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.
LOI (Letter of Intent)
Related Terms
Cold-Milled Asphalt
IndustryReclaimed pavement material produced by grinding existing asphalt surfaces without heat. Subcontractors encounter it during road restoration work on well pads, pipeline rights-of-way, and industrial sites. It is commonly reused as base material, reducing disposal costs and material haul-off requirements.
Mmcf/d (million Cubic Feet Per Day)
IndustryA measurement of natural gas production or flow volume, used to describe the output capacity of a well, pipeline, or facility. Subcontractors use this figure to gauge job scale, equipment sizing, and crew requirements. Higher MMcf/d ratings typically signal larger scopes of work and longer contract durations.
Caustic Service
IndustryWork involving equipment or piping that handles highly alkaline chemicals, such as sodium hydroxide. Subcontractors must use compatible materials and certified personnel to avoid rapid corrosion and serious chemical burns. Specialised PPE and handling procedures are typically required by the client's safety plan.
In-Situ
IndustryWork performed on-site without removing equipment or materials from their installed position. Subcontractors are often mobilised specifically for in-situ repairs, inspections, or testing. Scope and billing should clearly reflect the fixed work location.
Long-Lead Items
IndustryEquipment or materials requiring extended procurement timelines, often months ahead of project start. Subcontractors must identify these early to avoid costly schedule delays. Late orders can stall mobilisation and trigger liquidated damages clauses.
Force Majeure
IndustryA contract clause that excuses a party from performing obligations due to extraordinary events beyond their control, such as natural disasters or pandemics. For subcontractors, it can mean suspended work orders without compensation. Always review how your prime contract defines triggering events before signing.
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