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Cash FlowGlossary Term

Fuel Surcharge

A variable fee added to invoices to offset rising fuel costs for equipment, vehicles, and machinery. Rates are typically tied to a published fuel index and adjusted weekly or monthly. Subcontractors should confirm surcharge terms in their master service agreements before mobilising.

Related Terms

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.

Senior Secured Notes

Cash Flow

Debt instruments issued by large operators or prime contractors, backed by company assets. When a client carries heavy debt loads like these, subcontractors face higher payment risk if the borrower defaults. Always review a client's debt structure before committing to large scopes of work.

Fuel Cost Escalator

Cash Flow

A 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.

Spring Breakup

Cash Flow

The seasonal period when thawing ground and flooding restrict heavy equipment access to remote job sites. For subcontractors, it typically means project delays, suspended haul routes, and reduced billable work. Plan cash flow carefully to cover the slow period.

Full Truckload Pricing

Cash Flow

A freight rate applied when a shipment fills an entire truck, typically offering lower per-unit costs than partial loads. Subcontractors hauling equipment or materials to remote sites often negotiate FTL rates to reduce logistics costs. Consolidating loads before mobilisation helps field teams maximise savings under this pricing model.

Committed Utilization Agreement

Cash Flow

A contract where a client guarantees a minimum percentage of hours or days your equipment and crew will be engaged over a set period. It protects subcontractors from revenue gaps during slow cycles. Rates are often discounted in exchange for that guaranteed volume.

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