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Compliance Glossary 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

EHS (Environment, Health, and Safety)

Compliance

A framework governing how subcontractors manage workplace hazards, environmental risks, and worker wellbeing on job sites. Most operators require subcontractors to meet specific EHS standards before awarding contracts. Non-compliance can result in site removal, fines, or disqualification from future work.

Performance Bond

Compliance

A surety bond guaranteeing a subcontractor will complete work per contract terms. If you default, the bond compensates the prime contractor or owner. Bonding capacity directly affects your ability to bid larger contracts.

Pre-Task Planning

Compliance

A structured safety and work review completed by a crew before starting a job on site. Subcontractors use it to identify hazards, assign roles, and confirm equipment readiness. It is often required by the prime contractor before work can begin.

Fall Prevention Campaign

Compliance

A structured site safety initiative targeting fall hazards across elevated work areas, scaffolding, and ladders. Subcontractors are typically required to participate and document compliance as a condition of their contract. It often involves toolbox talks, harness inspections, and audits by the prime contractor.

NORA (National Occupational Research Agenda)

Compliance

A U.S. research framework identifying priority workplace health and safety issues across industries, including oil and gas and construction. NORA findings often shape safety standards and training requirements that affect subcontractor compliance obligations. Field crews should monitor NORA sector updates, as they can signal incoming regulatory changes.

EMR (Experience Modification Rate)

Compliance

A numerical score calculated by insurers that compares your company's workplace injury claims to industry averages. A score below 1.0 indicates a safer-than-average record; above 1.0 signals higher risk. Many prime contractors and operators require subcontractors to maintain a low EMR to qualify for bid lists.

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