Net Pay

A formal written amendment to an existing contract that modifies scope, cost, or schedule. Subcontractors should never perform out-of-scope work without a signed change order. Undocumented changes are a leading cause of unpaid invoices and disputes.

A contract provision allowing subcontractors to adjust their billing rates when fuel costs rise beyond an agreed threshold. It protects field crews and equipment operators from absorbing unexpected fuel price spikes. Without this clause, subcontractors bear the full risk of fuel cost increases mid-contract.

The 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.

A contract where your payment depends on meeting specific targets, such as uptime, output, or safety metrics. Underperforming against those benchmarks can trigger penalties or reduced fees. Subcontractors must track KPIs closely to protect their margins.

A pricing model where contractors are paid a fixed daily rate for equipment and/or personnel, regardless of the amount of work completed that day.

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.

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