Under which contract is the drilling contractor paid by the number of feet or meters drilled?

Under which contract is the drilling contractor paid by the number of feet or meters drilled?

• A. Footage or metreage Contract
• B. Turnkey Contract
• C. Lump-sum Contract
• D. Daywork Contract

Answer: (A)

This question is about how drilling contracts determine payment based on output rather than time or fixed scope. A footage or metreage contract pays the driller a set rate for each unit drilled—feet or meters—so the total payment grows with the actual depth drilled. It ties compensation directly to the amount of drilling completed, unlike turnkey or lump-sum contracts that fix a price for delivering the whole project, or a daywork contract that pays based on time and materials.

This question is about how drilling contracts determine payment based on output rather than time or fixed scope. A footage or metreage contract pays the driller a set rate for each unit drilled—feet or meters—so the total payment grows with the actual depth drilled. It ties compensation directly to the amount of drilling completed, unlike turnkey or lump-sum contracts that fix a price for delivering the whole project, or a daywork contract that pays based on time and materials.