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Cash FlowGlossary Term

Lien Rights

Legal protections allowing subcontractors to place a claim against a property or project if payment is withheld. Filing a lien can prevent an owner from selling or refinancing until your invoice is settled. Deadlines to file are strict and vary by province, so act quickly when payment stalls.

Related Terms

Triple-Net Lease

Cash Flow

A property lease where the tenant pays rent plus property taxes, insurance, and maintenance costs. Subcontractors leasing yard space, shops, or staging areas often encounter this structure. Budget carefully — these added costs can significantly impact project overhead.

Dayrate

Cash Flow

A fixed daily fee charged by a subcontractor or equipment provider, regardless of hours worked or output produced. It covers labour, equipment, and overhead for that calendar day. Dayrates are common in drilling, rental, and specialised field service contracts.

Net Pay

Cash Flow

The amount a subcontractor or field worker actually receives after all deductions — such as taxes, union dues, equipment charges, or mobilisation costs — have been subtracted from gross earnings. For subcontracting companies, tracking net pay against invoiced amounts is critical to maintaining healthy margins on field projects.

Fuel Cost Escalation Clause

Cash Flow

A contract provision allowing subcontractors to adjust their billing rates when fuel prices rise beyond an agreed threshold. It protects field service companies from absorbing significant fuel cost spikes on long-term jobs. Without this clause, subcontractors carry the full financial risk of volatile diesel and equipment fuel costs.

Project Financing

Cash Flow

A funding structure where a specific project secures its own debt and equity, separate from the sponsor's balance sheet. For subcontractors, payment depends heavily on the project's cash flow rather than the owner's overall finances. This increases payment risk, making it critical to review contract terms and security provisions carefully.

Backcharge

Cash Flow

A charge issued by an operator or general contractor to a subcontractor for costs incurred due to defective work, delays, or failure to meet contractual obligations.

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