IT Annual Maintenance Contract (AMC) Terms and Conditions

An IT Annual Maintenance Cost Agreement (AMC) is a contract between a service provider and a client that outlines the terms and conditions for the maintenance and support of IT infrastructure, such as hardware, software, and network systems.

1] Agreement Overview:

This Annual Maintenance Contract (AMC) is made between [Client Name] (hereafter referred to as "Client") and [Service Provider Name] (hereafter referred to as "Service Provider"), and it governs the maintenance and support services to be provided by the Service Provider for the Client’s IT infrastructure.

2] Scope of Services:

• The Service Provider will maintain, troubleshoot, and repair IT equipment, including but not limited to:

  • Desktops, laptops, servers, and workstations

  • Network hardware (routers, switches, firewalls, etc.)

  • Software and operating system support

  • Backup solutions

• Preventive maintenance, including periodic checks and updates, will be performed as part of the service.

• Support will be provided for hardware failures, system crashes, virus or malware infections, and software issues that are part of the supported systems.

• The following services are excluded unless specifically agreed upon:

  • Replacement of hardware parts or components due to manufacturer defects or wear and tear

  • Support for third-party software not covered under this contract

  • Installation or upgrades of new software or hardware outside the scope of the initial agreement

  • Any work arising from client negligence, misuse, or unauthorized modification of systems

3] Term of Agreement:

This agreement will be valid for a period of [1 year], starting from the effective date, and will automatically renew for subsequent periods unless terminated by either party with [30 days] written notice before the expiration date

4] Maintenance & Support Services:

• Preventive Maintenance:

  • The Service Provider will perform periodic checks and updates, including system diagnostics, and software updates.

• On-Site Support:

  • The Service Provider will provide on-site support in the event of hardware or network failure, or any issue that cannot be resolved remotely. On-site visits will be scheduled as needed and are included in the contract.

• Remote Support:

  • Remote support will be provided for troubleshooting software-related issues, system performance, and network configurations via phone, email, or remote desktop tools during regular business hours.

• Emergency Support:

  • Emergency support will be available [24/7 or business hours] for critical issues, with response times as specified in Section 5.

5] Service Levels & Response Time:

• Response Time:

  • For high-priority issues (system downtime, critical service failures), the Service Provider will respond within 3 hours.

  • For medium-priority issues (non-critical issues causing reduced performance), the response time will be within 3 hours.

  • For low-priority issues (requests for general advice or minor troubleshooting), the response time will be within 3 hours or next business day.

• Resolution Time:

  • The resolution time will depend on the nature and complexity of the issue. The Service Provider will make every effort to resolve issues as quickly as possible.

6] Exclusions:

• This agreement does not cover:

  • Damages caused by external factors such as power surges, natural disasters, or third-party interference.

  • Loss of data or corruption due to software failure, hardware failure, or user errors.

  • Installation or modification of software or hardware outside the scope of the original contract.

  • Services for systems not part of the agreed-upon list of supported devices.

7] Fees and Payment Terms:

• The total cost for this Annual Maintenance Contract is [Amount], payable in [monthly/quarterly/annual] instalments of [Amount].

• Payments are due within fifteen days from the date of the invoice. Late payments will incur a Ten percentage late fee after fifteen days.

• Additional charges may apply for services outside the scope of the agreement, such as the installation of new hardware or software, or emergency services requested outside of regular working hours.

• Any additional charges will be agreed upon in writing before the service is provided.

8] Termination:

• Either party may terminate this agreement with written notice, with at least [30 days] notice prior to the desired termination date.

• If the Client terminates the contract before the end of the contract period, any paid fees for the remaining period will not be refunded.

• The Service Provider may terminate the contract if the Client breaches any of the terms outlined in this agreement, including failure to make timely payments or cooperation.

9] Client Obligations:

• The Client agrees to provide the Service Provider with timely access to all systems and devices covered under this contract.

• The Client must notify the Service Provider promptly of any issues with the systems or equipment.

• The Client must ensure that all hardware and software are operated according to manufacturer guidelines to avoid unnecessary wear or damage.

• The Client must provide adequate working conditions for the Service Provider’s team when performing on-site services.

10] Data Security & Confidentiality:

• The Service Provider will adhere to all necessary precautions to ensure the confidentiality of the Client’s data during maintenance and support.

• The Service Provider will not disclose any data to third parties without the Client's prior consent, unless required by law.

11] Limitation of Liability:

• The Service Provider's liability under this agreement is limited to the total value of the services provided under the AMC and does not extend to indirect, incidental, or consequential damages, including but not limited to loss of data, business interruption, or lost profits.

• The Client is responsible for backing up all critical data regularly to mitigate risks of data loss during maintenance services.

12] Dispute Resolution:

• Any disputes or differences arising out of this agreement will be settled amicably between both parties. If a resolution cannot be reached, the dispute will be referred to arbitration in accordance with the laws of India.

13] Force Majeure:

• Neither party will be liable for any delay or failure to perform due to circumstances beyond their reasonable control, including but not limited to acts of God, natural disasters, or government action.