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ComplianceGlossary Term

Classification (aggregate)

A method of grouping all subcontractor invoices or costs together to assess total contract value or spending thresholds. Owners and primes use aggregate classification to trigger compliance requirements, audit rights, or tiered pricing terms. Subcontractors should track cumulative billing carefully, as crossing thresholds can change contract obligations.

Related Terms

RT (Radiographic Testing)

Compliance

A non-destructive inspection method using X-rays or gamma rays to detect internal flaws in welds and pipework. Subcontractors must ensure certified RT technicians and proper radiation safety protocols are in place. Clients often require RT sign-off before authorising pressure testing or commissioning work.

Multi-Employer Citation Policy

Compliance

A regulatory policy allowing safety authorities to issue violations to multiple employers on a shared worksite, not just the site owner. As a subcontractor, you can be cited for hazards you created, controlled, or exposed your workers to. Understanding this policy is critical when operating under a prime contractor on oil and gas or construction sites.

BLM (Bureau of Land Management)

Compliance

A U.S. federal agency that manages public lands and issues permits for oil, gas, and construction operations on those lands. Subcontractors working on BLM-administered land must comply with specific permit conditions, environmental rules, and access requirements. Non-compliance can result in work stoppages or contract penalties.

Discovery Window

Compliance

The limited timeframe in which a subcontractor can identify and formally report hidden site conditions that differ from the original contract scope. Missing this window typically voids your right to claim additional compensation or schedule relief. Review your contract carefully — discovery windows can be as short as 24 to 72 hours after encountering the condition.

Federal Acreage

Compliance

Land or mineral rights owned and managed by the federal government where drilling or construction activity requires federal permits and approvals. Subcontractors working on federal acreage must meet stricter regulatory requirements than on provincial or private land. Expect longer permitting timelines and additional compliance obligations that can affect project schedules and mobilisation.

Federal Onshore Acreage

Compliance

Land managed by the federal government and leased for oil, gas, or resource extraction. Work on these lands requires additional permits, compliance steps, and federal oversight. Subcontractors must verify their employer holds valid federal authorisations before mobilising.

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