T&M (Time and Materials)

A return visit to a job site to fix work that failed inspection or did not meet spec. Callbacks are unpaid rework that directly cuts into a subcontractor's margin. Minimising them is critical to staying profitable on fixed-price contracts.

A pricing model where contractors are paid a fixed daily rate for equipment and/or personnel, regardless of the amount of work completed that day.

A contract where the subcontractor agrees to complete a defined scope of work for a set price, regardless of actual labour or material costs incurred — meaning cost overruns come directly out of your margin. Common in construction and turnaround work, these contracts reward efficient crews and tight project management but carry significant financial risk if scope creep or site conditions aren't carefully managed upfront.

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.

NPT (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.

Cash remaining after covering operating costs and equipment or tool purchases. For subcontractors, strong FCF means you can take on new contracts, absorb payment delays, and avoid emergency borrowing. It is one of the clearest signs of a financially healthy field service business.

Why Your Bid Lost (And It Probably Wasn't Just Price): How Industrial Subcontractors Can Present, Defend, and Win on Value

Losing bids you thought were competitive? The problem usually isn't your number. Learn why subcontractors lose work, how to present bids that justify your rate, and when to stop chasing price-driven operators.

How 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.

What Happens to Subcontractor Billing When a Project Stalls, Goes Over Budget, or Never Gets Commissioned

You did the work. The project was cancelled, shelved, or never activated. Here is what subcontractors need to know about billing rights, legal remedies, and how to get paid when no one wants to discuss the invoice.