A decision-making framework used to evaluate whether aging or damaged equipment should continue operating, be repaired, or be swapped out entirely. Subcontractors are often called in to assess assets and execute whichever option the client authorises. Understanding this process helps field crews scope work accurately and avoid scope creep on site.
Run/repair/replace
Related Terms
Hydraulic Fracturing
IndustryA well stimulation process where fluid is pumped at high pressure to crack subsurface rock and release oil or gas. Subcontractors are commonly engaged for pump operations, fluid handling, and equipment transport during frac campaigns. Work is often fast-paced and shift-intensive, with strict site access and safety requirements.
Modular Camp
IndustryA prefabricated, relocatable accommodation facility used to house workers on remote oil & gas or construction sites. Units are shipped and assembled on-site, then dismantled when the project ends. Subcontractors may bill camp costs separately or include them in their overall project pricing.
AFE (Authorization for Expenditure)
IndustryA budgeting document used in oil and gas projects that outlines expected costs and seeks approval before work begins. Subcontractors often work under AFEs issued by operators.
Turnkey
IndustryA contract where the subcontractor delivers a fully completed scope for a fixed price, assuming all cost and schedule risk. The client pays only upon project completion, not for time or materials spent. This model demands tight cost control, as overruns come directly out of your margin.
Paying Quantities
IndustryA legal threshold where a well produces enough oil or gas to justify continued operations and generate profit. For subcontractors, it determines whether a site stays active and whether ongoing service contracts remain in force. Loss of paying quantities can trigger contract suspension or early termination clauses.
SCADA (Supervisory Control and Data Acquisition)
IndustryA control system that monitors and manages field equipment like pipelines, compressors, and wellheads in real time. Subcontractors working on SCADA-connected sites must follow strict access and cybersecurity protocols. Your work may trigger automated alarms or shutdowns if procedures aren't followed precisely.
Latest Industry News
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The University of Mississippi has 170 construction projects running simultaneously across its Oxford campus, a live test case in staging and sequencing that facility-construction firms bidding higher-ed work should study closely.
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Construction Dive's weekly roundup shows Jacobs, Skanska, Brasfield & Gorrie and Granite Construction landing government infrastructure contracts worth over $300 million combined, offering fresh benchmarks for subs pricing similar public works scopes.
yesterdayRelated Guides
How Operator Mergers and Acquisitions Affect Your Subcontract Agreements
When operators merge, get acquired, or sell assets, subcontractor agreements are caught in the middle. Learn how M&A activity affects your MSA, payment terms, vendor status, and what to do before, during, and after a deal closes.
Industry GuideHow Rig Count Trends Affect Subcontractor Demand and What to Do About It
Rig counts are the earliest signal of where field service work is heading. Learn how to read drilling activity trends, anticipate demand shifts, and position your crew before the phone stops ringing.
Industry GuideWhat 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.
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