A directive where a contractor is authorised to begin work before a formal purchase order is issued. The subcontractor agrees on a price verbally or in writing, then mobilises immediately. Common in urgent field situations, but carries payment risk if terms aren't confirmed in writing.
Price and Proceed
Related Terms
Escalation Clause
Cash FlowA contract provision that allows your rates or pricing to increase if specific costs rise, such as fuel, labour, or materials. It protects subcontractors from absorbing unexpected cost spikes during long-term projects. Always verify trigger conditions and notice requirements before signing.
Priced Option
Cash FlowA 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.
Liquidated Damages
Cash FlowA pre-agreed financial penalty charged when a subcontractor misses deadlines or fails to meet contract milestones. The amount is fixed in the contract, not calculated after the fact. LDs can seriously erode your project margins if schedule risks aren't managed upfront.
Blanket Authorization
Cash FlowA 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.
PPI (Producer Price Index)
Cash FlowA government measure tracking price changes for goods and services at the producer level. Subcontractors use it to justify rate increases on long-term contracts when input costs rise. It also supports escalation clause negotiations with operators and prime contractors.
Construction Cost Index
Cash FlowA benchmark tracking changes in construction costs over time, including labour, materials, and equipment. Subcontractors use it to justify price adjustments on long-term contracts. It helps protect margins when input costs rise unexpectedly.
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.
11 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
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.
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.
Cash Flow GuideMechanic'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.
Stay sharp on field operations
Industry news and insights, delivered to your inbox.
Subscribe to FieldNews