A conflict between JV (Joint Venture) partners over cost-sharing, scope, or payments that can delay approvals and freeze subcontractor invoices. When JV partners disagree, field service companies often face work stoppages or withheld purchase orders. Always clarify which JV partner holds contracting authority before mobilising.
Joint Venture Dispute
Related Terms
Bridging Power
Cash FlowA subcontractor's ability to fund operations while waiting on client payments. It covers payroll, fuel, and equipment costs between invoice and payment. Strong bridging power prevents work stoppages during slow pay cycles.
Job Costing
Cash FlowThe process of tracking all costs associated with a specific job or project, including labor, equipment, materials, and overhead. Accurate job costing is essential for understanding profitability.
Unit Rate
Cash FlowA pricing model where work is billed per unit completed (per meter drilled, per cubic meter hauled, per joint welded, etc.).
Lump Sum
Cash FlowA pricing model where the contractor agrees to complete a defined scope of work for a fixed total price, regardless of actual costs incurred.
DSO (Days Sales Outstanding)
Cash FlowThe average number of days it takes to collect payment after a sale. For field service companies, DSO measures how long between completing work and receiving payment. Industry benchmarks range from 30-60 days.
Early Termination Option
Cash FlowA contract clause allowing the hiring company to end a service agreement before the scheduled completion date. Subcontractors may receive a penalty payment, but it is rarely full contract value. Always clarify demobilisation costs and notice periods before signing.
Latest Cash Flow News
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1 month agoCash FlowUtilities Tighten Large-Load Tariffs With Upfront Fees, Longer Contracts
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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.
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