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Cash FlowGlossary Term

Core Inflation

A measure of price increases that excludes volatile food and energy costs. For subcontractors, it reflects sustained rises in labour, materials, and equipment costs. Use it to justify rate adjustments in long-term service agreements.

Related Terms

Lease Bid

Cash Flow

A formal pricing submission to secure a contract for equipment, vehicles, or workspace on a lease basis. Subcontractors use lease bids to compete for longer-term site access or equipment rental agreements. Winning a lease bid typically locks in your daily or monthly rate for the contract duration.

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.

ITC (Investment Tax Credit)

Cash Flow

A federal tax incentive that reduces the taxes a subcontractor owes based on eligible capital investments, such as purchasing equipment or machinery. Field service companies can apply ITCs to offset costs on qualifying assets used in operations. This can improve cash flow by lowering overall tax liability at year-end.

Joint Venture Dispute

Cash Flow

A conflict between JV (Joint Venture) partners over cost-sharing, scope, or payments that can delay approvals and freeze subcontractor invoices. When JV partners disagree, field service companies often face work stoppages or withheld purchase orders. Always clarify which JV partner holds contracting authority before mobilising.

Project-Level Debt

Cash Flow

Financing borrowed against a specific project's revenue, not the owner's overall assets. Subcontractors should know this because payment depends on that project performing financially. If the project underperforms, your invoices may be delayed or disputed.

Capacity Charges

Cash Flow

Fees paid to reserve a subcontractor's workforce or equipment availability, regardless of actual utilisation. Clients use these to secure priority access during peak demand periods. For subcontractors, they provide predictable revenue even during standby phases.

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