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Cash FlowGlossary Term

Procurement Sprawl

When a subcontractor sources materials, tools, or services through too many uncoordinated vendors. This drives up costs, creates invoice chaos, and delays field operations. Consolidating suppliers helps control spend and simplify accounts payable.

Related Terms

Revenue Leakage

Cash Flow

Revenue that is earned but never collected due to operational inefficiencies. Common causes include lost field tickets, unbilled equipment hours, forgotten third-party charges, and documentation errors. Industry estimates suggest 1-5% of revenue is lost to leakage in paper-based operations.

LEM (Labour, Equipment, Materials)

Cash Flow

A breakdown of costs on a field ticket or invoice, separating charges into labor hours, equipment usage, and materials consumed.

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.

Mechanic's Lien

Cash Flow

A legal claim registered against a property or project when a subcontractor hasn't been paid for labour or materials. It prevents the owner from selling or refinancing until the debt is resolved. Filing deadlines are strict, so act quickly if payment is overdue.

Lien

Cash Flow

A legal claim registered against a property or asset when a subcontractor hasn't been paid for work or materials. It prevents the owner from selling or refinancing until the debt is settled. In oil and gas and construction, liens are a key tool for protecting payment rights.

Miller Act

Cash Flow

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.

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