Oil Sands

A non-binding agreement outlining the intent to work together before a formal contract is signed. Subcontractors use MOUs to secure preferred vendor status or reserve capacity for upcoming projects. They carry no payment guarantee, so avoid mobilising resources based solely on an MOU.

A ground excavation method where holes are drilled into rock, then loaded with explosives and detonated. Subcontractors on these scopes typically require certified blasters and strict compliance with provincial explosives regulations. Expect tight sequencing with other trades and potential site shutdowns during blast windows.

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

Specialised metal used in pipelines and equipment exposed to corrosive fluids like H2S or CO2. Subcontractors must confirm material specs before welding or fabricating, as CRA requires certified procedures and qualified welders. Misidentifying CRA components can cause costly failures and compliance issues.

A major U.S. federal law passed in 2021 that funds roads, bridges, pipelines, and energy infrastructure projects. It drives significant contract opportunities for subcontractors in civil, pipeline, and utility work. Prevailing wage and Buy America requirements often apply, affecting labour costs and material sourcing.

The maximum volume of oil, gas, or fluids a facility can handle within a given timeframe. For subcontractors, it determines the pace and scale of your scope of work on site. Exceeding this limit causes bottlenecks that can delay schedules and trigger penalties.

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.