Triple-Net Lease

A formal document filed by subcontractors to release unpaid lien claims against a project owner's property. It is typically used when a general contractor fails to pass payment down the chain. Understanding this process helps field service companies recover outstanding invoices through legal channels.

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.

A lump-sum payment made to a subcontractor to settle or terminate a contract early. It compensates for remaining work, mobilisation costs, or lost profit margins. Subcontractors should verify buyout terms are clearly written into their agreements before signing.

A fee billed to clients to reserve your crew, equipment, or services during a set period — whether fully utilised or not. It protects subcontractors from revenue loss during standby or low-demand phases. Common in long-term service agreements for drilling, frac, or maintenance contracts.

A measure of how long a company takes to pay its invoices after receiving them. For subcontractors, a high DPO from your client means slower payment and tighter cash flow. Tracking client DPO helps you anticipate payment delays and manage operating costs.

A specific, billable unit of work or material listed in a contract that triggers payment when completed. Each pay item has a defined scope, unit of measure, and agreed price. Subcontractors invoice against pay items to document and collect earned revenue.

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