Principal Forgiveness

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.

A measure of how long a company takes to pay its invoices after receiving them. For subcontractors, a high DPO from your client means slower payment and tighter cash flow. Tracking client DPO helps you anticipate payment delays and manage operating costs.

A legal claim registered against a property when a subcontractor hasn't been paid for work or materials provided. It secures your right to payment by encumbering the owner's title. Filing deadlines are strict, so act quickly if invoices go unpaid.

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.

A pricing model where the contractor agrees to complete a defined scope of work for a fixed total price, regardless of actual costs incurred.

A benchmark tracking changes in construction costs over time, including labour, materials, and equipment. Subcontractors use it to justify price adjustments on long-term contracts. It helps protect margins when input costs rise unexpectedly.

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