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Cash Flow Glossary Term

Phased Handover

A structured process where completed sections of a project are formally transferred to the client in stages rather than all at once. Each phase triggers its own inspection, sign-off, and often a progress payment. Subcontractors must track completion milestones carefully to avoid billing delays.

Related Terms

Construction Input Costs

Cash Flow

The direct costs subcontractors pay to deliver field work, including labour, materials, fuel, and equipment. These costs fluctuate with market conditions, directly squeezing margins if contracts aren't priced accordingly. Tracking them closely helps subcontractors identify when to renegotiate rates or escalation clauses.

Spot Price

Cash Flow

The current market rate for materials, fuel, or equipment rentals purchased for immediate delivery. Spot prices fluctuate daily, directly affecting your job cost estimates and margins. Locking in rates early can protect subcontractors from sudden price spikes mid-project.

Ticket Rejection

Cash Flow

When an operator returns a field ticket for correction before approval. Common causes include missing information, rate discrepancies, or insufficient documentation. Rejections delay payment and require rework.

Job Costing

Cash Flow

The 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.

Commercial Misalignment

Cash Flow

A 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.

Progress Billing

Cash Flow

Invoicing for work completed to date on a longer project, rather than waiting until project completion. Helps subcontractors maintain cash flow on extended jobs.

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