DPO (Days Payable Outstanding)

Contracts that lock in a future price for North Sea crude oil, used as a global benchmark. When Brent prices drop, operators often cut budgets and delay projects, directly reducing subcontractor workloads. Tracking Brent futures helps field service companies anticipate slowdowns and plan their crews and bids accordingly.

Cash remaining after covering operating costs and equipment or tool purchases. For subcontractors, strong FCF means you can take on new contracts, absorb payment delays, and avoid emergency borrowing. It is one of the clearest signs of a financially healthy field service business.

A pricing model where work is billed per unit completed (per meter drilled, per cubic meter hauled, per joint welded, etc.).

A freight rate applied when a shipment fills an entire truck, typically offering lower per-unit costs than partial loads. Subcontractors hauling equipment or materials to remote sites often negotiate FTL rates to reduce logistics costs. Consolidating loads before mobilisation helps field teams maximise savings under this pricing model.

The minimum rate a subcontractor must charge to cover all direct and indirect costs without losing money. It includes labour, equipment, fuel, overhead, and mobilisation expenses. Pricing below breakeven erodes working capital and threatens project viability.

Payment terms indicating when payment is due after invoice date. Net 30 means payment within 30 days. Many operators use Net 45 or Net 60, extending subcontractor cash cycles.

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