Price Book

The minimum rate a subcontractor must charge to cover all direct and indirect costs without losing money. It includes labour, equipment, fuel, overhead, and mobilisation expenses. Pricing below breakeven erodes working capital and threatens project viability.

A formal document issued by prime contractors or operators asking subcontractors to submit detailed pricing and specifications for specific field services, equipment, or labour. RFQs typically include project scope, timelines, and technical requirements that subcontractors must address to compete for the contract.

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.

The process of tracking all costs associated with a specific job or project, including labor, equipment, materials, and overhead. Accurate job costing is essential for understanding profitability.

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

A temporary halt to production or operations at a well or facility, which often results in subcontractors being stood down with little notice, directly impacting billable hours and crew scheduling. Understanding shut-in clauses in your service agreement is critical, as they typically limit or eliminate your ability to claim standby pay or mobilisation costs during the downtime.

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