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IndustryGlossary Term

Turnkey Contract

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.

Related Terms

Phase Gate

Industry

A 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)

Industry

A 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)

Industry

An 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

Industry

Large 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)

Industry

A 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)

Industry

A 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.

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