Asset Management, CMMS, Communication, Maintenance, Parts & Inventory Management

Vendor and Contractor Management in Maintenance Operations

December 31, 2025

Introduction

Few organizations can perform all maintenance work internally. Most companies rely on a mix of internal teams and external vendors and contractors. Managing these relationships effectively is critical to the success of a maintenance program.

When to Use External Contractors?

  • Work requiring specializations not available internally (such as elevator maintenance or specialized HVAC systems)
  • Large projects exceeding internal team capacity
  • Seasonal or non-recurring work
  • Maintenance of equipment under manufacturer warranty
  • Work requiring special certifications or licenses

Types of Contracts with Contractors

Comprehensive Service Contracts

The contractor handles all maintenance work for a specific system in exchange for fixed monthly fees. Suitable for critical systems requiring rapid response.

Preventive Maintenance Contracts

The contractor makes scheduled periodic visits to perform preventive maintenance. Additional repairs may be included or billed separately.

Call-Out Contracts (On-Demand)

You call the contractor only when needed and pay per visit. Lower cost for non-critical equipment or rarely failing equipment.

Contractor Selection Criteria

  • Experience and specialization in the required equipment type
  • Reputation and references from previous clients
  • Professional certifications and licenses
  • Geographic coverage and response speed
  • Insurance and warranties provided
  • Competitive pricing (cheapest isn’t always best)
  • Ability to integrate with your systems (such as CMMS)

Managing Vendor Relationships

Clear Contracting

Clearly define: scope of work, response times, service level agreements (SLA), pricing, payment terms, and penalties.

Regular Communication

Hold periodic meetings to review performance and discuss improvements.

Performance Evaluation

Track metrics such as: response time, work quality, schedule adherence, and user satisfaction.

Documentation

Maintain complete records of all work orders, invoices, and reports.

The Role of CMMS in Contractor Management

A good CMMS system helps you:

  • Create and track work orders for contractors
  • Track contractor costs per asset
  • Monitor response and completion times
  • Manage service contracts and renewals
  • Evaluate contractor performance with data

Contractor Management Challenges

  • Ensuring work quality without direct supervision
  • Coordinating between multiple contractors
  • Managing costs and budget
  • Ensuring contractors comply with safety standards
  • Maintaining institutional knowledge (avoiding complete external dependence)

Conclusion

Good contractors and vendors are indispensable partners in the success of a maintenance program. Invest in building long-term relationships with them, and manage them effectively through clear contracts and continuous monitoring.

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