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Cash FlowGlossary Term

Nonresidential Inputs

Materials, labour, and equipment costs tied to commercial and industrial construction projects. Subcontractors track these input costs to price bids accurately and protect margins. Rising input costs can erode fixed-price contract profitability quickly.

Related Terms

Suspension Clause

Cash Flow

A contract provision allowing the prime contractor or owner to pause work without terminating the agreement. Subcontractors may be entitled to standby rates or cost recovery during the suspension period. Review these clauses carefully, as payout terms and notice requirements vary widely.

Joint Check

Cash Flow

A payment cheque issued by a general contractor made payable to both the subcontractor and their supplier or creditor simultaneously. It ensures supplier invoices are paid directly from project funds, reducing lien risk. Subcontractors must endorse the cheque alongside the named party before cashing it.

Schedule Iii

Cash Flow

A contract exhibit listing approved subcontractor rates, markups, and reimbursable costs. It governs what you can invoice and at what price. Disputes over billing often trace back to misreading this schedule.

Payment Bond

Cash Flow

A surety bond guaranteeing that a general contractor will pay its subcontractors, labourers, and material suppliers. If the GC defaults, subcontractors can file a claim against the bond to recover unpaid amounts. It is common on publicly funded construction and pipeline projects.

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.

Operating Days

Cash Flow

The number of days equipment or crews are actively deployed and generating billable revenue on a job site. Subcontractors use this figure to track utilisation, forecast earnings, and negotiate day-rate contracts. Downtime, mobilisation delays, or weather shutdowns typically do not count as operating days.

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