Fixed-Price Contract

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.

A court order declaring a prime contractor in default on financial obligations, often freezing payments to subcontractors. It signals serious insolvency risk and can delay or eliminate outstanding invoices. Subcontractors should file liens immediately upon receiving notice.

The 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.

A fixed daily fee charged by a subcontractor or equipment provider, regardless of hours worked or output produced. It covers labour, equipment, and overhead for that calendar day. Dayrates are common in drilling, rental, and specialised field service contracts.

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 contract clause that adjusts your billing rate when diesel or fuel prices shift beyond a set threshold. It protects subcontractors from absorbing sudden fuel cost spikes on long-term or remote field assignments. Negotiate the trigger percentage and index reference before signing.

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.

Post-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.

Mechanic'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.