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IndustryGlossary Term

Turnkey

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.

Related Terms

In-Situ

Industry

Work performed on-site without removing equipment or materials from their installed position. Subcontractors are often mobilised specifically for in-situ repairs, inspections, or testing. Scope and billing should clearly reflect the fixed work location.

Net Hydrocarbon Pay

Industry

The thickness of a reservoir zone that actually contains producible oil or gas. Operators use this measurement to justify well completions and production decisions. Higher net pay typically drives more field service activity, from perforating to stimulation work.

Exploration Well

Industry

A well drilled in an unproven or lightly tested area to determine whether hydrocarbons are present, often representing shorter-term, high-mobilisation contracts for subcontractors with less predictable follow-on work than development drilling programmes.

Bcf/d (billion Cubic Feet Per Day)

Industry

A measure of natural gas production or pipeline throughput volume. Higher BCF/d figures on a project typically signal larger-scale operations requiring more field crews and equipment. Subcontractors can use this metric to gauge the scope and duration of potential work.

Preconstruction

Industry

The planning phase before field work begins, covering scope review, site assessments, and schedule alignment with the GC. Subcontractors are often engaged during this phase to provide pricing, labour forecasts, and constructability input. Early involvement can improve mobilisation timelines and reduce costly scope changes later.

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).

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