FieldNews
Subscribe

Daily oil & gas and construction news for subcontractors

Cash FlowGlossary Term

Apportionment

The division of costs, revenue, or liability between multiple parties on a shared project or contract. Subcontractors encounter this when overhead costs or insurance claims are split across several work scopes or prime contractors. Clear apportionment terms in your contract protect against unfair cost allocations.

Related Terms

Spring Breakup

Cash Flow

The seasonal period when thawing ground and flooding restrict heavy equipment access to remote job sites. For subcontractors, it typically means project delays, suspended haul routes, and reduced billable work. Plan cash flow carefully to cover the slow period.

Lump Sum

Cash Flow

A pricing model where the contractor agrees to complete a defined scope of work for a fixed total price, regardless of actual costs incurred.

Adjusted Ebitda (earnings Before Interest, Taxes, Depreciation and Amortisation)

Cash Flow

A profitability measure that strips out non-cash costs and one-time charges, showing true operational earnings. For subcontractors, it reveals how much cash your field operations actually generate. Clients and lenders use it to assess your financial health before awarding contracts or extending credit.

Full Truckload Pricing

Cash Flow

A freight rate applied when a shipment fills an entire truck, typically offering lower per-unit costs than partial loads. Subcontractors hauling equipment or materials to remote sites often negotiate FTL rates to reduce logistics costs. Consolidating loads before mobilisation helps field teams maximise savings under this pricing model.

Backcharge

Cash Flow

A charge issued by an operator or general contractor to a subcontractor for costs incurred due to defective work, delays, or failure to meet contractual obligations.

Escalation Clause

Cash Flow

A contract provision that allows your rates or pricing to increase if specific costs rise, such as fuel, labour, or materials. It protects subcontractors from absorbing unexpected cost spikes during long-term projects. Always verify trigger conditions and notice requirements before signing.

Stay sharp on field operations

Industry news and insights, delivered to your inbox.

Subscribe to FieldNews
A community project byAimsio