A contract provision allowing the prime contractor or owner to pause work without terminating the agreement. Subcontractors may be entitled to standby rates or cost recovery during the suspension period. Review these clauses carefully, as payout terms and notice requirements vary widely.
Suspension Clause
Related Terms
RFQ (Request for Quote)
Cash FlowA 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.
Non-Productive Time
Cash FlowNPT (Non-Productive Time) is any period when crews or equipment are on-site but not performing billable work. This includes weather delays, equipment breakdowns, or waiting on materials. Subcontractors often absorb NPT costs unless contracts clearly define standby rates.
Job Costing
Cash FlowThe process of tracking all costs associated with a specific job or project, including labor, equipment, materials, and overhead. Accurate job costing is essential for understanding profitability.
Priced Option
Cash FlowA 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.
Net 30/Net 45/Net 60
Cash FlowPayment terms indicating when payment is due after invoice date. Net 30 means payment within 30 days. Many operators use Net 45 or Net 60, extending subcontractor cash cycles.
Fixed-Price Contract
Cash FlowA contract where the subcontractor agrees to complete a defined scope of work for a set price regardless of actual labour, equipment, or material costs incurred — meaning cost overruns come directly out of your margin. Unlike time-and-material agreements, these contracts reward efficiency but expose field service companies to significant financial risk if scope creep or unforeseen site conditions arise.
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