Posted 1st May 2025 by Rob Whalley

Managing Contracts Through a CMMS and CAFM: A Complete Lifecycle Approach

Contract management in facilities management is a complex, multi-phase process involving specification, procurement, delivery, performance tracking, and profitability analysis. For organisations managing multiple clients, assets, and service lines, manual processes or disjointed systems quickly become a liability. That’s where an integrated CMMS (Computerised Maintenance Management System) and CAFM (Computer-Aided Facilities Management) platform comes into play.

Modern CMMS and CAFM solutions enable end-to-end contract lifecycle management — from initial enquiry and costing to purchase orders, performance monitoring, and profit analysis. In this blog, we’ll explore how these systems streamline contract lead management, automate procurement, and deliver visibility into financial performance.

1. Contract Lead Management: From Enquiry to Specification

The contract journey typically begins with a client enquiry. CMMS/CAFM platforms with integrated CRM functionality allow service providers to capture enquiries, assess requirements, and begin shaping the opportunity.

Specification of Works
Using templates or custom fields, users can define the Scope of Works (SoW) for each contract — detailing tasks, asset groups, SLAs, frequencies, and compliance requirements. A robust system enables attaching documents, versioning specs, and collaborating with stakeholders during the specification stage.

Costing Calculations
Quotes are created using built-in costing tools that draw on price books, schedules of rates, and historical data. Labour rates, material costs, subcontractor estimates, and asset lifecycle predictions can all be factored in. This ensures quotes are not only accurate but also profitable.

2. Contract Creation and Operational Management

Once a contract is awarded, CAFM and CMMS systems shift into delivery mode.

Contract Management
Contracts are created within the system, linking all components: specifications, sites, assets, labour teams, SLAs, compliance documentation, and contacts. This digital contract acts as the central reference point for ongoing service delivery and reporting.

Scheduling & Resource Allocation
Tasks and PPM (Planned Preventative Maintenance) schedules are automatically generated based on the contract terms. These are dispatched to engineers or subcontractors through integrated work order systems, mobile apps, and calendars.

3. Procurement: Goods, Services, and Labour

Contracts often require purchasing materials or subcontracted services. A CMMS/CAFM platform handles procurement from request to reconciliation.

Purchase Orders & Expenses
Raise and track purchase orders (POs) directly from the job or contract record. The system records supplier invoices, deliveries, and cost centres — ensuring transparency and budget compliance. Expenses, including mileage, materials, and sundry items, can be logged against the appropriate contract or work order.

Labour Costs
Engineer time is tracked via job completion reports, time sheets, or integrated mobile apps. The system can apply standard or contract-specific labour rates, automatically calculating cost-to-date and forecasting remaining budget requirements.

4. Financial Intelligence: From Schedule of Rates to Profitability

Schedule of Rates (SoR)
Where contracts are based on predefined rates for services, CAFM systems reference these during work order generation and invoicing. Updates to SoR can be versioned, applied retroactively, or updated in bulk across multiple contracts.

Scheduled Invoicing
Recurring invoices, milestone payments, or ad-hoc charges can all be generated automatically from the contract. With built-in integration to accounting platforms or in-system billing modules, invoice generation becomes a seamless process that reflects actual works delivered.

Performance Monitoring
KPIs, SLAs, compliance audits, and asset performance can all be tracked and reported. Dashboards and alerts flag any underperformance, allowing for quick remedial action. Evidence of service delivery is available at the click of a button, making client reporting straightforward.

Profit and Loss (P&L) Tracking
All revenue, costs, and expenses linked to a contract feed into real-time profit and loss reporting. Facilities teams can quickly assess margin erosion, overspend on materials or labour, or opportunities for upselling. This turns contract management from a reactive function into a strategic lever.

Final Thoughts

Whether you're managing long-term maintenance contracts, compliance work, or reactive service agreements, a well-implemented CMMS/CAFM solution transforms contract management from a manual headache into a data-driven, profitable process.

From lead to lifecycle, contract management is no longer just about delivering services — it's about delivering value, transparency, and performance. And with the right technology in place, facilities teams are empowered to do just that.

For more information on how Tabs CMMS and CAFM systems can support your contract management, please contact sales@tabsfm.com