Non-Productive Time

The average total cost of delivering a service or operating equipment, spread evenly across its full working life. Subcontractors use it to set competitive day rates that recover mobilisation, maintenance, and labour costs over time. It helps avoid underpricing long-term contracts where early margins look healthy but tail-end costs erode profit.

An arrangement where costs for equipment, mobilisation, or resources are split between the contractor and client. Subcontractors should confirm cost-sharing terms in writing before mobilising. Unclear agreements often lead to disputed invoices and delayed payments.

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.

A breakdown of costs on a field ticket or invoice, separating charges into labor hours, equipment usage, and materials consumed.

The final phase of a contract where all work is confirmed complete, documentation is submitted, and outstanding invoices are settled. For subcontractors, delays in close-out often mean delayed final payment. Completing punch lists, timesheets, and lien waivers promptly helps accelerate the process.

The process of tracking all costs associated with a specific job or project, including labor, equipment, materials, and overhead. Accurate job costing is essential for understanding profitability.

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