Capped-Call Transactions

An accounting category tracking costs for projects not yet complete or placed into service. For subcontractors, your invoiced work may sit in a client's CWIP account until project completion. This can affect payment timing and how clients prioritise approving your billings.

A contract where a subcontractor processes or treats a client's raw material using your equipment or facility, without taking ownership of it. You charge a fee for the service rather than buying and reselling the material. Common in midstream and processing work, it directly affects how you invoice and recognise revenue.

A contract clause requiring the client to pay for a minimum volume of services or materials, whether used or not. For subcontractors, it provides revenue protection when a project slows down or scopes are cut. Negotiate these clauses carefully to ensure your standby rates and mobilisation costs are covered.

A subcontractor's ability to fund operations while waiting on client payments. It covers payroll, fuel, and equipment costs between invoice and payment. Strong bridging power prevents work stoppages during slow pay cycles.

A measure of a subcontractor's core operating profitability, stripping out financing and accounting costs. It helps field service companies assess whether their contracts and crews are generating real operational value. Clients and lenders often use it to evaluate a subcontractor's financial health before awarding work.

A 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.

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