DSO (Days Sales Outstanding)

Short-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.

Expected fluctuations in workload, crew demand, and billing cycles tied to specific times of year. In oil & gas and construction, busy seasons drive higher rates and faster payments. Slow seasons often mean delayed invoices, reduced headcount, and tighter cash flow.

Pricing arrangements where labour or service rates are automatically adjusted based on preset variables like fuel costs or inflation indices. Common in long-term oil and gas contracts, they reduce rate renegotiation between operators and subcontractors.

A pre-agreed financial penalty charged when a subcontractor misses deadlines or fails to meet contract milestones. The amount is fixed in the contract, not calculated after the fact. LDs can seriously erode your project margins if schedule risks aren't managed upfront.

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.

A variable fee added to invoices to recover fuel cost fluctuations on equipment-heavy jobs. Subcontractors often tie it to a published index, such as the weekly rack price. Review prime contracts carefully — some owners cap or exclude surcharges entirely.

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