A contract where the subcontractor agrees to complete a defined scope of work for a set price regardless of actual labour, equipment, or material costs incurred — meaning cost overruns come directly out of your margin. Unlike time-and-material agreements, these contracts reward efficiency but expose field service companies to significant financial risk if scope creep or unforeseen site conditions arise.
Cash Flow Glossary Term
Fixed-Price Contract
Related Terms
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.
Net 30/Net 45/Net 60
Cash FlowPayment 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.
Ticket Rejection
Cash FlowWhen an operator returns a field ticket for correction before approval. Common causes include missing information, rate discrepancies, or insufficient documentation. Rejections delay payment and require rework.
Job Costing
Cash FlowThe process of tracking all costs associated with a specific job or project, including labor, equipment, materials, and overhead. Accurate job costing is essential for understanding profitability.
Lump Sum
Cash FlowA pricing model where the contractor agrees to complete a defined scope of work for a fixed total price, regardless of actual costs incurred.
Unit Rate
Cash FlowA pricing model where work is billed per unit completed (per meter drilled, per cubic meter hauled, per joint welded, etc.).
Latest Cash Flow News
Cash Flow
Eni Cuts Annual Capex by $2B, Raises Shareholder Payouts Under 2026-30 Plan
Italian energy major Eni is reducing annual capital investment by roughly EUR 2 billion and boosting shareholder distributions under its updated five-year plan, a shift that signals tighter upstream spending through 2030.
yesterday Cash FlowAlberta Landowners Block Oil Company Operations Over Three Years of Unpaid Lease Payments
Edmonton-area landowners erected blockades against MAGA Energy after the company allegedly failed to pay land lease fees for three years, highlighting payment risks for field service contractors.
6 days ago Cash FlowTariffs Push Construction Input Prices Up 7% to Start 2026
January saw a sharp spike in nonresidential construction costs, driven by tariff-affected materials like copper, steel, and industrial controls. Here's what subcontractors need to know.
20 days ago Cash FlowStudy: Mid-Sized Field Service Companies Losing $1.8M Annually to Operational Inefficiency
New research quantifies the true cost of paper-based field operations. Revenue leakage, admin overhead, and delayed approvals combine to drain nearly 5% of revenue for a typical 75-person operation.
22 days agoRelated Guides
Cash Flow Guide
Job Costing for Field Service Companies: How to Know If You're Actually Making Money
A practical job costing guide for oilfield and construction subcontractors. Track labor, equipment, and materials per job to find profit leaks and bid smarter.
Cash Flow GuideHow to Reduce Field Ticket Rejections: A Subcontractor's Complete Guide
Learn why field ticket rejections happen, what every ticket must include, and proven steps to get oilfield invoices approved faster and protect your cash flow.
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