To extend the life and value of equipment or the facility there is a set of plan for preventive maintenance. By doing timely inspections, repairing and cleaning the productivity of the equipment extends which then extends the investment value of that equipment. A preventive maintenance contract is one of the service contracts between the owner of the equipment and the service provider who negotiates in progress the associated cost with the maintenance cost.

1. The relative value of the investment placed for the equipment is first estimated or the facility that covers under the preventive maintenance contract is estimated. The estimate must include purchase price and measure the usefulness of the equipment.

2.  Then estimate is done on the cost of equipment replacement or the toll that is used in the maintenance plan. The estimated replacement cost must include the purchase price, lost productivity between the replacement part order and the replacement part that comes in, and also for the disposal and installation costs of the non functional equipment.

3.  The review is done on the replacement cost and the investment cost of the equipment. It the cost is low or have partial impact on the equipment budget or productivity then one must consider giving up a maintenance contract. With replacement cost low it lends to equipment replacement at failure time. If the spare parts are readily available like of computer or copier then it must be utilized in the inventory level.

4. Then the subscription and upfront cost of the maintenance plan is compared for the expected lifetime of the apparatus or equipment. These costs can be negotiated by illuminating the competing offers of the maintenance plan.