A risk-based inspection standard used on oil and gas facilities to prioritise equipment checks by failure likelihood and consequence. Subcontractors may need to align their inspection scopes and documentation to meet API 580 requirements on client sites.
Api 580 (american Petroleum Institute Standard 580)
Related Terms
OFCCP (Office of Federal Contract Compliance Programs)
ComplianceA U.S. federal agency enforcing equal employment rules for companies working on federal contracts. Subcontractors on U.S. federal projects must meet hiring and anti-discrimination requirements. Non-compliance can result in contract termination or debarment from future federal work.
Osha (occupational Safety and Health Administration) Variance
ComplianceA 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.
Stand Down
ComplianceA directive to halt all work on-site, issued by the prime contractor or owner — most often to address an immediate safety concern or incident. Crews stop billable activities until the issue is resolved and a formal all-clear is issued; depending on contract terms, standby rates may or may not apply. Stand downs can be site-wide or scoped to a specific trade or work area.
High-Energy Hazard
ComplianceAny source of stored or released energy that can cause serious injury or death, such as pressurised systems, suspended loads, or live electrical equipment. Subcontractors must identify these hazards before starting work and follow site-specific isolation procedures. Failure to control high-energy hazards is a leading cause of fatalities in oil and gas and construction environments.
Heat Illness
ComplianceA 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.
BOEM (Bureau of Ocean Energy Management)
ComplianceThe U.S. federal agency overseeing offshore energy leasing on the Outer Continental Shelf. Subcontractors working U.S. offshore projects must meet BOEM-driven compliance requirements set by their prime contractors. Permits and operational approvals from BOEM directly affect project timelines and mobilisation schedules.
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