Wholesale Cost

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.

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.

Short-term loans that convert into equity if not repaid by a set date. Subcontractors may encounter these when seeking growth capital to fund equipment or crew expansion. They carry risk: lenders can become part-owners of your company.

The number of days equipment or crews are actively deployed and generating billable revenue on a job site. Subcontractors use this figure to track utilisation, forecast earnings, and negotiate day-rate contracts. Downtime, mobilisation delays, or weather shutdowns typically do not count as operating days.

A benchmark tracking changes in construction costs over time, including labour, materials, and equipment. Subcontractors use it to justify price adjustments on long-term contracts. It helps protect margins when input costs rise unexpectedly.

A company that hires subcontractors directly, without a staffing agency or broker in between. This typically means faster payments and clearer communication on scope and rates. Subcontractors often secure better margins by working with direct connectors.

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Post-Completion Warranty and Punch Work: Protecting Your Margins After the Job Ends

Warranty walks, punch lists, and post-completion callbacks eat into subcontractor margins. Learn how MSA warranty clauses work, when you can push back on mobilization costs, and how to document your way out of disputes.

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