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Industry Glossary Term

Construction Manager At Risk

A delivery model where a construction manager guarantees a maximum project cost and takes on financial risk if it's exceeded. Subcontractors are hired by the CM, not the owner, making the CM your direct client and contract holder. Your scope, payments, and change orders all flow through the CM.

Related Terms

Primary Term

Industry

The fixed initial period of a service contract during which either party is typically locked in. For subcontractors, it sets the guaranteed window to recover mobilisation costs and generate revenue. Work orders or rates often cannot be renegotiated until this period expires.

Mud Reclaimer

Industry

A piece of solids-control equipment that separates reusable drilling fluid from cuttings on the rig site. Subcontractors operating or maintaining this unit help reduce fluid disposal costs and waste volumes. It is commonly found in directional drilling and HDD (Horizontal Directional Drilling) scopes.

Land Block

Industry

A designated area of Crown or freehold land divided for exploration and production rights. Subcontractors often mobilise crews and equipment according to which land blocks an operator holds active licences for. Work scopes, access agreements, and surface rights are typically tied to specific block boundaries.

Rotary Rig Count

Industry

A weekly tally of active drilling rigs operating across a region, published by companies like Baker Hughes. Subcontractors use it to gauge market demand and anticipate work volumes. A rising count typically signals increased opportunities for drilling-related field services.

Spud Date

Industry

The date when drilling begins on a new well. Marks the start of drilling operations.

Chokepoint

Industry

A stage in a project where workflow bottlenecks, delaying downstream tasks and crew productivity. For subcontractors, chokepoints often occur at inspection holds, permit approvals, or material deliveries. Identifying them early helps protect schedule and avoid costly standby time.

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