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Compliance Glossary Term

Civil Liability

The legal obligation to compensate another party for damages or losses caused by your work or negligence. For subcontractors, this typically arises from property damage, personal injury, or contract breaches on a job site. Adequate general liability insurance is your primary protection against civil liability claims.

Related Terms

Approved Vendor List

Compliance

A client- or prime contractor-maintained registry of pre-qualified suppliers and subcontractors eligible to bid on work. Getting onto an AVL often requires submitting safety records, insurance, and certifications in advance. Without AVL status, subcontractors are typically blocked from receiving purchase orders or contracts.

Psychological Safety

Compliance

A work environment where crew members feel safe to report hazards, mistakes, or concerns without fear of punishment or ridicule. For subcontractors, it reduces incident rates and improves site communication. Crews with high psychological safety are more likely to flag near-misses before they escalate.

Local Content

Compliance

A requirement that a set percentage of workers, materials, or services come from the local region or country. Subcontractors must often prove local hiring and sourcing to help clients meet these obligations. Non-compliance can disqualify your bid or void a contract.

FEMI (Fixed Equipment Mechanical Integrity)

Compliance

A systematic programme ensuring stationary assets like pressure vessels, piping, and heat exchangers remain safe and fit for service. Subcontractors often deliver FEMI work through inspection, NDT, and repair scopes under an owner's integrity management plan. Expect strict documentation requirements and third-party sign-off before returning equipment to service.

Indemnity Provision

Compliance

A contract clause that transfers liability for losses, injuries, or damages between parties. Subcontractors are often required to indemnify the prime contractor or operator against third-party claims. Review these clauses carefully, as they can expose your company to costs beyond your scope of work.

Order-In-Council

Compliance

A federal or provincial regulation passed by cabinet without a full legislative vote. For subcontractors, these can quickly change environmental rules, project approvals, or labour requirements on active job sites. Monitor them closely, as non-compliance can halt work or void contracts.

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