Why AMCs Lose Money
Most AMCs are priced once, at tender, and never checked again. The fixed fee comes in every month or quarter, so the contract feels profitable. Meanwhile the real cost sits in places nobody adds up: extra call-outs, travel between sites, parts that should have been chargeable and PPM visits that take longer than planned.
The fix is not a better price on the next tender. It is knowing, for each contract, what you are actually spending against what you are paid.
- Reactive call-outs that were never priced into the fee.
- Parts and consumables absorbed instead of charged.
- PPM visits that run long because of poor access or missing information.
- Scope creep, where the client treats every request as covered.
Be Clear on What Type of AMC It Is
In the UAE you will usually see two kinds. A comprehensive AMC covers labour and parts, so you carry the risk of anything failing. A non-comprehensive (labour only) AMC covers your time, and parts are charged on top.
Both can work. The problem starts when the contract wording is vague and the client assumes comprehensive while you priced labour only. Write down, in plain terms, what is in the fee and what is not, and make sure your crews and your office both know it.
- Which assets are covered, listed by location and type.
- How many PPM visits per year, and what each visit includes.
- Response times for reactive calls, and how many calls are included.
- What counts as chargeable: parts, after-hours work, damage, upgrades.
Build the PPM Schedule From the Asset List
A PPM schedule should start with an asset register: every AC unit, pump, panel and fire system you are responsible for, where it is and how often it needs servicing. Without that list, the schedule is a guess.
Group visits by building and area so one crew covers several assets in one trip. Plan the year up front, then confirm each visit a week or two ahead with the client so access is not a surprise on the day.
Track Every Visit Against the Contract
Each PPM visit and each reactive call should be logged against the contract it belongs to, with the time spent, the parts used and a short note or photo of what was done. That record does two jobs. It proves to the client that the work happened, and it tells you what the contract is costing you.
Paper sheets and WhatsApp photos make this almost impossible to add up. A job card on the technician's phone, tied to the contract and the asset, makes it automatic.
Check Each AMC Before Renewal
Two or three months before a contract renews, pull its numbers: fee received, labour hours, parts used, number of reactive calls. If the cost is close to or above the fee, you have options. Reprice it, tighten the scope, or let it go.
Contractors who do this once a year stop carrying loss-making contracts out of habit, and walk into renewals with facts instead of a feeling.