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.
Cash FlowGlossary Term
Change Order
Related Terms
Net 30/Net 45/Net 60
Cash FlowPayment terms indicating when payment is due after invoice date. Net 30 means payment within 30 days. Many operators use Net 45 or Net 60, extending subcontractor cash cycles.
Work on Hand (WOH)
Cash FlowThe total value of contracted work that has not yet been completed. Used by bonding companies to assess contractor capacity and risk.
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.
Backcharge
Cash FlowA 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.
Job Costing
Cash FlowThe 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.
Financial Close
Cash FlowThe point when project financing is fully secured and contractual obligations become binding. For subcontractors, it typically signals that mobilisation, procurement, and invoicing can officially begin. Work started before financial close carries significant payment risk.
Latest Cash Flow News
Cash Flow
Kiewit'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.
16 days agoIndustryObama Center Opens While Trade Subs Chase $2M-Plus in Unpaid Change Orders
Several union subcontractors on the $850-million Barack Obama Presidential Center say they haven't been paid for approved change orders, raising hard questions about payment protections on marquee public builds.
1 month agoIndustryEarly Preconstruction Involvement Wins More Work and Cuts Change Orders, Autodesk Says
Construction teams that treat preconstruction as a strategic advantage rather than a procedural step are winning more bids and protecting margins, according to sponsored analysis from Autodesk published on Construction Dive.
3 months agoCash FlowTalos Energy Takes 50% Stake in Repsol's Deepwater Mexico Block
Talos Energy will pay up to $50 million to acquire a 50% working interest in Repsol's Block 29 offshore Mexico, targeting FID in 2027 on a discovery holding over 200 MMboe.
yesterdayRelated Guides
Cash Flow Guide
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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