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Cash Flow Glossary Term

Seasonal Norms

Expected fluctuations in workload, crew demand, and billing cycles tied to specific times of year. In oil & gas and construction, busy seasons drive higher rates and faster payments. Slow seasons often mean delayed invoices, reduced headcount, and tighter cash flow.

Related Terms

PPI (Producer Price Index)

Cash Flow

A government measure tracking price changes for goods and services at the producer level. Subcontractors use it to justify rate increases on long-term contracts when input costs rise. It also supports escalation clause negotiations with operators and prime contractors.

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.

Baseload

Cash Flow

A guaranteed minimum volume of work contracted over a set period. For subcontractors, baseload provides predictable revenue and justifies keeping crews and equipment on standby. It is the foundation around which additional spot or call-out work is scheduled.

Wholesale Cost

Cash Flow

The 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.

Buyout

Cash Flow

A lump-sum payment made to a subcontractor to settle or terminate a contract early. It compensates for remaining work, mobilisation costs, or lost profit margins. Subcontractors should verify buyout terms are clearly written into their agreements before signing.

Red Flag Warning

Cash Flow

A signal that a client or project poses serious financial or operational risk to a subcontractor. Common triggers include late payments, scope disputes, or sudden crew access restrictions. Recognising these early helps subcontractors protect revenue and avoid costly disputes.

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