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.
Dayrate Model
Related Terms
Buyout
Cash FlowA 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 FlowA 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 FlowThe 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 FlowA 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 FlowA 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 FlowA 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.
Latest Cash Flow News
Mammoth Energy Still Owed $20M for 2017 Puerto Rico Storm Work
Nearly nine years after Hurricane Maria, Mammoth Energy subsidiary Cobra Acquisitions is still collecting on Puerto Rico power restoration invoices, with $20 million outstanding as of June 2026, OK Energy Today reports.
6 days agoCash FlowGordie Howe Bridge Opens to Pedestrians as Vehicle Traffic Begins
The Gordie Howe International Bridge between Windsor and Detroit opened to pedestrians and cyclists this week, following last week's opening to motorists, according to a Canadian Press report via Daily Commercial News.
17 days agoCash FlowTalos Energy Takes 50% Stake in Repsol's Deepwater Mexico Block
Talos Energy will pay up to $50 million to acquire a 50% working interest in Repsol's Block 29 offshore Mexico, targeting FID in 2027 on a discovery holding over 200 MMboe.
25 days agoCash FlowGordie Howe Bridge Set to Open Monday After Canada-Only Ceremony
Windsor held a Canada-only ceremony for the Gordie Howe International Bridge ahead of Monday's opening, after Ottawa scrapped a joint U.S. event amid tariff tensions.
1 month agoRelated Guides
What Happens to Subcontractor Billing When a Project Stalls, Goes Over Budget, or Never Gets Commissioned
You did the work. The project was cancelled, shelved, or never activated. Here is what subcontractors need to know about billing rights, legal remedies, and how to get paid when no one wants to discuss the invoice.
Cash Flow GuidePost-Completion Warranty and Punch Work: Protecting Your Margins After the Job Ends
Warranty walks, punch lists, and post-completion callbacks eat into subcontractor margins. Learn how MSA warranty clauses work, when you can push back on mobilization costs, and how to document your way out of disputes.
Cash Flow GuideMechanic's Lien Rights for Subcontractors: What to Do When You're Not Getting Paid
A practical guide to mechanic's lien and materialman's lien rights for oilfield and construction subcontractors in Texas, Oklahoma, and Alberta — deadlines, filing steps, and leverage tactics.
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