What is an Oil and Grease (OG) or Examination & Lubrication Contract?
OG contracts include lubrication of moving parts and minor adjustment on a regularly scheduled basis. When additional services are needed, the mechanic reports potential problems to the property manager who then schedules all repairs to be paid by the building owner. The cost for the OG contract is relatively low but when you include repairs, the entire yearly cost is usually much higher and more complicated to budget. OG agreements also generate additional paper work, as the property manager must coordinate with the maintenance provider on all repairs. Liability exposure to claims in the event of accidents or injuries are even greater than a POG contract because the owner is responsible for having parts repaired and replaced. Customer satisfaction with this type of agreement is usually very low.
