A U.S. federal law requiring prime contractors on government projects to post payment bonds protecting subcontractors and suppliers. If unpaid, subs can file a claim directly against the bond. This provides a critical payment remedy when the prime contractor defaults.
Miller Act
Related Terms
Lease Bid
Cash FlowA 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.
Commercial Misalignment
Cash FlowA disconnect between what a subcontractor quoted and what the client expects to pay for. This often surfaces during invoicing when scope, rates, or billing terms were not clearly agreed upon upfront. It can delay payments and strain relationships with prime contractors.
Backcharge
Cash FlowA charge issued by an operator or general contractor to a subcontractor for costs incurred due to defective work, delays, or failure to meet contractual obligations.
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.
CAPE (Consolidated Administration and Processing of Entries)
Cash FlowA 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.
LEM (Labour, Equipment, Materials)
Cash FlowA breakdown of costs on a field ticket or invoice, separating charges into labor hours, equipment usage, and materials consumed.
Latest Cash Flow News
Aecon and Arctic Gateway Sign MOU for Port of Churchill and Hudson Bay Railway Development
Aecon Group has signed a collaboration agreement with Arctic Gateway Group to support infrastructure development in northern Manitoba, targeting the Port of Churchill and Hudson Bay Railway. Subcontractors with remote construction experience should take note of upcoming opportunities in the region.
18 days ago Cash FlowNew Brunswick Prompt Payment Law Passed in 2023, Still Not Enforced — And Contractors Are Paying the Price
New Brunswick's prompt payment legislation received Royal Assent in 2023, but with no enforcement date set and no draft regulations released, contractors are still waiting months to get paid. Here's what the ongoing delay means for cash flow.
1 month ago Cash FlowCash Flow Strategy Gives Contractors an Edge in Volatile Market
Engineering News-Record outlines how contractors can manage cash flow through payment term negotiations, digital payments, and financial planning tools to stay competitive amid rising costs and economic uncertainty.
2 months ago Cash FlowChariot Backs Angola Offshore Deal With $12M, Gains Access to 4,000 bpd from Chevron-Operated Block
Chariot is financing an Angolan offshore acquisition with $12 million, securing production-linked cash flows from Block 14, a Chevron-operated asset producing around 40,000 bpd gross since 1999.
2 months agoRelated Guides
What Happens to Subcontractor Billing When a Project Stalls, Goes Over Budget, or Never Gets Commissioned
You did the work. The project was cancelled, shelved, or never activated. Here is what subcontractors need to know about billing rights, legal remedies, and how to get paid when no one wants to discuss the invoice.
Cash Flow GuidePost-Completion Warranty and Punch Work: Protecting Your Margins After the Job Ends
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.
Cash Flow GuideMechanic's Lien Rights for Subcontractors: What to Do When You're Not Getting Paid
A practical guide to mechanic's lien and materialman's lien rights for oilfield and construction subcontractors in Texas, Oklahoma, and Alberta — deadlines, filing steps, and leverage tactics.
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