An LNTP (Limited Notice to Proceed) authorises subcontractors to begin a defined scope of work before the full contract is executed. It typically covers early mobilisation, procurement, or site prep activities up to a specified dollar limit. Work performed beyond that limit is at the subcontractor's own risk until full NTP is issued.
Limited Notice To Proceed
Related Terms
Hydrostatic Testing
IndustryA pressure integrity test where pipelines, vessels, or equipment are filled with water and pressurised to detect leaks or weaknesses. Subcontractors are often hired to perform or witness these tests before commissioning. Proper documentation is critical, as clients and regulators require certified test records.
CAPEX (Capital Expenditure)
IndustryFunds an operator spends on major assets like wells, pipelines, or facilities. High CAPEX cycles mean more subcontract opportunities for field crews and equipment providers. Low CAPEX periods often signal slower work volumes and tighter bid competition.
Debottleneck
IndustryTo identify and remove constraints limiting throughput or efficiency on a project or facility. For subcontractors, this often means mobilising additional crews or equipment to clear backlogs. Work is typically urgent and can command premium rates.
SPE (Society of Petroleum Engineers)
IndustryA global professional organisation that publishes technical standards, research, and best practices used across the oil and gas industry. Subcontractors may reference SPE papers and guidelines to meet operator technical requirements or bid on specialised work.
Crown Land Sale
IndustryA government auction where energy companies bid on licences to explore or develop publicly owned land. Winning bids signal upcoming drilling and field activity in that area. Subcontractors watch these sales to anticipate new work and mobilise resources early.
Suspension Order
IndustryA formal directive from a prime contractor or operator to halt work on a project temporarily. Subcontractors must stop billable activities but may still incur standby costs. Review your contract carefully, as suspension terms affect demobilisation, remobilisation, and delay compensation.
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