A lump-sum payment made by an operator to secure rights to a lease block, separate from royalties. For subcontractors, a large bonus bid signals operator commitment and can indicate upcoming project activity in that area.
Bonus Bid
Related Terms
Multi-Trade Pipeline
IndustryA project requiring multiple specialised trades — such as welders, pipefitters, and electricians — deployed in sequence or simultaneously. Subcontractors must coordinate closely to avoid schedule conflicts and delays. Winning work on these projects often requires demonstrating multi-discipline capacity to the prime contractor.
Preferred Vendor Status
IndustryA designation granted by an operator or prime contractor that puts your company on an approved list for recurring work. It typically means faster bid access, less vetting paperwork, and priority callouts. Earning it usually requires meeting set safety, insurance, and performance benchmarks.
Heavy Civil
IndustryLarge-scale infrastructure construction involving earthworks, bridges, roads, and foundations. Subcontractors in this sector typically supply specialised equipment, civil crews, or concrete services. Contracts are often high-value but require significant bonding and insurance capacity.
In-Situ Repair
IndustryFixing or restoring equipment and structures at their installed location, without removal or shutdown. Subcontractors performing in-situ work often command premium rates due to specialised techniques and confined-space conditions. Scope clarity upfront is critical, as discovered defects can significantly expand the job.
OFS (Oilfield Field Services)
IndustryThe sector of companies and subcontractors that provide specialised labour, equipment, and technical services to oil and gas operators. This includes drilling, completions, maintenance, and production support work. Most field subcontractors operate within the OFS sector, working under Tier 1 service companies or directly for operators.
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.
Latest Industry News
Manufacturers Plan Nearly $2B in US Facility Investments This Fall
US Steel, USA Rare Earth, Array Technologies and four other manufacturers are pouring nearly $2 billion into new and expanded US facilities, creating fresh construction and skilled trade work across six states.
11 hours agoIndustryVenture Global Locks 20-Year China Gas SPA, Advances Plaquemines and CP2 Buildout
Venture Global signed a 20-year LNG supply deal with China Gas as its Plaquemines and CP2 projects clear regulatory and equipment milestones, signaling sustained Gulf Coast construction demand.
11 hours agoIndustryWood Lands $200M ExxonMobil Contract for PNG LNG Brownfield Work
Wood secured a five-year, $200 million construction services contract from ExxonMobil PNG covering brownfield work across the PNG LNG project's gas plants, pipelines, and well pads.
11 hours agoIndustryBaker Hughes Lands Compression, Liquefaction Orders for Venture Global's Gulf Coast Buildout
Baker Hughes secured orders to supply gas compression for the Cloud Connector Pipeline and modular liquefaction equipment for Plaquemines LNG, expanding Venture Global's Louisiana infrastructure footprint.
yesterdayRelated Guides
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.
Industry GuideHow 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.
Industry GuideWhat 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.
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