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Cash FlowGlossary Term

Direct Connector

A company that hires subcontractors directly, without a staffing agency or broker in between. This typically means faster payments and clearer communication on scope and rates. Subcontractors often secure better margins by working with direct connectors.

Related Terms

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.

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.

Triple-Net Lease

Cash Flow

A property lease where the tenant pays rent plus property taxes, insurance, and maintenance costs. Subcontractors leasing yard space, shops, or staging areas often encounter this structure. Budget carefully — these added costs can significantly impact project overhead.

Bridging Power

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A subcontractor's ability to fund operations while waiting on client payments. It covers payroll, fuel, and equipment costs between invoice and payment. Strong bridging power prevents work stoppages during slow pay cycles.

Scope Creep

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The gradual expansion of work beyond what is outlined in the original contract, often without additional compensation. Subcontractors may absorb extra tasks, materials, or labour under pressure from the prime contractor. Unchecked scope creep directly erodes project margins and can trigger disputes over change orders.

DSO (Days Sales Outstanding)

Cash Flow

The 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.

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