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.
Cash FlowGlossary Term
Lien
Related Terms
Standby (standby Time)
Cash FlowTime when a subcontractor's crew or equipment is on-site but unable to work due to client-caused delays. Most contracts allow billing at a reduced standby rate during this period. Tracking and documenting standby time is critical to recovering these costs.
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.
PPI (Producer Price Index)
Cash FlowA government measure tracking price changes for goods and services at the producer level. Subcontractors use it to justify rate increases on long-term contracts when input costs rise. It also supports escalation clause negotiations with operators and prime contractors.
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.
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.
Work on Hand (WOH)
Cash FlowThe total value of contracted work that has not yet been completed. Used by bonding companies to assess contractor capacity and risk.
Latest Cash Flow News
Industry
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 FlowClaremore Data Center Deal Sends $172M to Oklahoma Schools, County
A Beale Infrastructure data center project near Claremore, Oklahoma will pay $172 million in PILOT funds to local schools and county agencies over 25 years, with Sequoyah Public Schools receiving the largest share at $100 million.
6 days 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.
11 days agoRelated Guides
Cash Flow Guide
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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