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.
RFQ (Request for Quote)
Related Terms
Full Truckload Pricing
Cash FlowA freight rate applied when a shipment fills an entire truck, typically offering lower per-unit costs than partial loads. Subcontractors hauling equipment or materials to remote sites often negotiate FTL rates to reduce logistics costs. Consolidating loads before mobilisation helps field teams maximise savings under this pricing model.
Senior Secured Notes
Cash FlowDebt instruments issued by large operators or prime contractors, backed by company assets. When a client carries heavy debt loads like these, subcontractors face higher payment risk if the borrower defaults. Always review a client's debt structure before committing to large scopes of work.
Price Book
Cash FlowA 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.
Shut-In
Cash FlowA 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.
Fuel Escalation Clause
Cash FlowA contract provision allowing subcontractors to adjust their billing rates when fuel costs rise beyond an agreed threshold. It protects field crews and equipment operators from absorbing unexpected fuel price spikes. Without this clause, subcontractors bear the full risk of fuel cost increases mid-contract.
Joint Venture Dispute
Cash FlowA conflict between JV (Joint Venture) partners over cost-sharing, scope, or payments that can delay approvals and freeze subcontractor invoices. When JV partners disagree, field service companies often face work stoppages or withheld purchase orders. Always clarify which JV partner holds contracting authority before mobilising.
Latest Cash Flow News
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1 month agoCash FlowGordie Howe Bridge Opens to Pedestrians as Vehicle Traffic Begins
The Gordie Howe International Bridge between Windsor and Detroit opened to pedestrians and cyclists this week, following last week's opening to motorists, according to a Canadian Press report via Daily Commercial News.
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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.
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