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Cash Flow Glossary Term

Wholesale Cost

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.

Related Terms

Pay-When-Paid

Cash Flow

A contract clause where a general contractor delays paying subcontractors until the owner pays them first. This shifts financial risk downstream to subcontractors and field service companies. Review these clauses carefully, as they can significantly impact your cash flow on long projects.

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.

Phased Handover

Cash Flow

A structured process where completed sections of a project are formally transferred to the client in stages rather than all at once. Each phase triggers its own inspection, sign-off, and often a progress payment. Subcontractors must track completion milestones carefully to avoid billing delays.

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.

Differential

Cash Flow

A pay premium added to a base rate for working in hazardous, remote, or demanding conditions. Subcontractors should account for applicable differentials when pricing bids and setting crew rates.

LEM (Labour, Equipment, Materials)

Cash Flow

A breakdown of costs on a field ticket or invoice, separating charges into labor hours, equipment usage, and materials consumed.

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