FieldNews
Subscribe

Daily oil & gas and construction news for subcontractors

Cash FlowGlossary Term

Miller Act

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.

Related Terms

Iadc Ddr (international Association of Drilling Contractors Daily Drilling Report)

Cash Flow

A standardised daily report documenting rig operations, hours worked, and downtime on a drilling project. Subcontractors often must align their own daily reports with the IADC DDR for invoicing and performance verification. Discrepancies between your records and the DDR can delay payment or trigger billing disputes.

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.

Diesel Surcharge

Cash Flow

A variable fee added to invoices to recover fuel cost fluctuations on equipment-heavy jobs. Subcontractors often tie it to a published index, such as the weekly rack price. Review prime contracts carefully — some owners cap or exclude surcharges entirely.

Lease Bid

Cash Flow

A formal pricing submission to secure a contract for equipment, vehicles, or workspace on a lease basis. Subcontractors use lease bids to compete for longer-term site access or equipment rental agreements. Winning a lease bid typically locks in your daily or monthly rate for the contract duration.

Consignment Inventory

Cash Flow

Materials or equipment stored at your job site but owned by the supplier until you use them. You only pay when items are consumed, reducing upfront capital tied up on remote projects. Common for frequently used consumables like fittings, gaskets, and PPE on long-duration field contracts.

Early Termination Option

Cash Flow

A contract clause allowing the hiring company to end a service agreement before the scheduled completion date. Subcontractors may receive a penalty payment, but it is rarely full contract value. Always clarify demobilisation costs and notice periods before signing.

Stay sharp on field operations

Industry news and insights, delivered to your inbox.

Subscribe to FieldNews
A community project byAimsio