Payment 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.
Cash Flow Glossary Term
Net 30/Net 45/Net 60
Related Terms
Fixed-Rate Contract
Cash FlowA contract where the subcontractor agrees to complete a defined scope of work for a set price, regardless of actual labour or material costs incurred — meaning cost overruns come directly out of your margin. Common in construction and turnaround work, these contracts reward efficient crews and tight project management but carry significant financial risk if scope creep or site conditions aren't carefully managed upfront.
Net Pay
Cash FlowThe 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.
Day Rate
Cash FlowA pricing model where contractors are paid a fixed daily rate for equipment and/or personnel, regardless of the amount of work completed that day.
RFQ (Request for Quote)
Cash FlowA formal document issued by prime contractors or operators asking subcontractors to submit detailed pricing and specifications for specific field services, equipment, or labour. RFQs typically include project scope, timelines, and technical requirements that subcontractors must address to compete for the contract.
Progress Billing
Cash FlowInvoicing for work completed to date on a longer project, rather than waiting until project completion. Helps subcontractors maintain cash flow on extended jobs.
DSO (Days Sales Outstanding)
Cash FlowThe average number of days it takes to collect payment after a sale. For field service companies, DSO measures how long between completing work and receiving payment. Industry benchmarks range from 30-60 days.
Latest Cash Flow News
Cash Flow
Eni Cuts Annual Capex by $2B, Raises Shareholder Payouts Under 2026-30 Plan
Italian energy major Eni is reducing annual capital investment by roughly EUR 2 billion and boosting shareholder distributions under its updated five-year plan, a shift that signals tighter upstream spending through 2030.
yesterday Cash FlowAlberta Landowners Block Oil Company Operations Over Three Years of Unpaid Lease Payments
Edmonton-area landowners erected blockades against MAGA Energy after the company allegedly failed to pay land lease fees for three years, highlighting payment risks for field service contractors.
6 days ago Cash FlowTariffs Push Construction Input Prices Up 7% to Start 2026
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20 days ago Cash FlowStudy: Mid-Sized Field Service Companies Losing $1.8M Annually to Operational Inefficiency
New research quantifies the true cost of paper-based field operations. Revenue leakage, admin overhead, and delayed approvals combine to drain nearly 5% of revenue for a typical 75-person operation.
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