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.
Firm Customers
Related Terms
Construction Cost Index
Cash FlowA benchmark tracking changes in construction costs over time, including labour, materials, and equipment. Subcontractors use it to justify price adjustments on long-term contracts. It helps protect margins when input costs rise unexpectedly.
DPO (Days Payable Outstanding)
Cash FlowA 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.
Estimating Backlog
Cash FlowThe queue of pending bids and quotes a subcontractor has not yet completed or submitted to clients. A large estimating backlog can delay securing new work and strain small estimating teams. Tracking it helps prioritise high-value opportunities and allocate quoting resources effectively.
Operating Days
Cash FlowThe number of days equipment or crews are actively deployed and generating billable revenue on a job site. Subcontractors use this figure to track utilisation, forecast earnings, and negotiate day-rate contracts. Downtime, mobilisation delays, or weather shutdowns typically do not count as operating days.
Lease Bid
Cash FlowA formal pricing submission to secure a contract for equipment, vehicles, or workspace on a lease basis. Subcontractors use lease bids to compete for longer-term site access or equipment rental agreements. Winning a lease bid typically locks in your daily or monthly rate for the contract duration.
Beneficial Use
Cash FlowThe point when a client formally accepts and begins using delivered equipment or a completed scope of work. For subcontractors, this date often triggers final billing milestones or warranty periods. Confirm it in writing to protect your payment rights.
Latest Cash Flow News
Kinder Morgan Lifts Force Majeure, Restores Mexico Gas Flows on Tennessee Gas
Kinder Morgan has resumed US-Mexico gas deliveries on its Tennessee Gas Pipeline and lifted force majeure after repairs. Here is what the restart means for integrity, outage-window and callout crews, and for their cash flow.
5 days agoCash FlowHudson Tunnel Boring Starts on $16B Project Amid Funding Fights
Tunnel boring machines are set to start cutting through 5,100 feet of Palisades rock on the $16 billion Hudson Tunnel project. Subcontractors should weigh payment and federal funding exposure before signing on.
19 days agoCash FlowClaremore Data Center Deal Sends $172M to Oklahoma Schools, County
A Beale Infrastructure data center project near Claremore, Oklahoma will pay $172 million in PILOT funds to local schools and county agencies over 25 years, with Sequoyah Public Schools receiving the largest share at $100 million.
1 month 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.
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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