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Industry Glossary Term

Lower-Tier Subcontractor

Related Terms

Run-Life

Industry

The expected operational lifespan of a downhole tool or piece of equipment before it requires servicing or replacement. For subcontractors, run-life directly affects rental billing cycles, maintenance scheduling, and equipment mobilisation costs. Shorter run-lives can erode margins if replacement or redress costs aren't priced into the contract.

FID (Final Investment Decision)

Industry

The point when a project owner formally approves funding and commits to proceeding with a major project. For subcontractors, FID is the trigger that converts preliminary work into confirmed scopes and purchase orders. Mobilisation planning, crew hiring, and equipment sourcing typically begin after FID is announced.

Behind-The-Meter

Industry

Refers to power generation or energy systems located on a client's side of the utility connection point. For subcontractors, this often means working on site-owned generators, solar arrays, or battery storage on industrial or remote worksites. Scopes here fall outside utility jurisdiction, affecting permitting and inspection requirements.

Triple Drilling Rig

Industry

A large land rig capable of drilling deep wells, typically over 5,000 metres. It requires specialised subcontractors and larger crews than smaller single or double rigs. Expect higher equipment and certification requirements when bidding on triple rig projects.

Remote-Site Services

Industry

Work performed at isolated locations far from urban centres, such as camps, wellsites, or pipeline corridors. Subcontractors must self-manage logistics, including equipment, consumables, and crew rotations. Mobilisation costs and travel time significantly affect how contracts should be priced.

Energy Storage

Industry

Systems that capture and hold power (batteries, flywheels, capacitors) for later use on remote or off-grid job sites. Subcontractors use them to reduce generator runtime and fuel costs. They are increasingly specified by clients in ESG-driven scopes.

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