A pricing model where the contractor bills for actual time spent and materials used, plus markup. Common for work where scope is uncertain.
Cash Flow Glossary Term
T&M (Time and Materials)
Related Terms
Lump Sum
Cash FlowA pricing model where the contractor agrees to complete a defined scope of work for a fixed total price, regardless of actual costs incurred.
Backcharge
Cash FlowA charge issued by an operator or general contractor to a subcontractor for costs incurred due to defective work, delays, or failure to meet contractual obligations.
Net Pay
Cash FlowThe amount a subcontractor or field worker actually receives after all deductions — such as taxes, union dues, equipment charges, or mobilisation costs — have been subtracted from gross earnings. For subcontracting companies, tracking net pay against invoiced amounts is critical to maintaining healthy margins on field projects.
Day Rate
Cash FlowA pricing model where contractors are paid a fixed daily rate for equipment and/or personnel, regardless of the amount of work completed that day.
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.
LEM (Labour, Equipment, Materials)
Cash FlowA breakdown of costs on a field ticket or invoice, separating charges into labor hours, equipment usage, and materials consumed.
Latest Cash Flow News
Cash Flow
Eni Cuts Annual Capex by $2B, Raises Shareholder Payouts Under 2026-30 Plan
Italian energy major Eni is reducing annual capital investment by roughly EUR 2 billion and boosting shareholder distributions under its updated five-year plan, a shift that signals tighter upstream spending through 2030.
yesterday Cash FlowAlberta Landowners Block Oil Company Operations Over Three Years of Unpaid Lease Payments
Edmonton-area landowners erected blockades against MAGA Energy after the company allegedly failed to pay land lease fees for three years, highlighting payment risks for field service contractors.
6 days ago Cash FlowTariffs Push Construction Input Prices Up 7% to Start 2026
January saw a sharp spike in nonresidential construction costs, driven by tariff-affected materials like copper, steel, and industrial controls. Here's what subcontractors need to know.
20 days ago Cash FlowStudy: 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.
22 days agoRelated Guides
Cash Flow Guide
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.
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.
Cash Flow GuideHow 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.
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