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Compliance Glossary 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

Ansi/isea 138

Compliance

The American National Standard for hand protection selection criteria. It gives subcontractors a structured method to match the right gloves to specific job hazards. Clients and prime contractors increasingly require documented compliance with this standard on worksites.

Nfpa 70b (national Fire Protection Association Recommended Practice for Electrical Equipment Maintenance)

Compliance

A U.S. standard outlining inspection, testing, and maintenance requirements for electrical systems and equipment. Field service contractors performing electrical maintenance work may be required to follow NFPA 70B procedures on job sites. Compliance demonstrates due diligence and is often specified in client scopes of work.

FAR (Federal Acquisition Regulation)

Compliance

The FAR governs purchasing rules for U.S. federal contracts, including subcontractor requirements on government-funded projects. If your prime contractor holds a federal contract, FAR clauses flow down and bind your work. These rules cover pricing, record-keeping, audits, and labour standards you must follow.

Resource Road

Compliance

A privately maintained access road built to reach remote work sites in oil & gas or forestry operations. Subcontractors must follow strict user agreements covering speed limits, radio protocols, and load restrictions. Non-compliance can result in access suspension, halting your crew's ability to reach site.

ARO (Asset Retirement Obligations)

Compliance

Legally 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.

Dust Suppression

Compliance

The process of controlling airborne particulates on worksites using water trucks, chemical agents, or barriers. Subcontractors may be contractually responsible for dust suppression on access roads, laydown yards, or excavation sites. Failure to comply can result in stop-work orders or back-charges from the prime contractor.

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