From a $10M+ Cost-Per-Hour contract to a monthly SAP invoice.
Complex, usage-based service contracts break down when quoting, execution, billing and finance each live in a different system. Here's how one contract lifecycle management platform replaces that fragmentation, portal by portal — from a real underground hard-rock mining contract.
In active discussions with a top-two global mining equipment manufacturer’s underground hard-rock division to manage $10M+ Cost-Per-Hour contracts — replacing a fragmented stack of SAP, Excel, a home-grown price builder, and a separate CRM, with billing posting directly to SAP FICO.
Four places the current process leaks margin.
Cost-Per-Hour rates are estimated in a spreadsheet without lifecycle modelling — margin erodes silently as labour, parts and call-out costs accumulate over a multi-year contract.
The commercial quote lives in a CRM. The contract execution lives in a separate maintenance management system. Neither knows what the other is doing.
Usage hours and parts consumed are pulled from the job record into Excel, calculated, and manually uploaded or hand-edited into SAP to generate each monthly invoice.
Cost and revenue are visible only in the annual finance review — by the time a contract is confirmed as a loss, there's nothing left to do about it.
What a fragmented contract lifecycle actually looks like.
What one contract record from quote to invoice looks like.
Based on active commercial discussions.
Commercial
Quote any contract type — from a simple AMC to a complex, multi-year Cost-Per-Hour agreement — on one engine.
Commercial reps choose from AMC, time-and-material, or Cost-Per-Hour (CPH) contract structures.
For CPH and other usage-based contracts, the lifecycle cost builder estimates cost across the full contract duration before a price is quoted.
The quote reflects modelled cost-per-hour or per-usage economics, not a flat estimate from a spreadsheet.
Once accepted, the commercial terms become the live contract record — no re-keying into a separate contract system.
In active discussions with a top-two global mining equipment manufacturer's underground hard-rock division to manage $10M+ Cost-Per-Hour contracts.
Frequently asked questions
A CPH contract charges the customer based on actual machine usage hours rather than a flat fee. The lifecycle cost builder estimates the true cost to service the machine over the contract's duration — using job libraries, kits and historical data — so the per-hour rate that's quoted actually covers cost and margin.
Not necessarily. It's built to sit alongside SAP FICO for finance and posting, while replacing the fragmented mix of a separate CRM, price-builder tool, maintenance management system and Excel that otherwise sit between quoting and billing.
Yes. The commercial portal quotes anything from a simple annual maintenance contract to a complex, multi-year Cost-Per-Hour agreement, on the same engine.
Machine usage, parts consumed and labour are captured directly from execution and job records, and invoiced on a recurring monthly cycle — instead of being calculated in Excel and manually uploaded or edited into SAP to generate the invoice.
Commercial teams quote contracts, contract managers execute them, job planners schedule maintenance and parts, billing agents invoice monthly, finance teams track cost and revenue, and the lifecycle builder estimates future cost — all against the same contract record instead of six disconnected tools.