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Is your FM maintenance contract as profitable as you think?

Model how reactive callouts, engineer costs, planned maintenance and contract pricing affect your margin.

A first result in two minutes
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Full report by email, if you want it

Select a contract model

A fixed-price contract behaves very differently from one where reactive work is billed separately.

Cost-plus / management feeComing soonCosts passed through to the client with an agreed fee or percentage on top.

Enter your baseline

Annual figures. We've preloaded an example contract so you can start exploring straight away.

Contract

Annual contract fee£Contract lengthyearsUsed for whole-of-term totals in your report

Planned maintenance

PPM visits per yearOn-site engineer hourshrsProductive hours on site, excluding travelSubcontractor costs£

Reactive maintenance

Expected callouts per yearAverage cost per callout£Labour, materials and attendance

Labour and overheads

Fully loaded engineer cost£/ paid hrIncluding employment on-costsAllocated overheads and admin£

Targets

Target margin%Minimum acceptable margin%

Scenario explorer · Fixed-priceWhat happens to your contract margin?

Contract revenue: £200,000
Total costs: £168,503
Scenario profit: £31,497
Scenario margin: 15.7%

−6.7 pts vs baseline 22.4%Floor 15.0% · Target 20.0%

Additional included reactive callouts+20

−50+150

Engineer labour cost increase+5%

−5%+20%

Additional hours spent (%)+5%

0%+30%

Subcontractor cost increase0%

0%+25%

Labour utilisation change0 pts → 75%

−20 pts+15 pts

Contract price change0%

−10%+15%

Email me this report

Understand what drives your margin

Everything below updates as you change the baseline or move a slider. The same analysis goes into your emailed report.

Callout headroom+4 calloutsThis contract can absorb 4 more included reactive callouts before the margin drops below 15.0%, at an all-in cost of £309 per callout.

Price to hit your target margin+5.3%The annual fee would need to rise by £10,628 to £210,628 to restore a 20.0% margin under this scenario.

Cost per productive hour£44.80 / hrEngineers cost £33.60 per paid hour, but at 75% utilisation each productive hour costs £44.80. A 10-point gain would release about 168 productive hours a year — roughly 67 reactive callouts without extra headcount.

Scenario comparison

Annual margin under four sets of assumptions.

Optimistic£51,537 · 25.8%

10% fewer callouts, utilisation up 5 points and PPM delivered to plan, with 2% labour inflation

Expected£44,896 · 22.4%

Your baseline forecast with no changes

Stress£14,149 · 7.1%

25% more callouts, 8% labour inflation, 10% PPM overrun, 5% supplier increase and utilisation down 5 points

Your scenario£31,497 · 15.7%

The slider settings in the scenario explorer

Margin sensitivity

Change in annual profit if each driver moves 10% against you, from your current scenario.

Engineer labour cost

−£9,012

Labour utilisation (−10%)

−£6,272

Reactive callout volume

−£5,725

PPM delivery hours

−£5,645

Subcontractor costs

−£3,000

Overheads

−£2,000

Travel expenses

−£700

Observations worth reviewing

Drawn from your assumptions, not industry averages.

Your margin is most sensitive to engineer labour cost. A 10% move against you would reduce projected profit by £9,012.

Margin headroom is thin: the contract can absorb only 4 more included callouts — 3% of the forecast volume — before the margin drops below 15.0%.

This scenario sits 4.3 points below your 20.0% target. The annual fee would need to rise by £10,628 to £210,628 to restore a 20.0% margin under this scenario.

Biggest margin improvement opportunities

The operational changes with the greatest modelled impact on this contract.

1Improve schedulingUtilisation up 10 points+£6,641+3.3 pts

2Annual price reviewContract fee up 3%+£6,000+2.5 pts

3Deliver PPM to planRemove the PPM effort overrun+£2,688+1.3 pts

This is an illustrative model based on the assumptions you enter. Labour cost is allocated rather than additional payroll spend, travel time is treated as part of utilisation so it is never counted twice, and labour inflation is assumed to make up 60% of the cost of a reactive callout. Repeat visits are costed at 60% of an original callout. It is not financial advice.

Take it into your next pricing meeting

We’ll email you a six-page PDF built from the numbers on this page — the kind of document an MD can take into a contract review.

CLEVERLY · CONTRACT PERFORMANCE TOOLSFM Contract Profitability ReviewFixed-price maintenance contract · 14 October 2026

Expected revenue£200kper year

Expected margin22.4%On target

Stress margin7.1%Below floor

Your scenario15.7%−6.7 pts vs expected

Contract margin by scenario

Optimistic

25.8%

Expected

22.4%

Stress

7.1%

Your scenario

15.7%

Key consideration: Engineer labour cost is the biggest single driver of margin on this contract — a 10% adverse move costs £9,012 a year.

Internal review · all assumptions shownPage 1 of 6

1Executive summary and key observations
2Revenue and cost breakdown
3Scenario comparison
4Margin sensitivity and break-even
5Key assumptions and risks
6Improvement opportunities and next steps

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