Job Costing

A U.S. federal law requiring prime contractors on government projects to post payment bonds protecting subcontractors and suppliers. If unpaid, subs can file a claim directly against the bond. This provides a critical payment remedy when the prime contractor defaults.

A fee billed to clients to reserve your crew, equipment, or services during a set period — whether fully utilised or not. It protects subcontractors from revenue loss during standby or low-demand phases. Common in long-term service agreements for drilling, frac, or maintenance contracts.

A pricing structure where subcontractors charge a fixed daily rate for equipment, personnel, or services regardless of output. Rates are negotiated upfront and apply for each calendar or operational day on site. This model gives field crews predictable revenue but ties income directly to days worked, not project milestones.

A legal claim registered against a property or asset when a subcontractor hasn't been paid for work or materials. It prevents the owner from selling or refinancing until the debt is settled. In oil and gas and construction, liens are a key tool for protecting payment rights.

A buffer of extra labour, equipment, or budget set aside to cover unexpected delays or scope changes on a project. Subcontractors use it to avoid cost overruns when field conditions shift. Typically expressed as a percentage of the total estimated project value.

The interest rate set by the Bank of Canada that influences borrowing costs across the economy. When it rises, lines of credit and equipment financing become more expensive for subcontractors. It also affects how quickly clients pay invoices, tightening cash flow across the field service sector.

What Is an AFE in Oil and Gas and How Does It Affect Subcontractor Payments?

An AFE (Authorization for Expenditure) controls every dollar spent on an oilfield project. Learn how it affects your billing, change orders, and cash flow as a subcontractor.

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.