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Cash Flow Glossary Term

Growth Capital

Funding used to expand a subcontracting business beyond its current capacity. This includes financing new equipment, hiring crews, or bidding larger contracts. It differs from operating capital, which covers day-to-day expenses.

Related Terms

Callbacks

Cash Flow

A return visit to a job site to fix work that failed inspection or did not meet spec. Callbacks are unpaid rework that directly cuts into a subcontractor's margin. Minimising them is critical to staying profitable on fixed-price contracts.

Dayrate Model

Cash Flow

A pricing structure where subcontractors charge a fixed daily rate for equipment, personnel, or services regardless of output. Rates are negotiated upfront and apply for each calendar or operational day on site. This model gives field crews predictable revenue but ties income directly to days worked, not project milestones.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation)

Cash Flow

A measure of a subcontractor's core operating profitability, stripping out financing and accounting costs. It helps field service companies assess whether their contracts and crews are generating real operational value. Clients and lenders often use it to evaluate a subcontractor's financial health before awarding work.

Direct Connector

Cash Flow

A company that hires subcontractors directly, without a staffing agency or broker in between. This typically means faster payments and clearer communication on scope and rates. Subcontractors often secure better margins by working with direct connectors.

Triple-Net Lease

Cash Flow

A property lease where the tenant pays rent plus property taxes, insurance, and maintenance costs. Subcontractors leasing yard space, shops, or staging areas often encounter this structure. Budget carefully — these added costs can significantly impact project overhead.

Operating Breakeven

Cash Flow

The minimum revenue a subcontractor must generate to cover all field operating costs without profit or loss. It includes direct costs like labour, fuel, and equipment. Knowing this figure helps crews avoid underpriced bids that drain cash.

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