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Cash Flow Glossary 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

Spring Breakup

Cash Flow

The seasonal period when thawing ground and flooding restrict heavy equipment access to remote job sites. For subcontractors, it typically means project delays, suspended haul routes, and reduced billable work. Plan cash flow carefully to cover the slow period.

Progress Billing

Cash Flow

Invoicing for work completed to date on a longer project, rather than waiting until project completion. Helps subcontractors maintain cash flow on extended jobs.

Backcharge

Cash Flow

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.

FCF (Free Cash Flow)

Cash Flow

Cash remaining after covering operating costs and equipment or tool purchases. For subcontractors, strong FCF means you can take on new contracts, absorb payment delays, and avoid emergency borrowing. It is one of the clearest signs of a financially healthy field service business.

Capital Budget

Cash Flow

A client's approved spending plan for major projects, equipment, and infrastructure in a given year. When capital budgets are set or revised, subcontractors see direct impacts on contract awards and work volumes. Monitoring clients' capital budget cycles helps you time bids and resource planning effectively.

Operating Breakeven

Cash Flow

The minimum revenue a subcontractor must generate to cover all field operating costs without profit or loss. It includes direct costs like labour, fuel, and equipment. Knowing this figure helps crews avoid underpriced bids that drain cash.

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