The number of days equipment or crews are actively deployed and generating billable revenue on a job site. Subcontractors use this figure to track utilisation, forecast earnings, and negotiate day-rate contracts. Downtime, mobilisation delays, or weather shutdowns typically do not count as operating days.
Operating Days
Related Terms
Firm Customers
Cash FlowClients committed to regular, ongoing work under standing agreements or master service contracts. For subcontractors, firm customers provide predictable scheduling and steady revenue. They reduce reliance on spot work and help justify keeping crews and equipment mobilised.
Backcharge
Cash FlowA 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.
Consignment Inventory
Cash FlowMaterials 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.
Diesel Surcharge
Cash FlowA 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.
Pay-When-Paid
Cash FlowA contract clause where a general contractor delays paying subcontractors until the owner pays them first. This shifts financial risk downstream to subcontractors and field service companies. Review these clauses carefully, as they can significantly impact your cash flow on long projects.
Iadc Ddr (international Association of Drilling Contractors Daily Drilling Report)
Cash FlowA 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.
Latest Cash Flow News
Aecon and Arctic Gateway Sign MOU for Port of Churchill and Hudson Bay Railway Development
Aecon Group has signed a collaboration agreement with Arctic Gateway Group to support infrastructure development in northern Manitoba, targeting the Port of Churchill and Hudson Bay Railway. Subcontractors with remote construction experience should take note of upcoming opportunities in the region.
9 days ago Cash FlowNew Brunswick Prompt Payment Law Passed in 2023, Still Not Enforced — And Contractors Are Paying the Price
New Brunswick's prompt payment legislation received Royal Assent in 2023, but with no enforcement date set and no draft regulations released, contractors are still waiting months to get paid. Here's what the ongoing delay means for cash flow.
1 month ago Cash FlowCash Flow Strategy Gives Contractors an Edge in Volatile Market
Engineering News-Record outlines how contractors can manage cash flow through payment term negotiations, digital payments, and financial planning tools to stay competitive amid rising costs and economic uncertainty.
2 months ago Cash FlowChariot Backs Angola Offshore Deal With $12M, Gains Access to 4,000 bpd from Chevron-Operated Block
Chariot is financing an Angolan offshore acquisition with $12 million, securing production-linked cash flows from Block 14, a Chevron-operated asset producing around 40,000 bpd gross since 1999.
2 months agoRelated Guides
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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.
Cash Flow GuidePost-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.
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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.
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