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Cash Flow Glossary Term

Full Truckload Pricing

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.

Related Terms

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.

Red Flag Warning

Cash Flow

A signal that a client or project poses serious financial or operational risk to a subcontractor. Common triggers include late payments, scope disputes, or sudden crew access restrictions. Recognising these early helps subcontractors protect revenue and avoid costly disputes.

Price Book

Cash Flow

A document listing agreed-upon rates for various services, equipment, and materials between an operator and contractor. Field tickets are validated against the price book before approval.

Cost-Sharing

Cash Flow

An arrangement where costs for equipment, mobilisation, or resources are split between the contractor and client. Subcontractors should confirm cost-sharing terms in writing before mobilising. Unclear agreements often lead to disputed invoices and delayed payments.

Progress Billing

Cash Flow

Invoicing for work completed to date on a longer project, rather than waiting until project completion. Helps subcontractors maintain cash flow on extended jobs.

DPO (Days Payable Outstanding)

Cash Flow

A 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.

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