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.
Cost-Sharing
Related Terms
Fuel Cost Escalation Clause
Cash FlowA contract provision allowing subcontractors to adjust their billing rates when fuel prices rise beyond an agreed threshold. It protects field service companies from absorbing significant fuel cost spikes on long-term jobs. Without this clause, subcontractors carry the full financial risk of volatile diesel and equipment fuel costs.
Lien Rights
Cash FlowLegal protections allowing subcontractors to place a claim against a property or project if payment is withheld. Filing a lien can prevent an owner from selling or refinancing until your invoice is settled. Deadlines to file are strict and vary by province, so act quickly when payment stalls.
Ticket Rejection
Cash FlowWhen an operator returns a field ticket for correction before approval. Common causes include missing information, rate discrepancies, or insufficient documentation. Rejections delay payment and require rework.
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.
Backcharge
Cash FlowA 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.
Heating Oil Futures
Cash FlowContracts locking in future heating oil prices, traded on commodity markets. Subcontractors use these trends to forecast fuel-related operating costs on remote or winter job sites. Rising futures signal higher equipment heating and site fuel expenses ahead.
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