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ComplianceGlossary Term

Arbitration

A private dispute resolution process where a neutral third party settles contract disagreements outside of court. Subcontractors often encounter arbitration clauses in master service agreements. It can limit your right to sue a prime contractor or operator directly.

Related Terms

RRC (Railroad Commission of Texas)

Compliance

Texas state agency that regulates oil, gas, and pipeline operations. Subcontractors working in Texas must comply with RRC permits, well plugging rules, and environmental requirements. Non-compliance can result in fines or loss of operating authority.

Firewatch

Compliance

A designated worker assigned to monitor for fire or sparks during and after hot work operations like welding or grinding. Subcontractors are often required to supply certified firewatchers as a condition of their work permit. This role carries direct liability, so confirm scope and duration with the prime contractor before mobilising.

Customs Broker

Compliance

A licensed intermediary who handles import and export paperwork for equipment and materials crossing international borders. Subcontractors moving tools or machinery into Canada or the U.S. often hire one to avoid costly delays. They ensure duties, tariffs, and compliance documents are filed correctly.

Carbon Pricing

Compliance

A government-imposed cost on greenhouse gas emissions, typically applied per tonne of CO2 equivalent. Subcontractors may face carbon charges on fuel, equipment operation, and fleet usage. These costs can affect project bids and operating margins if not factored into quotes.

Utility Excavation

Compliance

The process of digging near existing underground infrastructure such as gas lines, electrical conduits, or water mains. Subcontractors must locate and expose utilities safely before major earthworks begin. Requires ground disturbance permits and adherence to provincial Dig Safe or Click Before You Dig protocols.

PSM (Process Safety Management)

Compliance

A regulatory framework governing hazardous process facilities like refineries and gas plants. Subcontractors working on-site must comply with the operator's PSM programme, including hazard reviews and safe work permits. Non-compliance can result in immediate removal from site.

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