A 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.
Turnkey
Related Terms
Full Displacement Pile
IndustryA foundation pile driven or screwed into soil without removing material, pushing ground laterally to create a tight fit. Common in oil and gas facility and construction site foundations. Subcontractors should confirm soil displacement specs early, as ground conditions directly affect equipment selection and crew scheduling.
Plugged and Abandoned
IndustryA well that has been permanently sealed with cement and decommissioned. For subcontractors, P&A work is a distinct scope involving abandonment crews, specialised equipment, and regulatory sign-off. Invoicing and mobilisation terms should be confirmed before work begins, as these projects are often time-sensitive.
Tidal-Water Export Terminal
IndustryA coastal or estuary facility where bulk commodities like LNG or crude oil are loaded onto marine vessels for export. Water depth fluctuates with tides, affecting vessel scheduling and your crew's access windows. Subcontractors must plan shifts and equipment mobilisation around tide tables and vessel berthing schedules.
Balance-Of-Plant
IndustryAll supporting systems and infrastructure outside the primary process equipment, such as electrical, piping, HVAC, and civil works. For subcontractors, BOP (Balance-of-Plant) scope often represents the bulk of awarded field labour. Knowing what falls under BOP helps avoid scope gaps and missed bid items.
Compression Station
IndustryA facility that boosts natural gas pressure to move it through pipelines over long distances. Subcontractors are frequently mobilised here for maintenance, mechanical work, and equipment inspections. These sites often require specific safety certifications and site orientations before work begins.
Sole-Source Contract
IndustryA contract awarded directly to one subcontractor without a competitive bidding process. Operators use this when your firm has specialised expertise, proprietary equipment, or an urgent mobilisation is required. It can mean faster contract execution but often comes with tighter scope and pricing scrutiny.
Latest Industry News
Halliburton Lands Aramco Deal for 285-Well Onshore Program in Saudi Arabia
Halliburton secured multi-year lump sum turnkey contracts from Aramco covering 285 wells in Saudi Arabia, spanning oil re-entry, drilling, completions and workovers, World Oil reports.
14 days agoIndustryBechtel Wins EPC Contract for Sabine Pass LNG Train 7 Expansion
Cheniere Energy Partners has executed a lump-sum turnkey EPC contract with Bechtel for Phase 1 of the Sabine Pass LNG Expansion Project, adding a new liquefaction train in Cameron Parish, Louisiana.
2 months agoIndustryAecon-Led Group With First Nations Partners Signs Deal for Ontario BESS Project
Aecon Concessions and four First Nations and energy partners have signed a 20-year storage agreement with Ontario's IESO to build a 150 MW/1,200 MWh battery project in Norfolk County, targeting 2030 commercial operations.
20 hours agoIndustryAthabasca Spends $55M on Corner SAGD Prep, Holds Off Final Sanction
Athabasca Oil Corp is putting $55 million into site prep and engineering for Corner Phase 1 SAGD but has not yet issued a formal sanction, Oil Sands Magazine reports, as it awaits clarity on Alberta's fiscal framework.
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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.
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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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