CWIP (Construction Work in Progress)

The rate at which labour, materials, and equipment costs rise over time on construction projects. For subcontractors, it can erode fixed-price contract margins if bids don't account for escalating costs. Escalation clauses in contracts help protect against unexpected cost increases during long-duration scopes.

A reduced invoice amount offered to prime contractors or clients who pay before the standard due date. Common terms like 2/10 Net 30 mean a 2% discount if paid within 10 days. Subcontractors must weigh the cash-flow benefit against the revenue they give up.

A measure of how long a company takes to pay its invoices after receiving them. For subcontractors, a high DPO from your client means slower payment and tighter cash flow. Tracking client DPO helps you anticipate payment delays and manage operating costs.

The amount a subcontractor or field worker actually receives after all deductions — such as taxes, union dues, equipment charges, or mobilisation costs — have been subtracted from gross earnings. For subcontracting companies, tracking net pay against invoiced amounts is critical to maintaining healthy margins on field projects.

The 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.

A formal document filed by a subcontractor to preserve lien rights on a project before work begins or early in the job. It notifies the property owner and general contractor that you have a financial stake in the project. Without it, you may lose the right to file a lien if payment is withheld.

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