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Cash FlowGlossary Term

Face Exposure

The total dollar value of unpaid invoices a subcontractor has outstanding with a single client at any given time. High face exposure increases financial risk if a client delays payment or becomes insolvent. Subcontractors should monitor face exposure closely to avoid over-reliance on one payer.

Related Terms

Fuel Escalation Clause

Cash Flow

A contract provision allowing subcontractors to adjust their billing rates when fuel costs rise beyond an agreed threshold. It protects field crews and equipment operators from absorbing unexpected fuel price spikes. Without this clause, subcontractors bear the full risk of fuel cost increases mid-contract.

Breakeven Price

Cash Flow

The minimum rate a subcontractor must charge to cover all direct and indirect costs without losing money. It includes labour, equipment, fuel, overhead, and mobilisation expenses. Pricing below breakeven erodes working capital and threatens project viability.

Standby (standby Time)

Cash Flow

Time when a subcontractor's crew or equipment is on-site but unable to work due to client-caused delays. Most contracts allow billing at a reduced standby rate during this period. Tracking and documenting standby time is critical to recovering these costs.

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.

Escalation Clause

Cash Flow

A contract provision that allows your rates or pricing to increase if specific costs rise, such as fuel, labour, or materials. It protects subcontractors from absorbing unexpected cost spikes during long-term projects. Always verify trigger conditions and notice requirements before signing.

Working Capital

Cash Flow

The difference between your current assets and current liabilities — essentially the cash available to keep operations running. For subcontractors, it covers payroll, fuel, and equipment costs while awaiting client payment. Tight working capital is a common risk when payment terms stretch 60–90 days.

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