Project Financing

A contract clause that adjusts your billing rate when diesel or fuel prices shift beyond a set threshold. It protects subcontractors from absorbing sudden fuel cost spikes on long-term or remote field assignments. Negotiate the trigger percentage and index reference before signing.

A pricing model where the contractor bills for actual time spent and materials used, plus markup. Common for work where scope is uncertain.

A specific, billable unit of work or material listed in a contract that triggers payment when completed. Each pay item has a defined scope, unit of measure, and agreed price. Subcontractors invoice against pay items to document and collect earned revenue.

Revenue that is earned but never collected due to operational inefficiencies. Common causes include lost field tickets, unbilled equipment hours, forgotten third-party charges, and documentation errors. Industry estimates suggest 1-5% of revenue is lost to leakage in paper-based operations.

A buffer of extra labour, equipment, or budget set aside to cover unexpected delays or scope changes on a project. Subcontractors use it to avoid cost overruns when field conditions shift. Typically expressed as a percentage of the total estimated project value.

The overall rate of price increases across the economy, including fuel and materials. For subcontractors, it signals rising operating costs that may not be covered by fixed-rate contracts. Monitor it when renegotiating agreements or submitting bids.

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.

Post-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.

Mechanic'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.