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Cash FlowGlossary Term

Unplanned Outage

A sudden, unscheduled shutdown of equipment or operations that halts field work without prior notice. For subcontractors, it often triggers standby time disputes and delayed milestone billing. Contracts should clearly define compensation terms for crew and equipment during unplanned downtime.

Related Terms

Firm Customers

Cash Flow

Clients committed to regular, ongoing work under standing agreements or master service contracts. For subcontractors, firm customers provide predictable scheduling and steady revenue. They reduce reliance on spot work and help justify keeping crews and equipment mobilised.

Alteration

Cash Flow

A formal change to an existing contract's scope, timeline, or pricing. Subcontractors must document alterations in writing to protect payment entitlements. Verbal agreements alone rarely hold up during disputes or audits.

Standby (standby Time)

Cash Flow

Time when a subcontractor's crew or equipment is on-site but unable to work due to client-caused delays. Most contracts allow billing at a reduced standby rate during this period. Tracking and documenting standby time is critical to recovering these costs.

Diesel Surcharge

Cash Flow

A variable fee added to invoices to recover fuel cost fluctuations on equipment-heavy jobs. Subcontractors often tie it to a published index, such as the weekly rack price. Review prime contracts carefully — some owners cap or exclude surcharges entirely.

Bridging Power

Cash Flow

A subcontractor's ability to fund operations while waiting on client payments. It covers payroll, fuel, and equipment costs between invoice and payment. Strong bridging power prevents work stoppages during slow pay cycles.

Job Costing

Cash Flow

The process of tracking all costs associated with a specific job or project, including labor, equipment, materials, and overhead. Accurate job costing is essential for understanding profitability.

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