Unit Rate

A contract provision allowing subcontractors to adjust their billing rates when fuel costs rise beyond an agreed threshold. It protects field crews and equipment operators from absorbing unexpected fuel price spikes. Without this clause, subcontractors bear the full risk of fuel cost increases mid-contract.

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 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.

The total value of contracted work that has been awarded but not yet completed. A healthy backlog signals steady upcoming revenue and helps subcontractors plan crew deployment and equipment needs. Thin backlogs often signal the need to ramp up bidding activity.

The 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.

A pricing model where the contractor agrees to complete a defined scope of work for a fixed total price, regardless of actual costs incurred.

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Learn which MSA clauses actually matter for oilfield subcontractors: indemnity, insurance, payment terms, and change orders. Know what you're signing.

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An AFE (Authorization for Expenditure) controls every dollar spent on an oilfield project. Learn how it affects your billing, change orders, and cash flow as a subcontractor.

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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.