A collaborative agreement where owners, contractors, and subcontractors share project risks and rewards under a no-blame framework. Subcontractors may receive performance bonuses but also absorb a portion of cost overruns. Transparency in costs and open-book accounting are typically required.
Alliance Construction Contract
Related Terms
Modular Construction
IndustryA build method where structures are assembled from prefabricated units manufactured offsite, then transported and installed on location. Subcontractors are often scoped for site prep, mechanical tie-ins, or installation crews rather than full builds. Work tends to come in concentrated, short-duration packages tied to delivery schedules.
Integrated Project Delivery (ipd)
IndustryA project delivery model where owners, contractors, and subcontractors share contracts, risks, and rewards from early design through completion. Subcontractors are brought in earlier than traditional models, giving more input on planning and scheduling. Compensation is often tied to collective project outcomes rather than individual scope performance.
ROV (Remotely Operated Vehicle)
IndustryAn unmanned, tethered underwater robot used to inspect, survey, or perform work on subsea pipelines, wellheads, and structures — subcontractors providing ROV services typically require specialised operators and vessels, and should account for mobilisation costs and standby rates when bidding these scopes.
BHA (Bottom Hole Assembly)
IndustryThe collection of drilling tools and equipment at the bottom of the drill string, including the drill bit, drill collars, stabilizers, and downhole motors. For drilling subcontractors, BHA configuration directly impacts drilling performance, tool wear rates, and operational efficiency.
Lateral Length
IndustryThe horizontal distance drilled from the kickoff point to the end of a wellbore, typically measured in metres. Longer laterals mean more stages, more equipment, and extended crew time on location. Subcontractors should factor lateral length into job costing and resource planning.
SCADA (Supervisory Control and Data Acquisition)
IndustryA control system that monitors and manages field equipment like pipelines, compressors, and wellheads in real time. Subcontractors working on SCADA-connected sites must follow strict access and cybersecurity protocols. Your work may trigger automated alarms or shutdowns if procedures aren't followed precisely.
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