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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

Designer of Record

Compliance

The licensed engineer or firm legally responsible for a project's design documents and specifications. Subcontractors must follow their approved drawings exactly — any field changes require written authorisation from the Designer of Record. Deviating without approval can void liability protection and trigger compliance issues.

Rules of Origin

Compliance

Criteria that determine where goods or materials are considered to have been produced or manufactured. Subcontractors sourcing equipment or supplies across borders must verify origin to qualify for trade agreement pricing. Non-compliance can trigger tariffs that erode project margins.

Separation Distance

Compliance

The minimum required space between workers, equipment, or hazardous materials on a job site. Subcontractors must verify these distances before mobilising crews or staging equipment. Violating specified separation distances can trigger stop-work orders and affect contract standing.

Coal Workers' Pneumoconiosis

Compliance

A chronic lung disease caused by prolonged inhalation of coal dust, commonly called black lung. Subcontractors working near coal handling, mining, or processing sites must ensure crews have proper respiratory PPE. Exposure history affects worker fitness-for-duty certifications and employer liability.

Medium-Voltage Gear

Compliance

Electrical switchgear and distribution equipment operating between 1 kV and 35 kV, commonly found on industrial sites and large construction projects. Subcontractors working near or on this equipment typically require specialised high-voltage certifications and site-specific safety training. Improper handling can trigger serious liability and compliance issues for your crew.

Brackish Water

Compliance

Water with salinity between fresh water and seawater, commonly encountered during drilling or site dewatering operations. Subcontractors must handle it as a controlled substance — improper disposal can trigger environmental violations and project shutdowns. Verify disposal protocols with the prime contractor before mobilising.

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