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Cash FlowGlossary Term

Unit Rate

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.

Master Default Order

Cash Flow

A court order declaring a prime contractor in default on financial obligations, often freezing payments to subcontractors. It signals serious insolvency risk and can delay or eliminate outstanding invoices. Subcontractors should file liens immediately upon receiving notice.

Heating Oil Futures

Cash Flow

Contracts locking in future heating oil prices, traded on commodity markets. Subcontractors use these trends to forecast fuel-related operating costs on remote or winter job sites. Rising futures signal higher equipment heating and site fuel expenses ahead.

Commercial Misalignment

Cash Flow

A disconnect between what a subcontractor quoted and what the client expects to pay for. This often surfaces during invoicing when scope, rates, or billing terms were not clearly agreed upon upfront. It can delay payments and strain relationships with prime contractors.

Non-Productive Time

Cash Flow

NPT (Non-Productive Time) is any period when crews or equipment are on-site but not performing billable work. This includes weather delays, equipment breakdowns, or waiting on materials. Subcontractors often absorb NPT costs unless contracts clearly define standby rates.

Planning Reserve Margin

Cash Flow

A buffer of extra labour, equipment, or budget set aside to cover unexpected delays or scope changes on a project. Subcontractors use it to avoid cost overruns when field conditions shift. Typically expressed as a percentage of the total estimated project value.

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