Pay-When-Paid

The total value of contracted work that has been awarded but not yet completed. A healthy backlog signals steady upcoming revenue and helps subcontractors plan crew deployment and equipment needs. Thin backlogs often signal the need to ramp up bidding activity.

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.

Invoicing for work completed to date on a longer project, rather than waiting until project completion. Helps subcontractors maintain cash flow on extended jobs.

The point when project financing is fully secured and contractual obligations become binding. For subcontractors, it typically signals that mobilisation, procurement, and invoicing can officially begin. Work started before financial close carries significant payment risk.

An added cost built into project contracts to account for instability in regions where work is performed. For subcontractors, it affects bid pricing, insurance rates, and mobilisation costs. Clients in high-risk areas may pay elevated day rates to secure reliable field crews.

A formal document filed by subcontractors to release unpaid lien claims against a project owner's property. It is typically used when a general contractor fails to pass payment down the chain. Understanding this process helps field service companies recover outstanding invoices through legal channels.

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