Payment Bond

A standing approval that allows subcontractors to perform recurring work up to a set dollar limit without requiring a new work order each time. It simplifies billing and reduces administrative delays on long-term contracts. Subcontractors should confirm spending thresholds in writing before mobilising crews.

A pre-negotiated scope item included in a contract at a fixed rate, which the client may activate later without rebidding. Common in turnarounds and construction projects for add-on scopes like additional inspection work or extra crews. Securing favourable rates upfront protects subcontractors from rushed low-ball pricing pressure mid-project.

A lump-sum payment made to a subcontractor to settle or terminate a contract early. It compensates for remaining work, mobilisation costs, or lost profit margins. Subcontractors should verify buyout terms are clearly written into their agreements before signing.

A document listing agreed-upon rates for various services, equipment, and materials between an operator and contractor. Field tickets are validated against the price book before approval.

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

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.

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