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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.

A system used to boost production from oil wells that lack sufficient natural pressure to bring fluids to surface. Common methods include rod pumps, ESPs (Electric Submersible Pumps), and gas lift. Subcontractors are often mobilised to install, service, or troubleshoot these systems throughout a well's producing life.

A budgeting document used in oil and gas projects that outlines expected costs and seeks approval before work begins. Subcontractors often work under AFEs issued by operators.

A mobile offshore drilling rig with retractable legs that jack down to the seabed, elevating the platform above water. Subcontractors mobilising to a jackup must account for offshore certification, marine logistics, and platform-specific access requirements.

The number of drilling rigs actively operating in a region. Published weekly by Baker Hughes, the rig count is a leading indicator of activity levels in the oil and gas industry.

The company that holds the rights to develop an oil and gas property and manages day-to-day operations. Operators hire subcontractors and service companies to perform various tasks.

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.