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Compliance Glossary Term

Bonding Capacity

The maximum value of surety bonds a subcontractor can obtain, proving financial reliability to general contractors and project owners. Higher bonding capacity allows you to bid on larger or multiple simultaneous contracts. Insurers set this limit based on your financials, credit history, and past project performance.

Related Terms

Jones Act

Compliance

A U.S. federal law requiring vessels operating between American ports to be U.S.-built, owned, and crewed. Subcontractors providing marine labour or vessel services must verify crew eligibility and vessel compliance before mobilising. Non-compliance can result in contract termination and significant fines.

Shoring

Compliance

Temporary support structures used to stabilise trenches, excavations, or buildings during construction or repair work. Subcontractors are often required to install shoring before crews can safely enter a dig site. Proper shoring is a regulated safety requirement and failure to comply can result in work stoppages or liability.

Non-Entry Rescue

Compliance

A rescue method for retrieving an incapacitated worker from a confined space without a rescuer entering it. Subcontractors must have approved non-entry rescue equipment and trained personnel on-site before any confined space work begins. Regulators in Canada require this as the primary rescue method wherever feasible.

Api 580 (american Petroleum Institute Standard 580)

Compliance

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.

Hazcom (hazard Communication Standard)

Compliance

A regulatory requirement mandating that workers are informed about hazardous chemicals on site through labels, Safety Data Sheets, and training. Subcontractors must maintain compliant SDS binders and ensure crews are trained before handling any hazardous materials. Non-compliance can result in site removal or fines from regulators like WorkSafeBC or the OHS.

LCRI (Lead and Copper Rule Improvements)

Compliance

A U.S. EPA regulation requiring water utilities to replace lead service lines within 10 years. Subcontractors performing pipe replacement or water system work must meet strict material and testing standards. Non-compliance can disqualify firms from municipal infrastructure contracts.

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