer equipment?

I ran a search on the TechRepublic website for "bond" and resulted 126 matches, but not one of them referred to anything close to my interest.

The same thing happened when I searched MSN!

I discovered that "performance bonds" are largely required in the construction business and are available for many, many other industries; but oddly, not computer servicing!

My boss wants the vendor to be bonded, but the vendor and myself do not know where to find one and what it's about.

Does anyone have any experience with this?

Has the topic of "bonds" ever been in a discussion?

Can anyone share their experience with Maintenance Agreements of this kind?

Thanks in advance!
Mike Fetick

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Maintenance Contract - Bonded

by Ann777 In reply to Maintenance Contract - Bo ...

Computer contractors can be bonded or not. Essentially it is a form of security with the company doing business for you.

http://www.mindconnection.com/interests/contractors.htm

Do a search in Yahoo or whatever search engine for:
bonded computer contractors

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Maintenance Contract - Bonded

by mfetick In reply to Maintenance Contract - Bo ...

Yes, but I need something more specific.
The links are like 100's of others that I've tried.
No joy here.

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Maintenance Contract - Bonded

by brajarath In reply to Maintenance Contract - Bo ...

The word 'CONTRACT' has got a specific meaning. Always contracts are agreed on Pen & paper. There should be no verbal communication in terms of contract.
Every compnay pay money to the maintenence vendor and in liue of that they need a good serviceor not? So it is always safer to have a maintenence agreement, what kind of spares he will have to give, in caseof any failure. What is the time frame that he should be given?? If he is not, what is the action to be taken against him??

Agreementis really a good idea when it comes in terms of IT.

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Maintenance Contract - Bonded

by mfetick In reply to Maintenance Contract - Bo ...

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Maintenance Contract - Bonded

by condover In reply to Maintenance Contract - Bo ...

I've written hundreds of contracts and have never come across it in those terms. However I was the provider. Now working for the other side I'd suggest you could ask that spares be available (bonded stores) checked, tested and managed by the serviceprovider. Most providers should agree to this if it is reasonable. However the real crux of your success will depend on the penalty clause you add to ensure compliance. The frequency of checks, etc. The penalty amount will tangibly focus the providers efforts. Without it you may only have a piece of paper and an apology.
Good Luck.

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Maintenance Contract - Bonded

by mfetick In reply to Maintenance Contract - Bo ...

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Maintenance Contract - Bonded

by mfetick In reply to Maintenance Contract - Bo ...

I have learned that a "performance bond" is used with contracted "data deliverables," e.g. software programming and also for infra-structure like laying network cabling and cable drops.

I have found an "employee theft bond" usually carries a clause that requires an arrest and a conviction for coverage. It's very reasonable:
$ 5k : $100/yr
$ 10k : $115/yr
$ 25k : $170/yr
$ 50k : $234/yr
$100k : $326/yr
And I wouldn't worry about theives carrying out over $25k of computers in one visit (during work hours).

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Maintenance Contract - Bonded

by smmurphy In reply to Maintenance Contract - Bo ...

The Chubb Group of Insurance, has a performance bond available for 'Emergng Technologies', but I haven't ever seen one for maintenance issues.
http://www.chubb.com/businesses/tig/eitc.html

Where I have seen maintence issues performance measuresis in a Service Level Agreement. If you required it, I'm sure that there would be a bond issuer willing to back an SLA if the provider was willing to pay the premium.

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Maintenance Contract - Bonded

by smmurphy In reply to Maintenance Contract - Bo ...

Rather than make you read the entire contract, I pasted in the paragraph relating to service and performance bond provisions. The link at the end will bring you to the full contract summary.

"Termination or Debarment and Distentanglement: The County may terminate the agreement if CSC is in default, in which case termination charges do not apply. The County may also terminate the agreement, in whole or in part, for its convenience with 180 days written notice to CSC. Certain termination charges may apply.

Upon termination of the agreement for any reason, CSC must accomplish a complete transition of the services to the County or its designee, without interruption of or adverse impact to the services. CSC must cooperate with the County and any new service provider to ensure a complete disentanglement. CSC must secure a performance bond in the amount of $50M to ensure CSC's obligations with respect to disentanglement. If requested, CSC must provide disentanglement services forup to 12 months after the effective date of the termination."

http://www.co.san-diego.ca.us/cnty/cntydepts/CAR/projects/itp/ContractSummary/contractsummary.html

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Maintenance Contract - Bonded

by mfetick In reply to Maintenance Contract - Bo ...

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