Operating Breakeven

A payment cheque issued by a general contractor made payable to both the subcontractor and their supplier or creditor simultaneously. It ensures supplier invoices are paid directly from project funds, reducing lien risk. Subcontractors must endorse the cheque alongside the named party before cashing it.

A pricing model where the contractor bills for actual time spent and materials used, plus markup. Common for work where scope is uncertain.

A fixed, all-in rate quoted to a client that requires no further negotiation or adjustments. Subcontractors often offer a cash price to secure faster payment or simplified invoicing. It typically excludes extras like mobilisation, standby time, or material markups.

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.

A pricing model where work is billed per unit completed (per meter drilled, per cubic meter hauled, per joint welded, etc.).

A contract clause that adjusts your billing rate when diesel or fuel prices shift beyond a set threshold. It protects subcontractors from absorbing sudden fuel cost spikes on long-term or remote field assignments. Negotiate the trigger percentage and index reference before signing.

What Happens to Subcontractor Billing When a Project Stalls, Goes Over Budget, or Never Gets Commissioned

You did the work. The project was cancelled, shelved, or never activated. Here is what subcontractors need to know about billing rights, legal remedies, and how to get paid when no one wants to discuss the invoice.

Post-Completion Warranty and Punch Work: Protecting Your Margins After the Job Ends

Warranty walks, punch lists, and post-completion callbacks eat into subcontractor margins. Learn how MSA warranty clauses work, when you can push back on mobilization costs, and how to document your way out of disputes.

Mechanic's Lien Rights for Subcontractors: What to Do When You're Not Getting Paid

A practical guide to mechanic's lien and materialman's lien rights for oilfield and construction subcontractors in Texas, Oklahoma, and Alberta — deadlines, filing steps, and leverage tactics.