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Cash FlowGlossary Term

Joint Venture Dispute

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.

Related Terms

Settling System

Cash Flow

The process a prime contractor or operator uses to review, approve, and finalise invoices before releasing payment to subcontractors. Understanding the settling system helps subs forecast cash flow and avoid payment delays. Timelines vary widely between clients, so confirm the cycle before mobilising.

Unplanned Outage

Cash Flow

A sudden, unscheduled shutdown of equipment or operations that halts field work without prior notice. For subcontractors, it often triggers standby time disputes and delayed milestone billing. Contracts should clearly define compensation terms for crew and equipment during unplanned downtime.

Change Order

Cash Flow

A formal written amendment to an existing contract that modifies scope, cost, or schedule. Subcontractors should never perform out-of-scope work without a signed change order. Undocumented changes are a leading cause of unpaid invoices and disputes.

CAPE (Consolidated Administration and Processing of Entries)

Cash Flow

A centralised system used by operators to consolidate and process contractor timesheets, work records, and billing entries. Subcontractors submit field data through CAPE to trigger payment and compliance verification. Accurate, timely entries are critical to avoiding payment delays.

Consignment Inventory

Cash Flow

Materials or equipment stored at your job site but owned by the supplier until you use them. You only pay when items are consumed, reducing upfront capital tied up on remote projects. Common for frequently used consumables like fittings, gaskets, and PPE on long-duration field contracts.

Material Escalation

Cash Flow

A contract provision allowing price adjustments when material costs rise above a set threshold. Subcontractors use it to recover cost increases on longer-duration projects. Without it, unexpected price spikes in steel, pipe, or consumables come directly out of your margin.

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