A fixed-price agreement where the subcontractor delivers a fully completed scope of work for a set sum. You absorb all cost overruns, so accurate estimating and tight cost control are critical. Profit or loss depends entirely on how well you manage execution against your original bid.
Turnkey Contract
Related Terms
Well Abandonment
IndustryThe regulated process of permanently sealing and decommissioning a well at end of life. For subcontractors, it generates specialised scope including cementing, wellhead removal, and site reclamation work. Abandonment projects are often time-sensitive due to regulatory deadlines and operator liability pressure.
Step-Out Drilling
IndustryDrilling wells at increasing distances from a proven discovery to test the boundaries of a reservoir. For subcontractors, it signals extended mobilisation cycles and potential new work corridors. Expect shifting logistics, camp requirements, and crew rotations as operators push further from existing infrastructure.
Reservoir Characterization
IndustryThe process of mapping and analysing an underground reservoir's size, rock properties, and fluid content. Subcontractors use this data to understand scope for drilling, completions, and intervention work. It directly influences crew requirements, equipment specs, and contract duration.
Lateral (well)
IndustryThe horizontal section of a directionally drilled well, extending sideways through the target formation. Laterals can stretch several kilometres, requiring extended crew mobilisations and staged service scopes. Subcontractors should clarify lateral length upfront, as it directly affects equipment needs and job duration.
TVD (True Vertical Depth)
IndustryThe straight-line vertical distance from surface to a specific point in a wellbore, regardless of how the well is drilled — subcontractors working on directional or horizontal wells need to reference TVD (not measured depth) when scoping equipment reach, calculating hydrostatic pressures, or verifying work zone depths on service orders.
Cold Milling
IndustryA surface removal process where a rotating drum grinds down asphalt or concrete without heat. Subcontractors use it for road rehabilitation, pad preparation, and surface levelling on well sites or construction projects. Reclaimed material is often reused, reducing disposal costs.
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