Annual Maintenance Contract

Basically, the AMC means the annual maintenance contract which lasts for a year. After the period the company must renew the contract for more services. The commercial firm has made the budget to cover the air conditioning repair expenses.

The technical meaning of maintenance involves functional checks, servicing, [disambiguation needed] repairing or replacing of necessary devices, equipment, machinery, building infrastructure, and supporting utilities in industrial, business, governmental, and residential installations. Over time, this has come to include multiple wordings that describe various cost-effective practices to keep equipment operational; these activities take place either before or after a failure.

Maintenance functions are often referred to as maintenance, repair and overhaul (MRO), and MRO is also used for maintenance, repair and operations. Over time, the terminology of maintenance and MRO has begun to become standardized. The United States Department of Defense uses the following definitions:

Any activity—such as tests, measurements, replacements, adjustments, and repairs—intended to retain or restore a functional unit in or to a specified state in which the unit can perform its required functions.

All action taken to retain material in a serviceable condition or to restore it to serviceability. It includes inspections, testing, servicing, classification as to serviceability, repair, rebuilding, and reclamation.

All supply and repair action taken to keep a force in condition to carry out its mission.

The routine recurring work required to keep a facility (plant, building, structure, ground facility, utility system, or other real property) in such condition that it may be continuously used, at its original or designed capacity and efficiency for its intended purpose.

Maintenance is strictly connected to the utilization stage of the product or technical system, in which the concept of maintainability must be included. In this scenario, maintainability is considered as the ability of an item, under stated conditions of use, to be retained in or restored to a state in which it can perform its required functions, using prescribed procedures and resources.