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Cash Flow Glossary Term

Firm Customers

Clients committed to regular, ongoing work under standing agreements or master service contracts. For subcontractors, firm customers provide predictable scheduling and steady revenue. They reduce reliance on spot work and help justify keeping crews and equipment mobilised.

Related Terms

Baseload

Cash Flow

A guaranteed minimum volume of work contracted over a set period. For subcontractors, baseload provides predictable revenue and justifies keeping crews and equipment on standby. It is the foundation around which additional spot or call-out work is scheduled.

Procurement Sprawl

Cash Flow

When a subcontractor sources materials, tools, or services through too many uncoordinated vendors. This drives up costs, creates invoice chaos, and delays field operations. Consolidating suppliers helps control spend and simplify accounts payable.

Joint Check

Cash Flow

A payment cheque issued by a general contractor made payable to both the subcontractor and their supplier or creditor simultaneously. It ensures supplier invoices are paid directly from project funds, reducing lien risk. Subcontractors must endorse the cheque alongside the named party before cashing it.

ITC (Investment Tax Credit)

Cash Flow

A federal tax incentive that reduces the taxes a subcontractor owes based on eligible capital investments, such as purchasing equipment or machinery. Field service companies can apply ITCs to offset costs on qualifying assets used in operations. This can improve cash flow by lowering overall tax liability at year-end.

Blanket Authorization

Cash Flow

A standing approval that allows subcontractors to perform recurring work up to a set dollar limit without requiring a new work order each time. It simplifies billing and reduces administrative delays on long-term contracts. Subcontractors should confirm spending thresholds in writing before mobilising crews.

Core Inflation

Cash Flow

A measure of price increases that excludes volatile food and energy costs. For subcontractors, it reflects sustained rises in labour, materials, and equipment costs. Use it to justify rate adjustments in long-term service agreements.

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