Fixed-Rate Contract

A reduced invoice amount offered to prime contractors or clients who pay before the standard due date. Common terms like 2/10 Net 30 mean a 2% discount if paid within 10 days. Subcontractors must weigh the cash-flow benefit against the revenue they give up.

The 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.

A contract where the client reimburses your actual costs and pays an additional agreed percentage or fee on top. Common in complex field projects where scope is hard to define upfront. Subcontractors must track and document all expenses carefully to get paid accurately.

The gradual increase or decrease in actual field quantities compared to original contract estimates. For subcontractors, untracked drift leads to unbilled work or disputed invoices at project close-out. Monitor quantities continuously to support change order claims.

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 fixed, all-in rate quoted to a client that requires no further negotiation or adjustments. Subcontractors often offer a cash price to secure faster payment or simplified invoicing. It typically excludes extras like mobilisation, standby time, or material markups.

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