Bill of Materials

A formal document a subcontractor submits to a prime contractor or operator to express intent to bid on upcoming work. It is not a binding commitment, but helps secure a spot in the tender process. Common in pre-qualification stages for large oilfield or construction scopes.

Excavated soil, rock, or debris removed during trenching or grading and stockpiled on-site. Subcontractors are often responsible for its placement, management, and disposal per site plans. Improper handling can trigger environmental compliance issues and project delays.

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 percentage of resource revenue an operator pays to the Crown or landowner before profits are calculated. High royalty rates can reduce operator budgets, directly affecting subcontractor hiring and field service spending. Understanding local royalty structures helps subcontractors anticipate project volumes and client cash flow.

The process of controlling, monitoring, and removing sand produced alongside oil and gas to protect wellbore equipment and surface facilities. Subcontractors may be hired to install sand screens, separators, or erosion monitoring systems. Poor sand management accelerates equipment wear and increases maintenance callouts.

A temporary heating system using fluid-filled coils laid on the ground to thaw frozen soil or maintain process temperatures. Subcontractors are often hired to install, monitor, and remove these systems during cold-weather operations. Common in northern pipeline and facility projects where ground conditions affect construction timelines.

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.

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.