A measure of a subcontractor's core operating profitability, stripping out financing and accounting costs. It helps field service companies assess whether their contracts and crews are generating real operational value. Clients and lenders often use it to evaluate a subcontractor's financial health before awarding work.
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation)
Related Terms
Drinking Water State Revolving Fund (dwsrf)
Cash FlowA U.S. federal loan programme funding municipal drinking water infrastructure upgrades. Subcontractors often access steady pipeline and treatment plant work through DWSRF-backed projects. Expect strict regulatory compliance requirements and public-sector billing cycles on these contracts.
Quantity Drift
Cash FlowThe gradual increase or decrease in actual field quantities compared to original contract estimates. For subcontractors, untracked drift leads to unbilled work or disputed invoices at project close-out. Monitor quantities continuously to support change order claims.
Adjusted Ebitda (earnings Before Interest, Taxes, Depreciation and Amortisation)
Cash FlowA profitability measure that strips out non-cash costs and one-time charges, showing true operational earnings. For subcontractors, it reveals how much cash your field operations actually generate. Clients and lenders use it to assess your financial health before awarding contracts or extending credit.
Capacity Charges
Cash FlowFees paid to reserve a subcontractor's workforce or equipment availability, regardless of actual utilisation. Clients use these to secure priority access during peak demand periods. For subcontractors, they provide predictable revenue even during standby phases.
Expansion Capital
Cash FlowFunds raised or borrowed to grow a subcontracting business beyond its current capacity. This covers new equipment, additional crews, or entry into new service markets. It differs from operating capital, which keeps day-to-day work running.
CAPE (Consolidated Administration and Processing of Entries)
Cash FlowA centralised system used by operators to consolidate and process contractor timesheets, work records, and billing entries. Subcontractors submit field data through CAPE to trigger payment and compliance verification. Accurate, timely entries are critical to avoiding payment delays.
Latest Cash Flow News
Tidewater Midstream Posts Sharp EBITDA Drop, Sells Assets Amid 2025 Losses
Tidewater Midstream reported a $30 million net loss in Q4 2025 and adjusted EBITDA fell to $3 million from $20 million a year earlier, as the Canadian midstream company sold assets and pivoted toward renewable fuel production.
5 months agoCash FlowUtilities Tighten Large-Load Tariffs With Upfront Fees, Longer Contracts
A new LBNL and Brattle Group analysis finds utilities increasingly requiring upfront payments, exit fees, and ramp schedules for large-load customers like data centers, a shift that will slow project timelines for grid-tie and on-site generation subcontractors.
3 days agoCash FlowTrump Administration Appeals Ruling Blocking Hudson Tunnel Funding Freeze
The Justice Department has appealed a federal court ruling that barred DOT from withholding funds on the $16B Hudson Tunnel Project, though reimbursements and construction continue for now, ENR reports.
10 days agoCash FlowMammoth Energy Still Owed $20M for 2017 Puerto Rico Storm Work
Nearly nine years after Hurricane Maria, Mammoth Energy subsidiary Cobra Acquisitions is still collecting on Puerto Rico power restoration invoices, with $20 million outstanding as of June 2026, OK Energy Today reports.
26 days 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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