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
Hookup
IndustryThe phase where installed equipment and systems are connected to utilities, instrumentation, and process lines. For subcontractors, hookup work often follows construction and represents a distinct, billable scope. Crews must coordinate closely with commissioning teams to avoid delays.
Differing Site Conditions
IndustryUnexpected ground, soil, or subsurface conditions that differ materially from what the contract documents described. Subcontractors can use this clause to claim additional compensation or time when surprises drive up costs. Always document and notify the general contractor or owner immediately upon discovery.
Mutual Waiver of Consequential Damages
IndustryA contract clause where both parties agree not to sue each other for indirect losses like lost profits or project delays. For subcontractors, this limits your liability if your work causes a costly shutdown. It also protects you from outsized claims that far exceed your contract value.
Tide Gate
IndustryA one-way valve or flap gate that allows water to drain freely but prevents backflow from rising tides or high water levels. Subcontractors working on coastal or waterfront sites must account for tide gate locations when planning drainage, excavation, or utility work. Ignoring these structures can cause flooding, schedule delays, and scope changes.
RFP (Request for Proposal)
IndustryA formal document issued by an operator or general contractor inviting subcontractors to bid on a scope of work. It outlines project requirements, timelines, and evaluation criteria. Responding competitively to RFPs is a primary way field service companies win new contracts.
Pressure-Regulating Valve
IndustryA PRV (Pressure-Regulating Valve) automatically maintains downstream pressure at a set level within piping or process systems. Subcontractors installing or servicing PRVs must follow manufacturer specs and site pressure ratings precisely. Improper calibration can trigger shutdowns, client penalties, or serious safety incidents.
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