Development Sanction

When a subcontractor provides their own tools, equipment, or materials rather than relying on the prime contractor or client. This shifts procurement responsibility — and often cost risk — directly to your company. Pricing your bids correctly to recover these costs is critical.

A centralised owner or operator division that oversees large-scale capital projects and manages contractor relationships. Subcontractors typically submit bids, invoices, and compliance documents through the MPO rather than individual site teams. Knowing your MPO contact streamlines approvals, change orders, and payment processing.

All supporting systems and infrastructure outside the primary process equipment, such as electrical, piping, HVAC, and civil works. For subcontractors, BOP (Balance-of-Plant) scope often represents the bulk of awarded field labour. Knowing what falls under BOP helps avoid scope gaps and missed bid items.

Natural gas composed almost entirely of methane, with minimal liquid hydrocarbons. Subcontractors working dry gas sites face simpler handling requirements but often leaner margins than wet gas projects. Expect lighter equipment specs and fewer fluid management scopes.

A measure of annual production or throughput capacity at LNG, mining, or pipeline facilities. Subcontractors use it to gauge project scale and estimate long-term scope of maintenance or construction work. Higher MMtpa ratings typically signal larger crews, longer contracts, and more equipment requirements.

A closed vessel used to process materials in discrete, timed cycles rather than continuously. Subcontractors may be called to inspect, clean, or maintain these units during scheduled shutdowns. Work is typically project-based, tied to turnaround or maintenance contracts.

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.