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ComplianceGlossary Term

API (American Petroleum Institute)

The leading industry organisation that develops technical standards, safety protocols, and equipment specifications that subcontractors must follow when working on oil and gas projects. API certifications and compliance with API standards are often mandatory requirements in service contracts and can affect your ability to bid on projects.

Related Terms

Hazard Elimination

Compliance

The highest level of hazard control, where a risk is completely removed from the worksite rather than managed. For subcontractors, this may mean redesigning a task or substituting dangerous equipment before mobilising crews. It is the preferred first step in any hierarchy of controls review.

Labour Law § 240 (scaffold Law)

Compliance

A New York State law holding property owners and general contractors strictly liable for gravity-related injuries on elevated worksites. As a subcontractor, you may share liability if you control the work where the injury occurs. Proper scaffold safety protocols and clear contract language are critical to managing your exposure.

FMCSA (Federal Motor Carrier Safety Administration)

Compliance

The U.S. federal agency regulating commercial trucking and transportation safety. Subcontractors hauling equipment across the border or operating in the U.S. must comply with FMCSA rules. This includes driver logs, vehicle inspections, and carrier registration requirements.

Hazard Recognition

Compliance

The ability to identify workplace dangers before work begins or conditions change. Subcontractors are often held responsible for recognising hazards on client-controlled worksites. Failure to document recognised hazards can create serious liability exposure.

Process Safety

Compliance

The discipline focused on preventing uncontrolled releases of hazardous materials or energy that could cause fires, explosions, or toxic events. Subcontractors working near pressurised systems or chemicals must understand site-specific process hazards before starting work. Non-compliance can result in immediate removal from site and liability exposure.

OECD (Organisation for Economic Co-operation and Development)

Compliance

An international body that sets economic and regulatory guidelines affecting oil and gas investment in member countries. Its anti-bribery and tax transparency standards directly impact how subcontractors operate on international projects. Companies working in OECD member nations must align procurement and invoicing practices with these standards.

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