Our multi-year commitment ensures that you have full coverage for your installation. Typical contracts include dedicated program management, coverage for parts in your unit, expert service support focused on safety and quality, and warranty coverage that gives you an insight into your head. The LTSA is the ideal solution to combine a large number of personalized services in a manageable package. It is tailored to the needs and budget of the customer and can be used in the same way by small, medium and large customers. It`s a value-added feature that allows you to get the maximum benefits from your investment by improving reliability and performance and optimizing the total running time of your system (and your monitored machines). Consider this scenario: An owner`s equipment suffers an unscheduled outage during the peak summer period. The owner must return the equipment to emergency service and the LTSA needs the OEM to execute the contract. But how can the owner ensure that the OEM is focused on the same objective, namely the return of equipment to the revenue-generating operation as soon as possible? Contractual guarantees relating to OEM performance under the LTSA are often carried out there. Performance guarantee provisions generally offer financial incentives (for example. B bonuses and/or damages related to liquidation) that contribute to the immediate OEM response time in the event of unforeseen failures, to ensure that scheduled (and unscheduled) maintenance failures are completed quickly and efficiently, and that the level of reliability of the devices is as high as possible.
However, the entire economics of the project, which is affected by such financial incentives, often leads to the implementation of the LTSA without these performance guarantees. As a result, owners are faced with the question of how to structure an LTSA to encourage OEMs to achieve the required level of service without having a financial impact on the project economy. The absence of these non-financial incentives as a whole is a frequent trap. LTSAs typically require the first OEM to provide maintenance services on a relatively “fixed” basis for the equipment they manufacture (. B, for example, gas turbines, steam turbines, etc.). From a commercial perspective, LTSAs can offer owners many benefits, including the predictability of relatively fixed long-term maintenance costs and contractually or incenti guaranteed OEM assistance. However, these very complex agreements can often include pitfalls for the careless owner of the device – pitfalls that can lead an owner to take excessive risks or lead to costly and tedious litigation with the OEM. Simply put, an LTSA is a multi-year contract with volume, price and conditions. The range of an LTSA can range from an agreement on the price list in which the asset owner chooses the timing and scope of a pre-defined price list to a comprehensive agreement in which the LTSA operator unravels to determine the timing and scope of the validity. Agreements have many names and differ in the nomenclature by supplier. Typically, the most common names are long-term maintenance contracts (LTMA), major maintenance program (MMP), Master Service Agreement (MSA) or partial agreements, while an agreement controlled by the LTSA provider retains the name LTSA.
This document will focus on vendor-controlled agreements or LTSA. The commercial simplicity of an LTSA contract allows the parties to eliminate repeated offers, negotiations and public procurement and move directly to the execution of the project. Increasing the amount of equipment in the ASD removes much of the need to qualify suppliers, establish supply specifications, negotiate terms, engage suppliers, manage multiple suppliers working in adjacent premises, or prioritize resources (. B for example, cranes or space poses).