AFE (Authorization for Expenditure)

The process of separating raw natural gas into sellable components like propane, butane, and ethane at a processing facility. Subcontractors often support fractionation plants through instrumentation, maintenance, and turnaround work. Understanding the process helps crews align their scope with plant operating priorities.

The contractual framework that determines how an owner, general contractor, and subcontractors are organised on a project. It directly affects when you get hired, who you report to, and how your scope is defined. Common methods include DBB (Design-Bid-Build), DB (Design-Build), and EPCM (Engineering, Procurement, and Construction Management).

A contract between an operator and a service company that establishes the general terms and conditions for all future work. Individual jobs are then executed under work orders or AFEs referencing the MSA.

The assembly of piping, structural, or mechanical components in a controlled shop environment before site installation. Subcontractors often bid prefab scope separately from field installation work. It can reduce on-site labour hours and shorten project schedules.

A powered, elevated platform used to lift workers and tools to height for maintenance, construction, or inspection tasks. Common AWP types include scissor lifts, boom lifts, and man baskets. Subcontractors must verify operator certification and equipment inspection records before mobilising an AWP on site.

Work involving equipment or piping that handles highly alkaline chemicals, such as sodium hydroxide. Subcontractors must use compatible materials and certified personnel to avoid rapid corrosion and serious chemical burns. Specialised PPE and handling procedures are typically required by the client's safety plan.

What Is an AFE in Oil and Gas and How Does It Affect Subcontractor Payments?

An AFE (Authorization for Expenditure) controls every dollar spent on an oilfield project. Learn how it affects your billing, change orders, and cash flow as a subcontractor.

How Operator Mergers and Acquisitions Affect Your Subcontract Agreements

When operators merge, get acquired, or sell assets, subcontractor agreements are caught in the middle. Learn how M&A activity affects your MSA, payment terms, vendor status, and what to do before, during, and after a deal closes.

How Rig Count Trends Affect Subcontractor Demand and What to Do About It

Rig counts are the earliest signal of where field service work is heading. Learn how to read drilling activity trends, anticipate demand shifts, and position your crew before the phone stops ringing.