What is an AMC Contract? Everything Pakistani Hospitals Need to Know

An Annual Maintenance Contract (AMC) is an agreement between a hospital and a biomedical engineer or service company to provide regular maintenance and repair services for medical equipment over a fixed period — usually one year — for a fixed annual fee.

What Does an AMC Cover?

A standard AMC typically includes:

• Scheduled preventive maintenance visits (usually quarterly)


• Emergency repair calls with a guaranteed response time


• Labour costs for all repairs


• Minor spare parts (consumables)

Most AMCs exclude major spare parts like X-ray tubes, detectors, or circuit boards. Always read the exclusion clause carefully.

Types of AMC

Comprehensive AMC: Covers everything including spare parts. More expensive but provides complete peace of mind. Recommended for critical equipment like ventilators and CT scanners.

Non-Comprehensive AMC: Covers labour and preventive maintenance only. Spare parts billed separately. Cheaper upfront but unpredictable costs.

How Much Does an AMC Cost in Pakistan?

AMC pricing in Pakistan typically ranges from 8% to 15% of the equipment's current market value per year. For example:

• Ultrasound machine worth PKR 3 million: AMC PKR 240,000 – 450,000/year


• CT scanner worth PKR 25 million: AMC PKR 2 – 3.75 million/year


• Patient monitor worth PKR 500,000: AMC PKR 40,000 – 75,000/year

Key Terms to Negotiate

• Response time: Insist on a maximum 4-hour response time for critical equipment


• Uptime guarantee: Some contracts guarantee 95%+ uptime or provide compensation


• Spare parts coverage: Clearly define which parts are included and which are excluded


• Number of visits: Minimum 4 preventive maintenance visits per year


• Penalty clause: Engineer pays a penalty if they miss response time commitments

Red Flags in AMC Agreements

• No response time commitment


• Exclusion of all spare parts


• No service report requirement


• No uptime guarantee


• Engineer based in another city with no local backup