Rule 144a

The 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.

A variable fee added to invoices to offset rising fuel costs for equipment, vehicles, and machinery. Rates are typically tied to a published fuel index and adjusted weekly or monthly. Subcontractors should confirm surcharge terms in their master service agreements before mobilising.

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.

Contracts that lock in a future price for North Sea crude oil, used as a global benchmark. When Brent prices drop, operators often cut budgets and delay projects, directly reducing subcontractor workloads. Tracking Brent futures helps field service companies anticipate slowdowns and plan their crews and bids accordingly.

The process a prime contractor or operator uses to review, approve, and finalise invoices before releasing payment to subcontractors. Understanding the settling system helps subs forecast cash flow and avoid payment delays. Timelines vary widely between clients, so confirm the cycle before mobilising.

A pre-negotiated scope item included in a contract at a fixed rate, which the client may activate later without rebidding. Common in turnarounds and construction projects for add-on scopes like additional inspection work or extra crews. Securing favourable rates upfront protects subcontractors from rushed low-ball pricing pressure mid-project.

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