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Cash FlowGlossary 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

Cost Escalation

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An unplanned increase in project costs due to rising material prices, labour rates, or scope changes. Subcontractors without escalation clauses in their contracts absorb these overruns directly. Always negotiate cost escalation provisions before signing fixed-price agreements.

Project-Level Debt

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Financing borrowed against a specific project's revenue, not the owner's overall assets. Subcontractors should know this because payment depends on that project performing financially. If the project underperforms, your invoices may be delayed or disputed.

Bridging Power

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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.

Liquidated Damages

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A pre-agreed financial penalty charged when a subcontractor misses deadlines or fails to meet contract milestones. The amount is fixed in the contract, not calculated after the fact. LDs can seriously erode your project margins if schedule risks aren't managed upfront.

Scope Creep

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The gradual expansion of work beyond what is outlined in the original contract, often without additional compensation. Subcontractors may absorb extra tasks, materials, or labour under pressure from the prime contractor. Unchecked scope creep directly erodes project margins and can trigger disputes over change orders.

Drinking Water State Revolving Fund (dwsrf)

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A U.S. federal loan programme funding municipal drinking water infrastructure upgrades. Subcontractors often access steady pipeline and treatment plant work through DWSRF-backed projects. Expect strict regulatory compliance requirements and public-sector billing cycles on these contracts.

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