A project delivery model where one firm manages engineering, procurement, and construction on the owner's behalf. Subcontractors are hired directly by the owner, not the EPCM firm. Understanding this structure clarifies your contract chain, payment authority, and site reporting lines.
EPCM (Engineering, Procurement, Construction Management)
Related Terms
Screen Media
IndustryThe replaceable filtering surfaces installed in vibratory shakers and separators on drilling and processing sites. Types include wire mesh, polyurethane, and rubber panels, each suited to different material grades. Subcontractors are often responsible for sourcing, swapping, and disposing of worn screen media during operations.
Land Block
IndustryA 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.
Paying Quantities
IndustryA legal threshold where a well produces enough oil or gas to justify continued operations and generate profit. For subcontractors, it determines whether a site stays active and whether ongoing service contracts remain in force. Loss of paying quantities can trigger contract suspension or early termination clauses.
Primary Term
IndustryThe 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.
Tank Battery
IndustryA group of storage tanks at a well site that collect and separate oil, gas, and water from production. Subcontractors are frequently mobilised here for gauging, maintenance, and fluid handling work. It is a common recurring service location on producing leases.
Shale Basin
IndustryA large geographic region containing shale rock formations targeted for oil and gas extraction through horizontal drilling and hydraulic fracturing. For subcontractors, shale basins like the Montney or Duvernay represent high-volume, multi-year work corridors. Expect cyclical demand, remote mobilisation, and repeat frac and completions contracts.
Latest Industry News
Jacobs Lands Expanded EPCM Role on Hut 8's 1-GW AI Campus in South Texas
Jacobs has secured a sole-source EPCM contract for Hut 8's Beacon Point AI data center campus in Nueces County, Texas, a multi-phase project designed to support up to 1 GW of utility capacity with a lead tenant lease valued at $9.8 billion over its base term.
20 hours ago IndustryBC Premier Pushes for LNG Canada Phase 2 Decision by Year-End
British Columbia Premier David Eby is publicly backing a final investment decision on LNG Canada's Phase 2 expansion in Kitimat this year, signaling a significant political shift in the province toward supporting gas export infrastructure.
20 hours ago IndustryCommonwealth LNG Takes Final Investment Decision on $13 Billion Louisiana Export Facility
Commonwealth LNG has approved construction of a $13 billion liquefied natural gas export terminal in Cameron Parish, Louisiana, backed by Kimmeridge, Mubadala Energy, and Canada Pension Plan Investment Board, with operations targeted for 2030.
20 hours ago IndustryFerrovial-Webber Joint Venture Lands $1.47B Grand Parkway Contract Southeast of Houston
TxDOT has selected a Ferrovial Construction-Webber joint venture to design, build, and maintain a nearly 15-mile tolled extension of SH 99, with the $1.47B contract covering new lanes, frontage roads, and SH 35 upgrades through Brazoria and Galveston counties.
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