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
Phase Gate
IndustryA formal approval checkpoint where a project must meet defined criteria before work advances to the next stage. Subcontractors often cannot mobilise, invoice, or begin new scope until the client clears each gate. Delays at phase gates directly impact crew scheduling and cash flow.
PAC (Polyanionic Cellulose)
IndustryA water-soluble polymer additive used in drilling fluids to control fluid loss and stabilise boreholes. Subcontractors handling mud systems must store and mix PAC carefully, as improper use affects drilling performance. It is commonly specified in drilling programmes, so field crews should follow the mud engineer's exact dosage instructions.
VFD (Variable Frequency Drive)
IndustryAn electronic device that controls motor speed by adjusting electrical frequency, commonly found on pumps, compressors, and fans at oil and gas facilities. Subcontractors working near VFDs must follow strict electrical isolation and lockout/tagout procedures. Technicians servicing VFDs typically require specialised training and may need additional site certifications.
Utility-Scale Storage
IndustryLarge battery or energy storage systems that supply power to grids or remote job sites. For subcontractors, these projects involve specialised electrical, civil, and commissioning crews. Work often includes foundation pours, equipment installation, and grid tie-in under strict utility standards.
FSU (Floating Storage Unit)
IndustryA moored vessel used solely to store crude oil or LNG offshore, without production capabilities. Subcontractors are engaged for inspection, maintenance, and marine support work aboard these assets. Mobilisation logistics and offshore safety certifications are typically required before access is granted.
Inversion (pipe Lining)
IndustryA trenchless pipe rehabilitation method where a resin-saturated liner is turned inside-out into an existing pipe using water or air pressure. The liner cures in place, forming a new pipe within the old one. Subcontractors are typically scoped for setup, inversion equipment operation, and post-cure inspection.
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.
2 months agoIndustry5,700-Ft HDPE Pullback Under James River Resets Long-Bore Benchmark
Garney's team pulled 42-in HDPE 5,700 ft beneath the Newport News Shipping Channel, a claimed record for that pipe size and wall thickness. Here is what HDD and marine subs can take from it.
20 hours agoIndustryCalifornia Data Center Electrical Rooms Face Two Confined-Space Rules
Federal OSHA 1926.1203 and California's Title 8 confined space standard both apply to Bay Area data center electrical rooms, and one doesn't satisfy the other. Electrical and mechanical subs should plan for surveys, rescue plans and training before mobilizing.
20 hours agoIndustryEmera to Acquire Canadian Utilities in $72B Merger of Equals
Emera and Canadian Utilities plan to merge into a $72 billion utility with six million customers. Alberta and Florida would drive about 80% of earnings, but no project or bid stage exists yet.
20 hours agoRelated Guides
How Operator Mergers and Acquisitions Affect Your Subcontract Agreements
When operators merge, get acquired, or sell assets, subcontractor agreements are caught in the middle. Learn how M&A activity affects your MSA, payment terms, vendor status, and what to do before, during, and after a deal closes.
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.
Industry GuideWhat Is an AFE in Oil and Gas and How Does It Affect Subcontractor Payments?
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.
Stay sharp on field operations
Industry news and insights, delivered to your inbox.
Subscribe to FieldNews
