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IndustryGlossary Term

Project Alliance Agreement

A contract where the owner, main contractor, and subcontractors share project risks and rewards collectively. Payment is tied to overall project outcomes rather than individual scope performance. Subcontractors must track costs carefully, as savings and overruns are distributed across all alliance members.

Related Terms

Instrumentation

Industry

The installation, calibration, and maintenance of measurement and control devices such as gauges, transmitters, and sensors. Subcontractors are often scoped specifically for instrumentation work, requiring certified trades and precise documentation. It is a common standalone discipline on large oil and gas and industrial construction projects.

Oil Battery

Industry

A surface facility that receives, separates, measures, and stores crude oil from multiple wells. Subcontractors frequently work at batteries for maintenance, instrumentation, and tank servicing. It is a common site for ongoing field service scopes.

RNG (Renewable Natural Gas)

Industry

Biogas captured from landfills, agriculture, or wastewater and upgraded to pipeline-quality fuel. Subcontractors may encounter RNG projects as producers expand capture and processing infrastructure. Field work includes installation of compression, purification, and injection equipment.

Lithium-Bearing Brine

Industry

Subsurface saltwater containing dissolved lithium, extracted from formations during drilling or dedicated mining operations. Subcontractors may encounter it on fluid handling, well servicing, or evaporation pond construction contracts. Demand for lithium is driving new project activity across western Canada and the Prairies.

Aeroderivative Turbine

Industry

A lightweight gas turbine adapted from jet engine technology, used for power generation and compression on oil and gas sites. Subcontractors are often called in for maintenance, hot-section inspections, and component exchanges. These units start up quickly and are common on remote or temporary installations.

DUC (Drilled-but-uncompleted Well)

Industry

A well that has been drilled but is awaiting completion work such as fracturing, perforating, or production tie-in. Operators stockpile DUCs when commodity prices are low, then activate them when prices recover. For subcontractors, a large DUC inventory signals upcoming bursts of completion and surface work.

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