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IndustryGlossary Term

Throughput Capacity

The maximum volume of work, materials, or product a crew or operation can process within a given timeframe. For subcontractors, it determines how many jobs or units can be delivered without bottlenecks. Knowing your throughput capacity helps with accurate bidding and resource planning.

Related Terms

Pipeline Commissioning

Industry

The final phase of pipeline construction where systems are tested, cleaned, and activated before handover to the operator. Subcontractors are often mobilised for hydrotesting, pigging, and tie-in work during this stage. Scope can expand quickly, so track change orders closely.

Grid Interconnection

Industry

The process of connecting a power generation asset to the public electrical grid. For subcontractors, it triggers specific commissioning milestones, inspections, and sign-offs. Delays in interconnection approval can directly impact project timelines and invoicing.

Geosteering

Industry

The real-time technique of guiding a drill bit through a target formation using geological data. Subcontractors supporting drilling operations may be called in on short notice as geosteering decisions change well paths. Expect scope adjustments and rapid crew or equipment mobilisation when geosteering is active.

Primary Term

Industry

The fixed initial period of a service contract during which either party is typically locked in. For subcontractors, it sets the guaranteed window to recover mobilisation costs and generate revenue. Work orders or rates often cannot be renegotiated until this period expires.

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).

NOC (National Oil Company)

Industry

A state-owned oil producer that controls exploration and production within its country. NOCs often require local content compliance, affecting subcontractor hiring and procurement. Payment cycles and approval chains can be longer than with private operators.

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