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
Operating Breakeven
Cash FlowThe minimum revenue a subcontractor must generate to cover all field operating costs without profit or loss. It includes direct costs like labour, fuel, and equipment. Knowing this figure helps crews avoid underpriced bids that drain cash.
Take-Or-Pay
Cash FlowA contract clause requiring the client to pay for a minimum volume of services or materials, whether used or not. For subcontractors, it provides revenue protection when a project slows down or scopes are cut. Negotiate these clauses carefully to ensure your standby rates and mobilisation costs are covered.
Bridging Power
Cash FlowA subcontractor's ability to fund operations while waiting on client payments. It covers payroll, fuel, and equipment costs between invoice and payment. Strong bridging power prevents work stoppages during slow pay cycles.
Schedule Iii
Cash FlowA contract exhibit listing approved subcontractor rates, markups, and reimbursable costs. It governs what you can invoice and at what price. Disputes over billing often trace back to misreading this schedule.
Expansion Capital
Cash FlowFunds raised or borrowed to grow a subcontracting business beyond its current capacity. This covers new equipment, additional crews, or entry into new service markets. It differs from operating capital, which keeps day-to-day work running.
Baseload
Cash FlowA guaranteed minimum volume of work contracted over a set period. For subcontractors, baseload provides predictable revenue and justifies keeping crews and equipment on standby. It is the foundation around which additional spot or call-out work is scheduled.
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.
2 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.
3 months agoCash FlowTalos Energy Takes 50% Stake in Repsol's Deepwater Mexico Block
Talos Energy will pay up to $50 million to acquire a 50% working interest in Repsol's Block 29 offshore Mexico, targeting FID in 2027 on a discovery holding over 200 MMboe.
6 days agoCash FlowGordie Howe Bridge Set to Open Monday After Canada-Only Ceremony
Windsor held a Canada-only ceremony for the Gordie Howe International Bridge ahead of Monday's opening, after Ottawa scrapped a joint U.S. event amid tariff tensions.
11 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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