A contractual obligation requiring subcontractors to obtain a surety bond guaranteeing project completion or payment to suppliers. General contractors use bonds to protect against default or non-performance. Bonding capacity can limit the size and number of contracts a field service company can bid on.
Bonding Requirement
Related Terms
Certified Payroll
ComplianceA government-required weekly payroll report proving workers were paid prevailing wages on publicly funded projects. Subcontractors must submit it to the prime contractor or project owner. Errors or late submissions can delay payment or trigger contract penalties.
ARO (Asset Retirement Obligations)
ComplianceLegally required costs to decommission and remediate a site at end of life, such as plugging wells or removing infrastructure. Operators budget ARO years in advance, which can create late-project work opportunities for subcontractors. Understand how ARO timelines affect contract scope, since decommissioning work often has strict regulatory deadlines.
Api 653
ComplianceAPI 653 (American Petroleum Institute Standard 653) governs the inspection, repair, alteration, and reconstruction of above-ground storage tanks. Subcontractors performing tank work must comply with this standard or risk failed inspections and contract penalties. Many operators require certified API 653 inspectors on-site before authorising any tank maintenance scope.
Pinch Point
ComplianceA location where a worker's body part can be caught between moving and stationary objects. Common on heavy equipment, rigging, and rotating machinery at oil and gas and construction sites. Subcontractors must identify and guard pinch points during site hazard assessments.
Spoil Management
ComplianceThe handling, hauling, and disposal of excavated soil, rock, or debris generated during earthwork and pipeline projects. Subcontractors are often responsible for sourcing approved disposal sites and documenting waste volumes. Poor planning can lead to site delays and regulatory penalties.
Near Miss
ComplianceAn unplanned event that did not result in injury or damage but had the potential to do so. Subcontractors are typically required to report near misses to the prime contractor or site owner. Failing to report can jeopardise your safety record and standing on site.
Latest Compliance News
Interior Slashes Federal Bonding Requirements, Cutting Entry Costs for Small Oil and Gas Operators
The Department of the Interior has rolled back bonding requirements for federal oil and gas leases, dropping the minimum statewide bond from $500,000 back to $25,000, a move that could open public lands to more independent operators.
yesterday ComplianceTrump Administration Proposes Cutting Federal Land Drilling Bond Requirements by 95%
The Interior Department has proposed slashing statewide bonding requirements for oil and gas wells on federal lands from $500,000 to $25,000, part of a broader push to reduce compliance costs for energy operators.
9 days ago Compliance$3.5M in OSHA Fines Follow Houston Chemical Spill Cleanup That Left Workers Unprotected
Three companies face over $3.5 million in proposed OSHA penalties after federal inspectors found workers were sent into a million-gallon sulfuric acid spill cleanup without adequate training, respirators, or safety measures at a Houston-area facility.
yesterday ComplianceOhio Gas Explosion Triggered by Contractor Strike Destroys Three Homes, Damages 30 More
A contractor struck a natural gas line in Twinsburg Township, Ohio on June 25, 2026, triggering an explosion that destroyed three homes and damaged more than 30 others. The incident is now under investigation by state regulators, with questions over utility marking accuracy at the center of the probe.
yesterdayRelated Guides
When a Jobsite Incident Happens: What Field Workers Need to Know Before Signing Anything
What to do after a jobsite injury or incident, what your rights are before signing incident reports, how workers' compensation works, and how to protect yourself on multi-employer worksites.
Compliance GuideOSHA Citations on Multi-Employer Worksites: What Subcontractors Need to Know
Learn how OSHA's multi-employer citation policy works, why subcontractors get cited for hazards they didn't create, and how to protect your company on operator-controlled job sites.
Compliance GuideHow to Read and Negotiate an Oilfield Master Service Agreement (MSA): A Subcontractor's Guide
Learn which MSA clauses actually matter for oilfield subcontractors: indemnity, insurance, payment terms, and change orders. Know what you're signing.
Stay sharp on field operations
Industry news and insights, delivered to your inbox.
Subscribe to FieldNews