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Cash FlowGlossary Term

Brent Futures

Contracts that lock in a future price for North Sea crude oil, used as a global benchmark. When Brent prices drop, operators often cut budgets and delay projects, directly reducing subcontractor workloads. Tracking Brent futures helps field service companies anticipate slowdowns and plan their crews and bids accordingly.

Related Terms

Cost Escalation

Cash Flow

An unplanned increase in project costs due to rising material prices, labour rates, or scope changes. Subcontractors without escalation clauses in their contracts absorb these overruns directly. Always negotiate cost escalation provisions before signing fixed-price agreements.

Breakeven Price

Cash Flow

The minimum rate a subcontractor must charge to cover all direct and indirect costs without losing money. It includes labour, equipment, fuel, overhead, and mobilisation expenses. Pricing below breakeven erodes working capital and threatens project viability.

CAPE (Consolidated Administration and Processing of Entries)

Cash Flow

A centralised system used by operators to consolidate and process contractor timesheets, work records, and billing entries. Subcontractors submit field data through CAPE to trigger payment and compliance verification. Accurate, timely entries are critical to avoiding payment delays.

Cost-Sharing

Cash Flow

An arrangement where costs for equipment, mobilisation, or resources are split between the contractor and client. Subcontractors should confirm cost-sharing terms in writing before mobilising. Unclear agreements often lead to disputed invoices and delayed payments.

Working Capital

Cash Flow

The difference between your current assets and current liabilities — essentially the cash available to keep operations running. For subcontractors, it covers payroll, fuel, and equipment costs while awaiting client payment. Tight working capital is a common risk when payment terms stretch 60–90 days.

Convertible Notes

Cash Flow

Short-term loans that convert into equity if not repaid by a set date. Subcontractors may encounter these when seeking growth capital to fund equipment or crew expansion. They carry risk: lenders can become part-owners of your company.

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