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Cash FlowGlossary Term

Dayrate Model

A pricing structure where subcontractors charge a fixed daily rate for equipment, personnel, or services regardless of output. Rates are negotiated upfront and apply for each calendar or operational day on site. This model gives field crews predictable revenue but ties income directly to days worked, not project milestones.

Related Terms

Buyout

Cash Flow

A lump-sum payment made to a subcontractor to settle or terminate a contract early. It compensates for remaining work, mobilisation costs, or lost profit margins. Subcontractors should verify buyout terms are clearly written into their agreements before signing.

Differential

Cash Flow

A pay premium added to a base rate for working in hazardous, remote, or demanding conditions. Subcontractors should account for applicable differentials when pricing bids and setting crew rates.

Headline Inflation

Cash Flow

The overall rate of price increases across the economy, including fuel and materials. For subcontractors, it signals rising operating costs that may not be covered by fixed-rate contracts. Monitor it when renegotiating agreements or submitting bids.

Cost-Plus

Cash Flow

A contract where the client reimburses your actual costs and pays an additional agreed percentage or fee on top. Common in complex field projects where scope is hard to define upfront. Subcontractors must track and document all expenses carefully to get paid accurately.

Unplanned Outage

Cash Flow

A sudden, unscheduled shutdown of equipment or operations that halts field work without prior notice. For subcontractors, it often triggers standby time disputes and delayed milestone billing. Contracts should clearly define compensation terms for crew and equipment during unplanned downtime.

Mechanic's Lien

Cash Flow

A legal claim registered against a property or project when a subcontractor hasn't been paid for labour or materials. It prevents the owner from selling or refinancing until the debt is resolved. Filing deadlines are strict, so act quickly if payment is overdue.

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