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ComplianceGlossary Term

Bonding Requirement

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.

Related Terms

Structural Safety Margin

Compliance

The buffer between a structure's maximum rated load capacity and the actual working load applied during operations. Subcontractors must verify these margins before rigging, lifting, or loading any platform, scaffold, or support structure. Exceeding the margin creates liability and triggers mandatory incident reporting.

Personnel Moc (management of Change)

Compliance

A formal process operators use when key personnel on a project are swapped out or replaced. Subcontractors must often submit documentation and get approval before substituting workers mid-contract. Failing to follow this process can result in work stoppages or contract penalties.

FHWA (Federal Highway Administration)

Compliance

A U.S. federal agency that sets regulations for highway construction, maintenance, and safety standards. Subcontractors working on federally funded road projects must meet FHWA compliance requirements. This includes equipment standards, worker safety rules, and reporting obligations.

NERC (North American Electric Reliability Corporation)

Compliance

A regulatory body that sets reliability standards for North America's bulk electric grid. Subcontractors working on power infrastructure, substations, or transmission projects must comply with NERC standards. Non-compliance can result in significant fines and disqualification from utility contracts.

I-9 (employment Eligibility Verification)

Compliance

A U.S. federal requirement to verify every worker's identity and legal right to work before mobilisation. Subcontractors must complete and retain I-9 forms for all field personnel, including short-term hires. Non-compliance can result in fines and disqualification from federal project work.

FLCA (Faster Labour Contracts Act)

Compliance

A regulatory framework requiring prime contractors to execute subcontractor agreements within defined timelines. It reduces delays in mobilisation by limiting how long contract finalisation can be withheld. Field service companies use it to protect against late-start losses on awarded work.

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