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Daily oil & gas and construction news for subcontractors

IndustryGlossary 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

Thermal In-Situ

Industry

A method of extracting heavy oil or bitumen by injecting steam underground to heat and mobilise the resource. Common techniques include SAGD (Steam Assisted Gravity Drainage) and CSS (Cyclic Steam Stimulation). Subcontractors support these operations through facility construction, pipefitting, instrumentation, and ongoing maintenance work.

Surface Miner

Industry

A large self-propelled machine that cuts, crushes, and loads material in a single pass without blasting. Subcontractors operating surface miners must hold specialised equipment certifications and follow strict site safety protocols. Common in oil sands and open-pit construction projects across Western Canada.

Spud Date

Industry

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

Cold Milling

Industry

A surface removal process where a rotating drum grinds down asphalt or concrete without heat. Subcontractors use it for road rehabilitation, pad preparation, and surface levelling on well sites or construction projects. Reclaimed material is often reused, reducing disposal costs.

Caustic Service

Industry

Work involving equipment or piping that handles highly alkaline chemicals, such as sodium hydroxide. Subcontractors must use compatible materials and certified personnel to avoid rapid corrosion and serious chemical burns. Specialised PPE and handling procedures are typically required by the client's safety plan.

Npv10 (net Present Value At 10% Discount Rate)

Industry

A method operators use to value oil and gas reserves by discounting future cash flows at 10% annually. Higher NPV10 signals a healthier client who can fund long-term projects and honour contracts. Subcontractors can use it to gauge whether a prospect client's asset base justifies pursuing work with them.

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