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IndustryGlossary Term

Strait of Hormuz

A critical shipping chokepoint between Oman and Iran controlling roughly 20% of global oil flow. Disruptions here can spike material costs and delay equipment deliveries for subcontractors. Budget contingencies and procurement timelines should account for geopolitical risk in this corridor.

Related Terms

Project Delivery Method

Industry

The contractual framework that determines how an owner, general contractor, and subcontractors are organised on a project. It directly affects when you get hired, who you report to, and how your scope is defined. Common methods include DBB (Design-Bid-Build), DB (Design-Build), and EPCM (Engineering, Procurement, and Construction Management).

CPF (Central Processing Facility)

Industry

A fixed surface facility where oil, gas, and water from multiple wells are separated, treated, and prepared for transport or sale. For subcontractors, a CPF is often a long-term, high-activity work site requiring trades, maintenance, and operations crews. Scope can include initial construction, commissioning, turnarounds, and ongoing maintenance contracts.

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.

Transit-Active Construction

Industry

A project phase where construction work is ongoing while equipment or materials are still in transit to the site. Subcontractors must coordinate mobilisation and scope carefully to avoid costly downtime waiting on delayed deliveries. Billing milestones and crew schedules should account for this overlap.

Self-Build

Industry

A project where the owner acts as their own general contractor, hiring subcontractors directly rather than through a prime contractor. For field service companies, this often means faster access to work but requires closer coordination with the owner. Payment terms and scope changes are negotiated directly, so clear contracts are essential.

Work Sequencing

Industry

The planned order in which tasks or scopes are completed on a job site. Subcontractors rely on sequencing to schedule crews, avoid downtime, and coordinate with other trades. Delays in sequencing often trigger cascading cost and scheduling impacts.

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