Contingent Payment

A breakdown of costs on a field ticket or invoice, separating charges into labor hours, equipment usage, and materials consumed.

An added cost built into project contracts to account for instability in regions where work is performed. For subcontractors, it affects bid pricing, insurance rates, and mobilisation costs. Clients in high-risk areas may pay elevated day rates to secure reliable field crews.

A measure of how long a company takes to pay its invoices after receiving them. For subcontractors, a high DPO from your client means slower payment and tighter cash flow. Tracking client DPO helps you anticipate payment delays and manage operating costs.

The direct costs subcontractors pay to deliver field work, including labour, materials, fuel, and equipment. These costs fluctuate with market conditions, directly squeezing margins if contracts aren't priced accordingly. Tracking them closely helps subcontractors identify when to renegotiate rates or escalation clauses.

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.

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

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