Loaded Labour Rate

A reduced invoice amount offered to prime contractors or clients who pay before the standard due date. Common terms like 2/10 Net 30 mean a 2% discount if paid within 10 days. Subcontractors must weigh the cash-flow benefit against the revenue they give up.

A contract where a subcontractor processes or treats a client's raw material using your equipment or facility, without taking ownership of it. You charge a fee for the service rather than buying and reselling the material. Common in midstream and processing work, it directly affects how you invoice and recognise revenue.

The guaranteed minimum volume of work a client commits to a subcontractor over a contract period. It provides predictable revenue and helps justify keeping crews and equipment on standby. Subcontractors use base load commitments to stabilise cash flow between project spikes.

The rate at which labour, materials, and equipment costs rise over time on construction projects. For subcontractors, it can erode fixed-price contract margins if bids don't account for escalating costs. Escalation clauses in contracts help protect against unexpected cost increases during long-duration scopes.

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 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.

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