Hydrovac

The horizontal section of a directionally drilled well, extending sideways through the target formation. Laterals can stretch several kilometres, requiring extended crew mobilisations and staged service scopes. Subcontractors should clarify lateral length upfront, as it directly affects equipment needs and job duration.

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 company hired by a general contractor or directly by an operator to perform a specific portion of work. Subcontractors often specialize in particular services or trades.

Expedited delivery service for equipment, parts, or materials to remote job sites. Often used for urgent oilfield deliveries.

A safety and compliance management system used by some operators to pre-qualify and manage contractors working on their sites.

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.