Plain-language definitions of the terms used across field service — the words that show up on estimates, dispatch boards, and invoices every day. Whether you run a shop or turn wrenches, this glossary explains each concept in general terms so you can talk pricing, scheduling, and paperwork with confidence. New to the trade? Start with what is field service management.
Pricing & profitability
Billable hours
The hours a technician can actually charge to customers, after subtracting drive time, admin, training, and idle time. Far lower than clock hours — and the number that most affects your true hourly cost. See: billable hourly rate calculator.
Flat-rate pricing
Charging one set price for a defined task regardless of how long it takes. It gives customers a predictable number up front and rewards efficient work, but requires accurate task costing to stay profitable. See: flat-rate vs time-and-materials.
Fully-loaded cost
The complete cost of putting a technician on a job — wage plus labor burden plus a share of overhead. It is the floor your price must clear before you make any profit.
Gross margin
The share of revenue left after subtracting the direct cost of delivering the work (labor and materials), usually expressed as a percentage. It is what remains to cover overhead and profit.
Labor burden
The cost of employing a technician beyond their wage — taxes, insurance, benefits, vehicle, and tools. Usually expressed as a percentage of wage.
Markup
The amount added to the cost of materials or parts to cover sourcing, handling, and overhead. It is expressed as a percentage of cost and is not the same as margin.
Price book
A structured list of the tasks, parts, and services a business offers, each with a pre-set price. It lets technicians quote consistent prices in the field without recalculating every job. See: field service pricing FAQ.
Time-and-materials (T&M)
Billing for the actual hours worked plus the materials used, rather than a fixed price. Common for diagnostic, emergency, or open-ended work where the scope is hard to predict. See: flat-rate vs time-and-materials.
Estimating & quoting
Change order
A documented adjustment to an approved scope of work — added tasks, removed items, or revised pricing — agreed before the extra work is done. It protects both sides when a job grows beyond the original plan.
Estimate
A priced scope of work given to a customer before the job, so they can approve it. Not a legally binding invoice, but the basis for one. See: how to write a service estimate.
Proposal
A more detailed, often formal document that presents recommended work, options, and pricing — used for larger or optional projects where the customer is choosing between approaches.
Quote
A firm price offered to a customer for a defined scope, typically held for a set period. In everyday use "quote" and "estimate" are often interchanged, though a quote usually implies a firmer commitment.
Scope of work
A clear description of exactly what will and will not be done on a job. A well-defined scope prevents disputes and is the anchor for accurate pricing. See: field service estimate template.
Scheduling & dispatch
Backlog
The queue of accepted or booked work that has not yet been completed. A healthy backlog signals demand; an unmanaged one signals scheduling or capacity problems.
Dispatch
Assigning a job to a specific technician at a specific time and getting them the details they need to do it.
Dispatch board
The visual schedule — physical or digital — that shows which technician is assigned to which job and when. It is the command center dispatchers use to balance the day's work.
Route optimization
Sequencing a technician's stops to minimize drive time and distance across the day. Better routing means more billable hours and lower fuel costs.
Service call
A single visit to a customer's location to diagnose or perform work. It may also refer to the base fee charged for showing up, sometimes called a trip or diagnostic fee.
Truck roll
The act of dispatching a technician and vehicle to a site. Because each truck roll carries real cost, reducing unnecessary ones is a common efficiency goal.
Work & job management
First-time fix rate
The share of jobs resolved on the first visit, without a return trip. A higher rate means happier customers and lower cost per job.
Job
A customer's overall request, which may include one or more visits or work orders.
Purchase order (PO)
A document authorizing the purchase of parts or materials at an agreed price, often issued to a supplier or required by a commercial customer before work proceeds.
Work order
The plan and record for a specific technician assignment: what to do, where, and what was actually done — including notes and photos.
Invoicing & payments
Accounts receivable (AR)
The money customers owe for work already invoiced but not yet paid. Tracking AR closely is essential to cash flow.
Deposit / retainer
Money collected up front before or during a job — a deposit toward a specific job, or a retainer holding capacity or covering ongoing work. It reduces risk on larger jobs and helps fund materials.
Invoice
The bill issued to a customer for completed work, listing the labor, parts, taxes, and total due. Unlike an estimate, it is a request for payment.
Net terms
The window a customer has to pay an invoice — "Net 30" means payment is due within 30 days. Common in commercial work; less so for residential.
Payment processing
The handling of customer payments — card, bank transfer, or digital methods — including the fees and settlement time involved. Faster processing shortens the gap between finishing work and getting paid.
Customers & agreements
Maintenance plan
A subscription-style arrangement bundling scheduled upkeep — inspections, tune-ups, or filter changes — for a recurring fee. Often overlaps with a service agreement and is a common source of recurring revenue.
Property / asset
The physical location served and the specific equipment within it — a property is the site (a home or building), while an asset is a piece of equipment there (a furnace, water heater, or rooftop unit). Tracking assets over time supports better service history.
ProviderCustomer / customer record
The stored profile for a customer a business serves — contact details, locations, equipment, and history. A single reliable customer record is the backbone of repeat business and accurate scheduling.
Recurring revenue
Predictable income that repeats on a schedule, typically from service agreements or maintenance plans. It smooths out seasonal swings and raises the value of a business.
Service agreement
An ongoing arrangement where a customer pays for scheduled maintenance visits, often in exchange for priority service and discounts. A key source of recurring revenue.
Service history
The record of past work performed for a customer or on a specific asset. Good history speeds diagnosis, supports warranty claims, and creates upsell opportunities.
People & operations
Callback
A return visit to redo or correct work that was not completed properly the first time, usually at the business's own expense. A high callback rate points to training or quality problems.
Technician utilization
The share of a technician's paid time spent on billable work versus idle, drive, or admin time. It is a core measure of workforce efficiency and directly affects profitability.
Upsell
Recommending additional work, better parts, or a service plan that genuinely benefits the customer during a visit. Done well it raises ticket size and customer satisfaction; done poorly it erodes trust.
Technology
Field service management (FSM)
The software and processes used to run field operations — scheduling, dispatch, work orders, invoicing, and customer records — in one connected system. See: what is field service management.
Mobile app / offline mode
The technician-facing software used on a phone or tablet in the field. Offline mode lets work continue without a signal and syncs the data once connection returns — essential for basements, rural sites, and mechanical rooms.
Definitions here are general and educational. Exact meanings can vary by trade, region, and software.