Who This Checklist is For
If you're an office administrator, procurement coordinator, or operations manager responsible for ordering oilfield services—drilling fluids, solids control, well completion gear, or even just trucking—this is for you. I manage these relationships daily. Processing 60-80 orders annually, across 8 different vendors, for about $1.5M in total spend. This checklist is what I use to not get burned.
Here are the six steps I follow before I sign off on any new vendor.
Step 1: Verify Their Core Capability (Don't Be Blinded by the 'One-Stop Shop' Pitch)
I've learned this the hard way. When a sales rep says, 'We can handle everything from drilling fluids to completion tools,' my first question is always: 'What's the one thing you do best?' The vendor who said, 'Honestly, our solids control is top-tier, but we partner with a specialist for the downhole tools'—that guy earned my trust. The one who promised everything delivered mediocre results on both.
Checkpoint: Ask for the top three projects they've done in the specific service you need. Not their company's best projects—for that specific service. If they can't rattle them off, they're not the specialist you need.
Step 2: Confirm Their Invoicing & Compliance Setup (The $2,400 Mistake)
I still kick myself for this one. In 2023, I found a great price on a specialized chemical from a new vendor—$15,000 cheaper than our regular supplier. Ordered 10 drums. They delivered on time, but their invoice was a handwritten receipt. Finance rejected it. I ate the cost out of the department budget. That's $2,400 out of my Ops budget for a mistake I should've caught upfront.
Checkpoint: Before the first PO, ask for a sample invoice. Does it have a proper PO number field? Vendor tax ID? Clear line items? If they can't produce a professional invoice, they won't be able to work with your finance department.
Step 3: Check Their Safety & Compliance Paperwork (Before They Step on Site)
Per OSHA and most major operators (see: IADC safety guidelines, effective 2024), every vendor on site needs current safety training, insurance certificates, and a HSE plan. I've had a vendor show up with expired safety tickets—cost us a day of rig time while they sorted it out.
Checkpoint: Request a copy of their COI (Certificate of Insurance) and their most recent safety audit. Look for the effective dates. Don't just accept a PDF—verify the issuing agency's contact info. As of January 2025, most large operators require at least $5M in general liability.
Step 4: Test Their Communication (The '3 Email' Rule)
How a vendor handles a routine inquiry tells you everything about how they'll handle an emergency.
After the frustrating third late delivery from a vendor in 2022—they kept saying 'it's on the truck' when it wasn't—I developed this rule: Send three emails over a week. A pricing request, a scheduling change, and a follow-up question about a piece of equipment. Track response time and clarity.
Checkpoint: A good vendor replies within 24 hours to a pricing request, acknowledges the scheduling change immediately, and answers the equipment question in detail. One who takes 3 days or gives vague answers will cost you sleep later.
Step 5: Ask for References (But Call the Right Person)
Every vendor gives you three glowing references. I call them—but I specifically ask to speak to the person who handles the invoices or the logistics coordinator. Not the project manager. The admin buyer on their end knows the truth: Did they pay on time? Were the deliveries accurate? Did they cause any administrative headaches?
Checkpoint: Ask the reference: 'Out of 10 orders, how many had a paperwork error?' If it's more than 1 or 2, that's a red flag. My experience from about 200 mid-range orders suggests that a 5-10% paperwork error rate is the max I can tolerate before it eats my time.
Step 6: Negotiate the Payment Terms (Before You Commit)
Standard net-30 is fine. But I've seen vendors try to push net-15 or even demand upfront payment for 'custom' equipment. I'm not a bank. If they need cash flow that badly, it's a risk.
Checkpoint: Confirm payment terms in writing. And ask: 'Do you offer a discount for early payment?' Many vendors will give you 2/10 net 30 (2% off if paid within 10 days). That's real money on a $50,000 service order.
Common Mistakes I Still See
- Only checking price. Cheapest vendor often has the worst invoicing or safety compliance. The cost of fixing those issues can be more than the savings.
- Trusting verbal promises. I've had a vendor promise a delivery date, then blame the 'supply chain.' Document everything in the PO or a follow-up email.
- Ignoring the 'fit' factor. A vendor who constantly challenges your process will drain your energy. A vendor who respects your internal workflows is worth paying a premium for.
My experience is based on about 200 mid-range orders with U.S.-based oilfield service vendors. If you're working with international suppliers or large national oil companies, your process might differ. I can't speak to that segment.
One of my biggest regrets: not building in buffer time for first-time vendors. I assumed—wrongly—that their quoted lead time was real. Now I add a 20% buffer on the schedule for any vendor I've never worked with. That saved my hide in Q3 2024 when a new fluids vendor ran two weeks late on a critical delivery.
Prices as of January 2025; verify current rates. Regulatory info per IADC and OSHA guidelines; verify current requirements at the respective official sources.