Heavy Crude

A written commitment from a client indicating they plan to award a subcontractor a contract. It allows work or mobilisation to begin before the formal contract is signed. LOIs are not always legally binding, so subcontractors should clarify payment obligations before proceeding.

A single, unplanned service request dispatched to a subcontractor or field technician outside of scheduled work. Each call-out is typically logged as a discrete billable event. Subcontractors often charge a flat call-out fee plus time and materials.

Electrical equipment used to control, protect, and isolate power systems on job sites. Subcontractors working near switchgear must follow strict lockout/tagout procedures. Installation and maintenance work often requires certified electricians and site-specific safety permits.

A structural shell installed inside a bored tunnel to support surrounding soil or rock and maintain bore integrity. Subcontractors installing liners must meet strict tolerances and inspection hold points. Work is often sequenced tightly with boring crews, requiring close schedule coordination.

The shift from diesel-powered trucks and equipment to electric or hybrid alternatives on job sites and haul routes. For subcontractors, this affects fleet investment decisions, charging infrastructure needs, and site logistics. Some client contracts now require or incentivise electrified transport to meet emissions targets.

The maximum electrical output a power generation unit can reliably produce, measured in kilowatts or megawatts. For field crews, it determines whether on-site generators can handle equipment loads at remote worksites. Subcontractors must verify capacity before mobilising power-intensive tools or machinery.

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.