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.
Cash FlowGlossary Term
Revenue Leakage
Guides on this topic
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Job Costing for Field Service Companies: How to Know If You're Actually Making Money
A practical job costing guide for oilfield and construction subcontractors. Track labor, equipment, and materials per job to find profit leaks and bid smarter.
How to Reduce Field Ticket Rejections: A Subcontractor's Complete Guide
Learn why field ticket rejections happen, what every ticket must include, and proven steps to get oilfield invoices approved faster and protect your cash flow.
Related Terms
Basis Risk
Cash FlowThe gap between a benchmark price (like WTI crude) and the actual local price your client pays. When that gap widens unexpectedly, clients may cut field budgets mid-contract. This can delay your invoices or reduce your awarded scope.
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.
Wholesale Cost
Cash FlowThe base price a subcontractor pays to source materials, equipment, or supplies before adding markup. Understanding wholesale cost helps field service companies price jobs accurately and protect margins. It is the starting point for calculating billable rates to clients.
Master Default Order
Cash FlowA court order declaring a prime contractor in default on financial obligations, often freezing payments to subcontractors. It signals serious insolvency risk and can delay or eliminate outstanding invoices. Subcontractors should file liens immediately upon receiving notice.
Builders Lien
Cash FlowA legal claim registered against a property when a subcontractor hasn't been paid for work or materials provided. It secures your right to payment by encumbering the owner's title. Filing deadlines are strict, so act quickly if invoices go unpaid.
Loaded Labour Rate
Cash FlowThe true hourly cost of a worker, including wages, benefits, payroll taxes, and overhead. Subcontractors use it to set profitable bill rates for clients. Bidding below your loaded labour rate guarantees a loss on every hour worked.
Latest Cash Flow News
Cash Flow
Study: Mid-Sized Field Service Companies Losing $1.8M Annually to Operational Inefficiency
New research quantifies the true cost of paper-based field operations. Revenue leakage, admin overhead, and delayed approvals combine to drain nearly 5% of revenue for a typical 75-person operation.
6 months agoCash FlowUtilities Tighten Large-Load Tariffs With Upfront Fees, Longer Contracts
A new LBNL and Brattle Group analysis finds utilities increasingly requiring upfront payments, exit fees, and ramp schedules for large-load customers like data centers, a shift that will slow project timelines for grid-tie and on-site generation subcontractors.
5 days agoCash FlowTrump Administration Appeals Ruling Blocking Hudson Tunnel Funding Freeze
The Justice Department has appealed a federal court ruling that barred DOT from withholding funds on the $16B Hudson Tunnel Project, though reimbursements and construction continue for now, ENR reports.
12 days agoCash FlowMammoth Energy Still Owed $20M for 2017 Puerto Rico Storm Work
Nearly nine years after Hurricane Maria, Mammoth Energy subsidiary Cobra Acquisitions is still collecting on Puerto Rico power restoration invoices, with $20 million outstanding as of June 2026, OK Energy Today reports.
28 days agoRelated Guides
Industry Guide
How Operator Mergers and Acquisitions Affect Your Subcontract Agreements
When operators merge, get acquired, or sell assets, subcontractor agreements are caught in the middle. Learn how M&A activity affects your MSA, payment terms, vendor status, and what to do before, during, and after a deal closes.
Industry GuideHow Rig Count Trends Affect Subcontractor Demand and What to Do About It
Rig counts are the earliest signal of where field service work is heading. Learn how to read drilling activity trends, anticipate demand shifts, and position your crew before the phone stops ringing.
Compliance GuideHow to Read and Negotiate an Oilfield Master Service Agreement (MSA): A Subcontractor's Guide
Learn which MSA clauses actually matter for oilfield subcontractors: indemnity, insurance, payment terms, and change orders. Know what you're signing.
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