Rescheduling occurs when a client moves a confirmed job to a new date, disrupting crew and equipment plans. Subcontractors should have rescheduling clauses in contracts to recover standby costs. Repeated rescheduling without compensation can seriously damage a small operator's cash flow.
Rescheduling
Related Terms
Net 30/Net 45/Net 60
Cash FlowPayment terms indicating when payment is due after invoice date. Net 30 means payment within 30 days. Many operators use Net 45 or Net 60, extending subcontractor cash cycles.
Standby (standby Time)
Cash FlowTime when a subcontractor's crew or equipment is on-site but unable to work due to client-caused delays. Most contracts allow billing at a reduced standby rate during this period. Tracking and documenting standby time is critical to recovering these costs.
Consignment Inventory
Cash FlowMaterials 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.
Lien Rights
Cash FlowLegal protections allowing subcontractors to place a claim against a property or project if payment is withheld. Filing a lien can prevent an owner from selling or refinancing until your invoice is settled. Deadlines to file are strict and vary by province, so act quickly when payment stalls.
Lump Sum
Cash FlowA pricing model where the contractor agrees to complete a defined scope of work for a fixed total price, regardless of actual costs incurred.
Wholesale Cost
Cash FlowThe base price a subcontractor pays to source materials, equipment, or supplies before adding markup. Understanding wholesale cost helps field service companies price jobs accurately and protect margins. It is the starting point for calculating billable rates to clients.
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