> ## Documentation Index
> Fetch the complete documentation index at: https://docs.planeconnection.com/llms.txt
> Use this file to discover all available pages before exploring further.

# How to Manage FBO Contracts

> Create and manage contracts for hangar leases, tiedown agreements, fuel discounts, and service agreements with billing, renewals, and rate tiers.

This guide helps you create and manage FBO contracts -- hangar leases, tiedown agreements, fuel discount programs, and service packages -- including billing terms, renewals, and lifecycle management.

<Info>
  **Who should read this:** FBO managers, accounting staff, and customer relationship coordinators responsible for negotiating, creating, and maintaining long-term customer agreements.

  **Prerequisites:** At least one customer account should exist. See [Handle FBO Billing](/en/how-to/fbo/handle-fbo-billing) for customer account setup.
</Info>

<Info>
  The FBO module must be enabled for your workspace. Contact your workspace administrator if you do
  not see the FBO section in the sidebar.
</Info>

<Tip>
  The contracts list page displays a **Total Monthly Value** summary at the top, showing the
  combined monthly revenue from all active contracts. Use this figure to forecast recurring revenue
  and identify when renewals are approaching.
</Tip>

## Create a New Contract

<Steps>
  ### Step 1: Open the contract form

  Navigate to **FBO > Contracts** and click the **New Contract** button. You can also reach this from the contracts list page.

  ### Step 2: Enter the customer name

  Type the customer name or organization in the **Customer Name** field. This should match an existing customer account for accurate billing linkage.

  ### Step 3: Set the contract dates

  Enter the **Start Date** and **End Date** to define the contract term. Common terms include:

  * **Monthly:** 30-day rolling agreements for transient tiedowns
  * **Annual:** 12-month agreements for based tenants (e.g., "2026-04-01" to "2027-03-31")
  * **Multi-year:** 24- or 36-month leases for corporate hangar tenants

  ### Step 4: Set the monthly rate

  Enter the **Monthly Value** in USD. This is the recurring amount billed to the customer each billing cycle. For example, a T-Hangar lease at $1,200/month or a corporate hangar at $8,500/month.

  ### Step 5: Choose the billing frequency

  Select the **Billing Frequency** that determines how often invoices are generated:

  * **Monthly** -- invoice generated on the 1st of each month
  * **Quarterly** -- invoice generated every 3 months
  * **Semi-Annual** -- invoice generated every 6 months
  * **Annual** -- single invoice at the start of the contract year

  ### Step 6: Configure auto-renewal

  Enable the **Auto-Renew** toggle if the contract should automatically renew at the same terms when the end date is reached. When enabled, the contract remains in Active status past its end date until explicitly cancelled.

  ### Step 7: Add terms and conditions (optional)

  Enter contract **Terms** -- standard legal language covering liability, insurance requirements, access hours, and termination clauses.

  ### Step 8: Add special conditions (optional)

  Enter any **Special Conditions** specific to this agreement, such as "Customer receives 10 complimentary GPU hours per month" or "First month prorated at 50%."

  ### Step 9: Add notes (optional)

  Include internal **Notes** for staff reference, such as negotiation history or special handling instructions.

  ### Step 10: Save the contract

  Click **Save**. The contract is created in **Draft** status with an auto-generated contract number. You are redirected to the contracts list.
</Steps>

## Activate a Contract

<Steps>
  ### Step 1: Open the contract

  From the contracts list, click the contract row to open its detail view.

  ### Step 2: Change the status

  Update the status from **Draft** to **Active**. This signals that both parties have signed and the agreement is in effect.
</Steps>

<Note>
  Activate a contract only after both parties have agreed to the terms. Once active, billing begins
  according to the configured frequency and invoices are generated automatically.
</Note>

### Handle Contract Expiration

If the contract has auto-renew enabled, it remains Active past its end date. If auto-renew is disabled, it transitions to Expired and billing stops. If you want to renew an expired contract, reach out to the customer and create a new agreement.

### Cancel a Contract

To cancel an active contract, open the contract detail and update its status to **Cancelled**. Enter a note explaining the reason for cancellation.

<Warning>
  Cancelling a contract stops all future billing immediately. Any unbilled periods between the last
  invoice and the cancellation date should be handled with a final prorated invoice. See [Handle FBO
  Billing](/en/how-to/fbo/handle-fbo-billing) for invoice creation.
</Warning>

## Track Contract Performance

If you want to review your contract portfolio, use the status tabs on the contracts list to filter by Active, Draft, Expired, or Cancelled. The **Total Monthly Value** above the table sums the monthly rates for all contracts in the current view.

<Note>
  For contract status definitions and lifecycle details, see [FBO
  Statuses](/en/reference/fbo-statuses).
</Note>

## Related

<CardGroup cols={2}>
  <Card title="Handle FBO Billing" href="/how-to/fbo/handle-fbo-billing">
    Create invoices, configure rate codes, and process payments related to contracts.
  </Card>

  <Card title="FBO Statuses" href="/reference/fbo-statuses">
    Contract statuses, invoice statuses, and billing lifecycle states.
  </Card>

  <Card title="Manage FBO Units" href="/how-to/fbo/manage-units">
    Configure the hangars and tiedowns referenced in lease contracts.
  </Card>

  <Card title="Manage FBO Customer Groups" href="/how-to/fbo/manage-customer-groups">
    Organize contract customers into groups for volume discounts and group billing.
  </Card>
</CardGroup>