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.
Lien
Related Terms
Special Dividend
Cash FlowA one-time payment made by a client company to shareholders, separate from regular dividends. For subcontractors, it may signal a cash-flush operator likely to fast-track project approvals or expand field budgets. Watch for these announcements when forecasting upcoming contract opportunities.
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.
Unit Rate
Cash FlowA pricing model where work is billed per unit completed (per meter drilled, per cubic meter hauled, per joint welded, etc.).
Firm-Fixed-Price
Cash FlowA contract where the subcontractor agrees to deliver work for a set price, regardless of actual costs incurred. Cost overruns come out of your margin, not the client's budget. Accurate estimating and scope control are critical before signing.
DPO (Days Payable Outstanding)
Cash FlowA measure of how long a company takes to pay its invoices after receiving them. For subcontractors, a high DPO from your client means slower payment and tighter cash flow. Tracking client DPO helps you anticipate payment delays and manage operating costs.
Cost-Sharing
Cash FlowAn arrangement where costs for equipment, mobilisation, or resources are split between the contractor and client. Subcontractors should confirm cost-sharing terms in writing before mobilising. Unclear agreements often lead to disputed invoices and delayed payments.
Latest Cash Flow News
Cleco Launches Louisiana's Largest Grid Resiliency Push, Opening Door for Utility Construction Subs
Cleco's five-year, 550-plus project grid resiliency program across Louisiana, the utility's largest investment of its kind, signals sustained demand for substation, pole, and underground distribution work across the Gulf South.
3 months agoIndustryTutor Perini Division Lands $2B Federal Energy Resilience Contract, Opening Subcontract Pipeline
Perini Management Services Inc. has been awarded a $2 billion MATOC from the U.S. Army Corps of Engineers to support military energy and water infrastructure upgrades, creating a decade-long pipeline of subcontract opportunities.
4 months agoCash FlowUtilities Tighten Large-Load Tariffs With Upfront Fees, Longer Contracts
A new LBNL and Brattle Group analysis finds utilities increasingly requiring upfront payments, exit fees, and ramp schedules for large-load customers like data centers, a shift that will slow project timelines for grid-tie and on-site generation subcontractors.
5 days agoCash FlowTrump Administration Appeals Ruling Blocking Hudson Tunnel Funding Freeze
The Justice Department has appealed a federal court ruling that barred DOT from withholding funds on the $16B Hudson Tunnel Project, though reimbursements and construction continue for now, ENR reports.
12 days agoRelated Guides
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.
Cash Flow GuideWhat 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.
Cash Flow GuidePost-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.
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