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.
Cash Flow Glossary Term
Backcharge
Related Terms
Net Pay
Cash FlowThe amount a subcontractor or field worker actually receives after all deductions — such as taxes, union dues, equipment charges, or mobilisation costs — have been subtracted from gross earnings. For subcontracting companies, tracking net pay against invoiced amounts is critical to maintaining healthy margins on field projects.
Net 30/Net 45/Net 60
Cash FlowPayment terms indicating when payment is due after invoice date. Net 30 means payment within 30 days. Many operators use Net 45 or Net 60, extending subcontractor cash cycles.
Price Book
Cash FlowA document listing agreed-upon rates for various services, equipment, and materials between an operator and contractor. Field tickets are validated against the price book before approval.
DSO (Days Sales Outstanding)
Cash FlowThe average number of days it takes to collect payment after a sale. For field service companies, DSO measures how long between completing work and receiving payment. Industry benchmarks range from 30-60 days.
RFQ (Request for Quote)
Cash FlowA formal document issued by prime contractors or operators asking subcontractors to submit detailed pricing and specifications for specific field services, equipment, or labour. RFQs typically include project scope, timelines, and technical requirements that subcontractors must address to compete for the contract.
Fixed-Price Contract
Cash FlowA contract where the subcontractor agrees to complete a defined scope of work for a set price regardless of actual labour, equipment, or material costs incurred — meaning cost overruns come directly out of your margin. Unlike time-and-material agreements, these contracts reward efficiency but expose field service companies to significant financial risk if scope creep or unforeseen site conditions arise.
Latest Cash Flow News
Cash Flow
Eni Cuts Annual Capex by $2B, Raises Shareholder Payouts Under 2026-30 Plan
Italian energy major Eni is reducing annual capital investment by roughly EUR 2 billion and boosting shareholder distributions under its updated five-year plan, a shift that signals tighter upstream spending through 2030.
yesterday Cash FlowAlberta Landowners Block Oil Company Operations Over Three Years of Unpaid Lease Payments
Edmonton-area landowners erected blockades against MAGA Energy after the company allegedly failed to pay land lease fees for three years, highlighting payment risks for field service contractors.
6 days ago Cash FlowTariffs Push Construction Input Prices Up 7% to Start 2026
January saw a sharp spike in nonresidential construction costs, driven by tariff-affected materials like copper, steel, and industrial controls. Here's what subcontractors need to know.
20 days ago Cash FlowStudy: Mid-Sized Field Service Companies Losing $1.8M Annually to Operational Inefficiency
New research quantifies the true cost of paper-based field operations. Revenue leakage, admin overhead, and delayed approvals combine to drain nearly 5% of revenue for a typical 75-person operation.
22 days agoRelated Guides
Cash Flow Guide
Job Costing for Field Service Companies: How to Know If You're Actually Making Money
A practical job costing guide for oilfield and construction subcontractors. Track labor, equipment, and materials per job to find profit leaks and bid smarter.
Cash Flow GuideHow to Reduce Field Ticket Rejections: A Subcontractor's Complete Guide
Learn why field ticket rejections happen, what every ticket must include, and proven steps to get oilfield invoices approved faster and protect your cash flow.
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