Have you heard the term “Customer Value Agreement” bandied about in recent months but aren’t sure what it means — or why you should care? Read on for answers.

What is a CVA?

A Cat^® Customer Value Agreement, or CVA, is an arrangement between you and your dealer focused on lowering your owning and operating costs through hassle-free maintenance, reducing downtime and choosing the best alternatives for your operation. It includes a combination of services that help you accomplish your goals while maintaining high standards for environment, health and safety.

What’s included in a CVA?

It’s up to you — CVAs can range from supporting your personnel with self-help services and parts to complete maintenance and repair agreements that capitalize on digital gains for operational efficiencies. You and your dealer are free to customize a CVA around your needs, budget and goals. At a minimum, every CVA includes:

• Genuine Cat parts, delivered when and where you need them.


• Asset data collection for diagnostics and troubleshooting


• Any combination of health service products like fluid analysis, Cat Inspect or condition monitoring to help prevent failures and downtime


• Dedicated dealer resources for maintenance planning, repairs, rebuilds, upgrades and more

What assets does a CVA cover?

You can set up a CVA for individual assets, multiple assets or an entire fleet. CVAs are available for existing and new products, manufactured by Caterpillar or not. Payment terms are flexible, too - choose from a predetermined fixed rate for parts and service or even a set hourly rate covering all maintenance, repairs, and overhauls.

Why does investing in a CVA make sense in today’s economic climate?

1. Reduce unplanned repair costs and downtime. Chances are, there’s not much wiggle room in your budget for expensive unscheduled repairs. Because CVAs focus on planned, predictive maintenance — and make it quick and easy for either you or your dealer to schedule and complete those tasks — your risk of unplanned failure goes down. Plus, your dealer’s expertise when it comes to interpreting asset data means potential problems get spotted earlier, when you can plan the best time to fix them. It all adds up to less money spent on repairs and more time spent earning a profit.


2. Rely on your dealer for manpower. Do your stretched-thin technicians often get pulled away from routine maintenance to deal with emergencies? A CVA doesn’t just help you avoid unexpected repairs; it also helps ensure you have access to dedicated dealer resources when you need them. You can set up your agreement to have your dealer handle routine maintenance so your techs can focus on other tasks, or vice versa. And unlike temporary contractors who set up shop during a boom only to shut down when business fades, your local dealer is here to stay.


3. Prepare for the next boom. Work may be slower now, but it won’t always be. A CVA is a great way to make sure your assets are in shape to work productively and efficiently when the upturn comes — and to ensure you have expert support and resources at the ready without having to add to your own headcount. With a CVA, you won’t have to waste valuable time waiting on parts or service, and you’ll have the right information and advice at your fingertips to keep your equipment running.

Want to learn more about CVAs?

Your local Cat dealer can answer any additional questions you have, explain in more detail how CVAs work and walk you through the process to get started.