The "Unlimited" Support Myth: Where Maintenance Ends and Billable Projects Begin
You signed an "All-Inclusive" contract to stabilize your IT spend. So why did you just get an invoice for $5,000 to set up a new server? The answer lies in the fine print definition of "Maintenance."
The most common source of friction between Managed Service Providers (MSPs) and their clients is the definition of "Support." To a client, support means "anything IT-related that needs doing." To an MSP, support strictly means "keeping the existing environment running."
This misalignment creates a predictable budget shock. You assume your flat monthly fee covers everything, but your provider assumes it only covers restoration of service. Anything that involves improvement or addition is classified as a "Project" and billed separately at an hourly rate (often $150-$250/hr).
The Golden Rule of Scope
Maintenance (Included): Fixing something that broke. (e.g., "My email isn't syncing.")
Project (Billable): Adding something new or changing how it works. (e.g., "We need a new email signature system.")
Visualizing the Cost Boundary
To help you audit your own expectations (and your contract), we have visualized the standard industry dividing line between included support and billable projects.
As the chart illustrates, the distinction is often subtle. Resetting a password is maintenance (restoring access). Setting up a new user is often a project (adding access), though many modern contracts now include "Moves, Adds, and Changes" (MACD) for users. However, infrastructure changes like server upgrades or cloud migrations are almost universally excluded.
The "MACD" Trap
The acronym MACD stands for "Moves, Adds, Changes, and Deletes." In older or lower-cost MSP contracts, MACD is entirely billable.
Example: You hire a new salesperson.
- Included Support: The MSP creates the user account because it takes 5 minutes.
- Billable MACD: The MSP configures the laptop, installs specific sales software, maps network drives, and sets up the phone extension. This takes 2 hours. Invoice: $350.
If you are a high-growth company hiring 5 people a month, a contract that excludes MACD can cost you an extra $20,000 per year in "hidden" fees.
How to Budget for the "Un-Included"
Since "Unlimited" never truly means unlimited, you must budget for the variable costs. We recommend allocating an additional 15-20% of your annual managed services contract value for project work.
1. Define "User Onboarding" Explicitly
Don't just ask if "support" is included. Ask: "Is workstation setup for new hires included?" Many MSPs charge a flat "Setup Fee" (e.g., $250) per new computer.
2. Check the "Project Labor Rate"
Your contract should specify a discounted hourly rate for project work. If you are paying street rates ($200+), you are losing one of the key benefits of a managed relationship.
3. Ask for a "Project Roadmap"
A good vCIO will tell you in January that you need a server upgrade in July, allowing you to budget for the project fee. A bad one will surprise you with the quote two weeks before the server crashes.
The goal of a Managed Services Agreement is to align incentives: the MSP profits when your systems work, not when they break. But "Projects" are the exception to this rule. By understanding where the line is drawn, you can turn a "hidden fee" into a planned investment.
This article is part of our series on IT Budgeting Strategy, helping you forecast the true cost of technology ownership.