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Cash FlowGlossary Term

Lease Bid

A formal pricing submission to secure a contract for equipment, vehicles, or workspace on a lease basis. Subcontractors use lease bids to compete for longer-term site access or equipment rental agreements. Winning a lease bid typically locks in your daily or monthly rate for the contract duration.

Related Terms

DSO (Days Sales Outstanding)

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The 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.

Net 30/Net 45/Net 60

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Payment terms indicating when payment is due after invoice date. Net 30 means payment within 30 days. Many operators use Net 45 or Net 60, extending subcontractor cash cycles.

Capital Budget

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A client's approved spending plan for major projects, equipment, and infrastructure in a given year. When capital budgets are set or revised, subcontractors see direct impacts on contract awards and work volumes. Monitoring clients' capital budget cycles helps you time bids and resource planning effectively.

Fuel Escalation Clause

Cash Flow

A contract provision allowing subcontractors to adjust their billing rates when fuel costs rise beyond an agreed threshold. It protects field crews and equipment operators from absorbing unexpected fuel price spikes. Without this clause, subcontractors bear the full risk of fuel cost increases mid-contract.

Firm-Fixed-Price

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A contract where the subcontractor agrees to deliver work for a set price, regardless of actual costs incurred. Cost overruns come out of your margin, not the client's budget. Accurate estimating and scope control are critical before signing.

Close-Out

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The final phase of a contract where all work is confirmed complete, documentation is submitted, and outstanding invoices are settled. For subcontractors, delays in close-out often mean delayed final payment. Completing punch lists, timesheets, and lien waivers promptly helps accelerate the process.

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