Build greater value into all service interactions with automated warranty tracking
As a best practice, set standard 30-day Service Warranties on all of your equipment and major repair types. Require your Service Pros to honor, at a minimum, this warranty time frame. This is done in your contracts with your vendors, which can be updated upon renewal. Be sure to communicate the terms with your Pros, if this is a change to how you’ve been doing business.
Allow automatic warranty assignments for each completed work order to alleviate the burden of updating and tracking this information manually. By adding a warranty to each repair, your Pros are held accountable for every type of service they perform, not just the large ticket requests.
If service is requested on an asset within the warranty period, set up your work order management software (CMMS) so you’ll be automatically notified.
With invoices clearly marked as “under warranty” upon submission, your Accounting team can dispute invoices submitted by Pros with anything other than a $0.00 amount.
Integration between your accounting software and work order management software (CMMS) helps to make this happen.
Track all current and past warranties associated with a specific asset, detailing who the warranty is with, the work order number associated with the warranty, and the number of days until the warranty expires.
Types of warranties
Generally speaking, there are two types of warranties to negotiate with your suppliers and Service Pros. Both should be tracked and managed in your facilities management work order software, to ensure that all applicable warranties are applied each time work is done on every asset you manage.
What it is: Guarantee from the manufacturer that protects against defects and failures for a specific period of time.
Most industrial equipment comes with a manufacturer’s warranty. During the term of the warranty, the manufacturer is liable for costs associated with fixing the equipment.
What it is: Guarantee on work performed by a third-party vendor.
For example, a Service Pro might warranty any work they do for 30 days. If an item repaired breaks again within 30 days of the original fix, the Pro will make repairs free of charge.
What’s covered under warranty?
Your facilities management work order management software should proactively alert the requestor of service if the asset is under warranty and, to which manufacturer service contact or service company the repair work should be assigned.
This ensures that each of your locations requesting service know:
- the asset is covered by a warranty
- whom the work should be assigned to
- all details associated with the previously completed work that may add value to the overall decision-making process
Will my service provider know the work is under warranty so I don’t get billed?
When you send the Work Order to your Pros, they should be reviewing the Work Order Details prior to accepting or rejecting the work.
During this process, Pros should see an alert at the top of the work order indicating that the service requested is still under warranty.
Typically, you will still receive an invoice for the work completed, but only for a $0.00 amount.
Am I paying for work under warranty?
As a third audit step, be sure to be review each invoice prior to processing payment. Your work order software should provide an Invoice Review Report, making it easy to review and electronically approve invoices.
Invoices submitted by your Pros should be clearly labeled as either “Under Warranty” or “No Warranty.”
Invoices labeled as “Under Warranty” should have a $0.00 amount associated with the invoice. If the amount is over $0.00, the invoice should be investigated to ensure that you are not being charged for work under warranty.