Funds 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.
Expansion Capital
Related Terms
Project Financing
Cash FlowA funding structure where a specific project secures its own debt and equity, separate from the sponsor's balance sheet. For subcontractors, payment depends heavily on the project's cash flow rather than the owner's overall finances. This increases payment risk, making it critical to review contract terms and security provisions carefully.
Consignment Inventory
Cash FlowMaterials or equipment stored at your job site but owned by the supplier until you use them. You only pay when items are consumed, reducing upfront capital tied up on remote projects. Common for frequently used consumables like fittings, gaskets, and PPE on long-duration field contracts.
DSO (Days Sales Outstanding)
Cash FlowThe average number of days it takes to collect payment after a sale. For field service companies, DSO measures how long between completing work and receiving payment. Industry benchmarks range from 30-60 days.
Fuel Cost Escalator
Cash FlowA contract clause that adjusts your billing rate when diesel or fuel prices shift beyond a set threshold. It protects subcontractors from absorbing sudden fuel cost spikes on long-term or remote field assignments. Negotiate the trigger percentage and index reference before signing.
Backlog
Cash FlowThe 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.
Heating Oil Futures
Cash FlowContracts locking in future heating oil prices, traded on commodity markets. Subcontractors use these trends to forecast fuel-related operating costs on remote or winter job sites. Rising futures signal higher equipment heating and site fuel expenses ahead.
Latest Cash Flow News
Utilities 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.
5 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.
12 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.
28 days agoCash FlowGordie Howe Bridge Opens to Pedestrians as Vehicle Traffic Begins
The Gordie Howe International Bridge between Windsor and Detroit opened to pedestrians and cyclists this week, following last week's opening to motorists, according to a Canadian Press report via Daily Commercial News.
1 month 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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