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IndustryGlossary Term

Differing Site Conditions

Unexpected ground, soil, or subsurface conditions that differ materially from what the contract documents described. Subcontractors can use this clause to claim additional compensation or time when surprises drive up costs. Always document and notify the general contractor or owner immediately upon discovery.

Related Terms

Vacuum Excavation (vac-Ex)

Industry

A non-destructive digging method that uses high-pressure water or air to loosen soil, then suctions it into a debris tank. Subcontractors use it for safe excavation near buried utilities, pipelines, and cables. It is commonly required on oil and gas sites where mechanical digging poses strike risks.

Best-Value Scoring

Industry

A bid evaluation method where contractors are ranked on price plus non-price factors like safety record, experience, and equipment. Low bid alone does not win the work. Subcontractors must demonstrate overall capability, not just competitive rates.

Step-Out Drilling

Industry

Drilling wells at increasing distances from a proven discovery to test the boundaries of a reservoir. For subcontractors, it signals extended mobilisation cycles and potential new work corridors. Expect shifting logistics, camp requirements, and crew rotations as operators push further from existing infrastructure.

Working Interest

Industry

An ownership stake in an oil and gas lease that obligates the holder to pay a share of exploration and production costs. For subcontractors, knowing who holds working interest helps identify who is ultimately responsible for approving work orders and invoices. Operators typically hold majority working interest and are your primary point of contract.

ISNetworld

Industry

A contractor management platform used by operators to verify that subcontractors meet safety, insurance, and compliance requirements before being allowed to work on sites. Maintaining ISNetworld compliance is essential for subcontractors working with major operators.

Midstream

Industry

The segment of the oil and gas industry involved in processing, storing, and transporting oil, gas, and NGLs. Includes pipelines, gathering systems, and processing plants.

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