Guide
How to Track Maintenance Costs
This guide shows you how to track maintenance costs by asset, work type and period so you can control spend and justify investment.
Tracking maintenance costs means recording labour, parts and other costs against work orders and assets so you can see total cost per asset, per category or per period. It supports budgeting, make-vs-buy decisions and identifying high-cost assets.
In this guide:
- What to track: labour, parts, contractors
- Linking cost to work orders and assets
- Reporting and benchmarking
- Using cost data for decisions
- Frequently asked questions
Table of contents
What to track
- Labour: hours and cost per work order or per asset (internal and contractor).
- Parts and materials: what was used, quantity and cost.
- Contractors: cost per job or per contract if outsourced.
Linking cost to work orders and assets
- Every work order should allow labour and parts to be recorded.
- Work orders linked to assets give you cost per asset over time.
- Use categories or work types so you can split cost by type (e.g. PM vs corrective).
Reporting and benchmarking
- Total maintenance cost per period (month, quarter, year).
- Cost per asset or per asset class for high-value equipment.
- Cost as a percentage of asset replacement value (e.g. 2–4% is often cited for facilities).
Using cost data for decisions
- ('id', 'decisions')
- ('heading', 'Using cost data for decisions')
- ('paragraph', 'Use cost trends to justify PM (lower long-term cost), identify assets that cost too much to maintain (repair vs replace), and control contractor and parts spend. Share simplified reports with management for budgeting and capital planning.')
Practical steps
- Define how labour and parts will be recorded (per work order, per asset).
- Train technicians and planners to capture time and parts consistently.
- Run regular reports: total cost, cost by asset, cost by type.
- Compare to previous periods and targets; investigate outliers.
- Use cost data in asset and budget reviews.
Who should read this
Maintenance managers, finance or operations staff who need to track and report maintenance spend.
Frequently asked questions
Do we need a CMMS to track maintenance costs?
You can track costs in spreadsheets if work orders and parts are logged there. A CMMS automates the link between work orders, assets and cost, and makes reporting easier as volume grows.
What is a typical maintenance cost as a percentage of replacement value?
Rules of thumb vary by industry. For facilities, 2–4% of replacement value per year is often cited. The important thing is to track your own baseline and trend over time.
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