A measure of how long a company takes to pay its invoices after receiving them. For subcontractors, a high DPO from your client means slower payment and tighter cash flow. Tracking client DPO helps you anticipate payment delays and manage operating costs.
DPO (Days Payable Outstanding)
Related Terms
Emergency Relief Funding
Cash FlowShort-term financial assistance available to subcontractors facing sudden revenue loss due to site shutdowns, disasters, or contract cancellations. Funding may come from government programmes, industry associations, or lenders. Eligibility often requires proof of active contracts and demonstrated financial hardship.
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.
Net Pay
Cash FlowThe amount a subcontractor or field worker actually receives after all deductions — such as taxes, union dues, equipment charges, or mobilisation costs — have been subtracted from gross earnings. For subcontracting companies, tracking net pay against invoiced amounts is critical to maintaining healthy margins on field projects.
Backlog
Cash FlowThe total value of contracted work that has been awarded but not yet completed. A healthy backlog signals steady upcoming revenue and helps subcontractors plan crew deployment and equipment needs. Thin backlogs often signal the need to ramp up bidding activity.
Unit Rate
Cash FlowA pricing model where work is billed per unit completed (per meter drilled, per cubic meter hauled, per joint welded, etc.).
LEM (Labour, Equipment, Materials)
Cash FlowA breakdown of costs on a field ticket or invoice, separating charges into labor hours, equipment usage, and materials consumed.
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