Dayrate Model

The gap between a benchmark price (like WTI crude) and the actual local price your client pays. When that gap widens unexpectedly, clients may cut field budgets mid-contract. This can delay your invoices or reduce your awarded scope.

A directive where a contractor is authorised to begin work before a formal purchase order is issued. The subcontractor agrees on a price verbally or in writing, then mobilises immediately. Common in urgent field situations, but carries payment risk if terms aren't confirmed in writing.

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.

A reduced invoice amount offered to prime contractors or clients who pay before the standard due date. Common terms like 2/10 Net 30 mean a 2% discount if paid within 10 days. Subcontractors must weigh the cash-flow benefit against the revenue they give up.

A contract clause where a general contractor delays paying subcontractors until the owner pays them first. This shifts financial risk downstream to subcontractors and field service companies. Review these clauses carefully, as they can significantly impact your cash flow on long projects.

A U.S. securities regulation allowing large private companies to raise capital without a public stock listing. For subcontractors, it signals a major client may have access to significant private funding. This can affect contract stability and payment capacity on large projects.

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