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Cash Flow Glossary Term

Schedule Iii

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.

Related Terms

Fuel Cost Escalator

Cash Flow

A contract clause that adjusts your billing rate when diesel or fuel prices shift beyond a set threshold. It protects subcontractors from absorbing sudden fuel cost spikes on long-term or remote field assignments. Negotiate the trigger percentage and index reference before signing.

Drinking Water State Revolving Fund (dwsrf)

Cash Flow

A U.S. federal loan programme funding municipal drinking water infrastructure upgrades. Subcontractors often access steady pipeline and treatment plant work through DWSRF-backed projects. Expect strict regulatory compliance requirements and public-sector billing cycles on these contracts.

Callbacks

Cash Flow

A return visit to a job site to fix work that failed inspection or did not meet spec. Callbacks are unpaid rework that directly cuts into a subcontractor's margin. Minimising them is critical to staying profitable on fixed-price contracts.

Lump Sum

Cash Flow

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

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.

DPO (Days Payable Outstanding)

Cash Flow

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.

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