An arrangement where a primary contractor hires an outside company to perform specialised work on a project. For subcontractors, this defines your position in the contracting chain and affects payment terms, liability, and site access. Knowing your tier level helps clarify who you invoice and who manages your compliance requirements.
Third-Party Contracting
Related Terms
RAP (Reclaimed Asphalt Pavement)
IndustryMilled or crushed material salvaged from existing asphalt surfaces during road removal or rehabilitation work. Subcontractors reuse RAP as base material or blend it into new asphalt mixes, reducing material costs. Proper handling and testing requirements may apply depending on project specs.
Acre-Feet
IndustryA volume measurement equal to one acre of surface area filled one foot deep, roughly 1,233 cubic metres. Common in water management contracts for tailings ponds, frac water storage, and site remediation. Subcontractors may be scoped and billed based on acre-feet of material moved or treated.
Shut-In Production
IndustryA well or facility that has been temporarily halted from producing oil or gas. For subcontractors, shut-ins often mean suspended work orders and delayed invoicing. Confirm contract terms around standby rates before production stops.
Run Schedule
IndustryA timeline that outlines when specific tools, equipment, or crews are deployed downhole or on-site during an operation, dictating when a subcontractor's services are required and for how long. For field service companies, the run schedule directly determines mobilisation timing, crew rotations, and invoiceable hours on location.
OFS (Oilfield Field Services)
IndustryThe sector of companies and subcontractors that provide specialised labour, equipment, and technical services to oil and gas operators. This includes drilling, completions, maintenance, and production support work. Most field subcontractors operate within the OFS sector, working under Tier 1 service companies or directly for operators.
Midstream
IndustryThe segment of the oil and gas industry involved in processing, storing, and transporting oil, gas, and NGLs. Includes pipelines, gathering systems, and processing plants.
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