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ComplianceGlossary Term

Api 579-1/asme Ffs-1 (fitness-for-Service Standard)

A joint API/ASME standard used to assess whether ageing or damaged equipment is still safe to operate. Subcontractors may be required to conduct or support FFS assessments on pressure vessels, piping, and tanks. Results determine if equipment can stay in service, requires repair, or must be decommissioned.

Related Terms

Stop-Before-Strike

Compliance

A mandatory work pause requiring crews to verify no buried utilities or underground hazards exist before digging or drilling begins. Subcontractors are typically contractually responsible for completing all locates and documented checks before breaking ground. Failure to comply can void insurance coverage and expose your company to full liability for strikes.

Situational Awareness

Compliance

A worker's real-time understanding of hazards, personnel, and conditions on a job site. For subcontractors, it means knowing who is working nearby, what equipment is active, and how conditions are changing. Strong situational awareness reduces incidents and keeps crews aligned with the prime contractor's safety expectations.

Binding Arbitration

Compliance

A dispute resolution process where both parties agree to let a neutral third party make a final, legally enforceable decision. Subcontractors often encounter this clause in master service agreements with operators. Unlike court proceedings, the arbitrator's ruling cannot typically be appealed.

Safety-Sensitive

Compliance

A designation for positions where impairment could directly cause injury, death, or environmental harm. Common examples include equipment operators, riggers, and drivers. Workers in these roles are typically subject to mandatory drug and alcohol testing under client and regulatory requirements.

Procedure Drift

Compliance

The gradual deviation from approved work methods or safety protocols, often through small, unnoticed shortcuts. For subcontractors, it creates serious liability exposure during audits or incident investigations. Clients may withhold payment or terminate contracts if drift is found during site inspections.

Indemnification

Compliance

A contractual obligation where one party agrees to cover another's losses, claims, or legal costs. For subcontractors, indemnification clauses often require you to absorb liability even for an operator's own negligence. Always have legal counsel review these clauses before signing.

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