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Cash FlowGlossary Term

Scope Creep

The gradual expansion of work beyond what is outlined in the original contract, often without additional compensation. Subcontractors may absorb extra tasks, materials, or labour under pressure from the prime contractor. Unchecked scope creep directly erodes project margins and can trigger disputes over change orders.

Related Terms

Backcharge

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A charge issued by an operator or general contractor to a subcontractor for costs incurred due to defective work, delays, or failure to meet contractual obligations.

Estimating Backlog

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The queue of pending bids and quotes a subcontractor has not yet completed or submitted to clients. A large estimating backlog can delay securing new work and strain small estimating teams. Tracking it helps prioritise high-value opportunities and allocate quoting resources effectively.

Fuel Surcharge

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A variable fee added to invoices to offset rising fuel costs for equipment, vehicles, and machinery. Rates are typically tied to a published fuel index and adjusted weekly or monthly. Subcontractors should confirm surcharge terms in their master service agreements before mobilising.

Mechanic's Lien

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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.

Ticket Rejection

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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.

Discharge Petition

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A formal document filed by subcontractors to release unpaid lien claims against a project owner's property. It is typically used when a general contractor fails to pass payment down the chain. Understanding this process helps field service companies recover outstanding invoices through legal channels.

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