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Cash FlowGlossary Term

Ticket Rejection

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.

Related Terms

Builders Lien

Cash Flow

A legal claim registered against a property when a subcontractor hasn't been paid for work or materials provided. It secures your right to payment by encumbering the owner's title. Filing deadlines are strict, so act quickly if invoices go unpaid.

Project-Level Debt

Cash Flow

Financing borrowed against a specific project's revenue, not the owner's overall assets. Subcontractors should know this because payment depends on that project performing financially. If the project underperforms, your invoices may be delayed or disputed.

Settling System

Cash Flow

The process a prime contractor or operator uses to review, approve, and finalise invoices before releasing payment to subcontractors. Understanding the settling system helps subs forecast cash flow and avoid payment delays. Timelines vary widely between clients, so confirm the cycle before mobilising.

Estimating Backlog

Cash Flow

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.

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.

Fuel Escalation Clause

Cash Flow

A contract provision allowing subcontractors to adjust their billing rates when fuel costs rise beyond an agreed threshold. It protects field crews and equipment operators from absorbing unexpected fuel price spikes. Without this clause, subcontractors bear the full risk of fuel cost increases mid-contract.

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