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Cash Flow Glossary Term

Construction Input Costs

The direct costs subcontractors pay to deliver field work, including labour, materials, fuel, and equipment. These costs fluctuate with market conditions, directly squeezing margins if contracts aren't priced accordingly. Tracking them closely helps subcontractors identify when to renegotiate rates or escalation clauses.

Related Terms

Emergency Relief Funding

Cash Flow

Short-term financial assistance available to subcontractors facing sudden revenue loss due to site shutdowns, disasters, or contract cancellations. Funding may come from government programmes, industry associations, or lenders. Eligibility often requires proof of active contracts and demonstrated financial hardship.

Spring Breakup

Cash Flow

The 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.

T&M (Time and Materials)

Cash Flow

A pricing model where the contractor bills for actual time spent and materials used, plus markup. Common for work where scope is uncertain.

Backcharge

Cash Flow

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.

Ticket Rejection

Cash Flow

When an operator returns a field ticket for correction before approval. Common causes include missing information, rate discrepancies, or insufficient documentation. Rejections delay payment and require rework.

Backlog

Cash Flow

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.

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