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Cash FlowGlossary Term

RFQ (Request for Quote)

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.

Related Terms

Full Truckload Pricing

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A 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

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Debt 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

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A 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

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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.

Fuel Escalation Clause

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A 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

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A 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.

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