Under the conventional model, the operator purchases or finances equipment and bears installation, operation, maintenance and replacement costs. Under a service model, the provider may supply the system included in the contract and invoice according to the agreed terms.
Benefits
- Reducing the need for upfront investment in the included assets.
- Linking part of the cost to the volume treated, where the contract provides for this.
- Making budget planning easier.
- Allocating operating and maintenance responsibilities contractually.
- Enabling faster implementation where major construction work is not required.
What needs to be checked
A service with no CAPEX does not, in itself, guarantee a lower total cost. Contract term, minimum volume, availability, maintenance, waste, responsibilities and cumulative cost must be compared. For public authorities, the contract must comply with procurement legislation and its actual legal and budgetary classification.
PayPerLiter
The proposal is to contract a treatment solution tailored to the water and available infrastructure, rather than making fluoride reduction dependent on the upfront purchase of a new plant.