The minimum amount a subcontractor must charge to cover all project expenses without making a loss. It includes labour, equipment, fuel, insurance, and overhead. Pricing below breakeven erodes margins and can threaten business viability.
Breakeven Cost
Related Terms
Spring Breakup
Cash FlowThe seasonal period when thawing ground and flooding restrict heavy equipment access to remote job sites. For subcontractors, it typically means project delays, suspended haul routes, and reduced billable work. Plan cash flow carefully to cover the slow period.
CWIP (Construction Work in Progress)
Cash FlowAn accounting category tracking costs for projects not yet complete or placed into service. For subcontractors, your invoiced work may sit in a client's CWIP account until project completion. This can affect payment timing and how clients prioritise approving your billings.
Performance-Based Contract
Cash FlowA contract where your payment depends on meeting specific targets, such as uptime, output, or safety metrics. Underperforming against those benchmarks can trigger penalties or reduced fees. Subcontractors must track KPIs closely to protect their margins.
Progress Billing
Cash FlowInvoicing for work completed to date on a longer project, rather than waiting until project completion. Helps subcontractors maintain cash flow on extended jobs.
Fixed-Rate Contract
Cash FlowA 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.
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.
Latest Cash Flow News
Gordie Howe Bridge to Open July 27, Adding Second Detroit-Windsor Span
U.S. and Canadian officials set a July 27 opening for the Gordie Howe International Bridge after a six-week delay tied to toll governance talks, adding a second commercial crossing between Detroit and Windsor.
yesterday Cash FlowKiewit's Weeks Marine Gets $88M Hudson Tunnel Change Order
The Gateway Development Commission approved an $88 million change order for Weeks Marine to clear submerged piles from the Hudson River, clearing the path for tunnel boring machines set to start in 2028.
3 days ago Cash FlowCourt Ruling Clears Funding Freeze on $16B Hudson Tunnel Project
A federal judge permanently blocked the U.S. Department of Transportation from withholding funds on the Hudson Tunnel Project, ruling the September freeze flagrantly violated federal law.
15 days ago Cash FlowAecon and Arctic Gateway Sign MOU for Port of Churchill and Hudson Bay Railway Development
Aecon Group has signed a collaboration agreement with Arctic Gateway Group to support infrastructure development in northern Manitoba, targeting the Port of Churchill and Hudson Bay Railway. Subcontractors with remote construction experience should take note of upcoming opportunities in the region.
1 month agoRelated Guides
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.
Cash Flow GuidePost-Completion Warranty and Punch Work: Protecting Your Margins After the Job Ends
Warranty walks, punch lists, and post-completion callbacks eat into subcontractor margins. Learn how MSA warranty clauses work, when you can push back on mobilization costs, and how to document your way out of disputes.
Cash Flow GuideMechanic's Lien Rights for Subcontractors: What to Do When You're Not Getting Paid
A practical guide to mechanic's lien and materialman's lien rights for oilfield and construction subcontractors in Texas, Oklahoma, and Alberta — deadlines, filing steps, and leverage tactics.
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