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Cash Flow Glossary Term

Breakeven Cost

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.

Related Terms

Price Book

Cash Flow

A document listing agreed-upon rates for various services, equipment, and materials between an operator and contractor. Field tickets are validated against the price book before approval.

Lien Rights

Cash Flow

Legal protections allowing subcontractors to place a claim against a property or project if payment is withheld. Filing a lien can prevent an owner from selling or refinancing until your invoice is settled. Deadlines to file are strict and vary by province, so act quickly when payment stalls.

CWIP (Construction Work in Progress)

Cash Flow

An 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.

Rescheduling

Cash Flow

Rescheduling occurs when a client moves a confirmed job to a new date, disrupting crew and equipment plans. Subcontractors should have rescheduling clauses in contracts to recover standby costs. Repeated rescheduling without compensation can seriously damage a small operator's cash flow.

Wholesale Cost

Cash Flow

The base price a subcontractor pays to source materials, equipment, or supplies before adding markup. Understanding wholesale cost helps field service companies price jobs accurately and protect margins. It is the starting point for calculating billable rates to clients.

Change Order

Cash Flow

A formal written amendment to an existing contract that modifies scope, cost, or schedule. Subcontractors should never perform out-of-scope work without a signed change order. Undocumented changes are a leading cause of unpaid invoices and disputes.

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