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Compliance Glossary 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

Osha (occupational Safety and Health Administration) Variance

Compliance

A formal permit allowing a subcontractor to use an alternative method that differs from a standard OSHA regulation. It is granted when the alternative provides equal or greater worker protection. Subcontractors must apply directly and remain compliant with all variance conditions during field operations.

Approved Vendor List

Compliance

A client- or prime contractor-maintained registry of pre-qualified suppliers and subcontractors eligible to bid on work. Getting onto an AVL often requires submitting safety records, insurance, and certifications in advance. Without AVL status, subcontractors are typically blocked from receiving purchase orders or contracts.

Heat Illness

Compliance

A range of conditions caused by overexposure to heat, from heat cramps and exhaustion to life-threatening heat stroke. Subcontractors working outdoor or industrial sites must monitor crew members and follow site heat stress protocols. Failing to manage heat illness risks can trigger regulatory violations and project shutdowns.

CMMC (Cybersecurity Maturity Model Certification)

Compliance

A U.S. Department of Defence framework requiring contractors to meet specific cybersecurity standards before bidding on federal contracts. For field subcontractors, it means your digital systems, devices, and data handling practices must pass a formal audit. Without certification, you may be disqualified from certain government-linked oil and gas or construction projects.

Federal Impact Assessment

Compliance

A government review process evaluating environmental and social effects of major projects under the Impact Assessment Act. Subcontractors may face delayed mobilisation or scope changes while projects await federal approval. Understanding timelines helps field crews plan resources and avoid costly standby situations.

Environmental Permitting

Compliance

The process of obtaining government approvals before starting work that may impact land, water, or air. Subcontractors must confirm permits are in place before mobilising — delays can halt work without pay. Missing or expired permits can expose your company to fines and contract termination.

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