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ComplianceGlossary Term

Builders Risk

A temporary property insurance policy covering structures under construction against damage or loss. Subcontractors may be required to carry it or be named on the general contractor's policy. Confirm coverage responsibilities before mobilising to avoid gaps.

Related Terms

Indemnification

Compliance

A contractual obligation where one party agrees to cover another's losses, claims, or legal costs. For subcontractors, indemnification clauses often require you to absorb liability even for an operator's own negligence. Always have legal counsel review these clauses before signing.

CMMC (Cybersecurity Maturity Model Certification)

Compliance

A U.S. Department of Defence framework requiring contractors to meet specific cybersecurity standards before bidding on federal contracts. For field subcontractors, it means your digital systems, devices, and data handling practices must pass a formal audit. Without certification, you may be disqualified from certain government-linked oil and gas or construction projects.

HSE (Health, Safety, and Environment)

Compliance

A framework governing safe work practices, environmental protection, and worker health on job sites. Subcontractors must meet client HSE standards to qualify for and maintain contracts. Non-compliance can result in work stoppages, site removal, or lost future opportunities.

Flaring

Compliance

The controlled burning of excess natural gas at a wellsite or facility. Subcontractors working on-site must follow strict flaring protocols, as ignition hazards affect work permits and safety zones. Flaring activity can also trigger regulatory hold points that delay field operations.

Consent Judgment

Compliance

A court-approved settlement where both parties agree to terms without a full trial. For subcontractors, this often resolves payment disputes or liability claims with a binding repayment schedule. Violating the terms can result in immediate enforcement action against your company.

811 Ticket

Compliance

A government-issued dig permit confirming underground utilities have been located and marked before excavation begins. Subcontractors must obtain one before any ground-disturbance work. Operating without one exposes your crew to liability, fines, and project shutdowns.

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