Enhancement work

Definition

One-time project work sold on top of a maintenance contract, at a better margin than the contract.

Why It Matters

Enhancement revenue is where the margin lives, and it does not recur, so a buyer separates the sticky maintenance base from the lumpy upside before putting a multiple on anything. Ask who sells it: if the owner personally walks properties and proposes the work, that revenue is leaving with them unless somebody is trained to do it. A maintenance base is the asset; enhancement is what a good operator earns on top of it.