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ComplianceGlossary Term

Community Benefits Agreement

A contract between a project owner and local stakeholders requiring hiring targets for local labour and subcontractors. Field service companies bidding on major projects may need to demonstrate local content compliance to qualify. Non-compliance can result in contract penalties or disqualification.

Related Terms

Asme Bpv (boiler and Pressure Vessel) Code

Compliance

A set of standards governing the design, fabrication, and inspection of pressure vessels and boilers. Subcontractors working on pressure equipment must ensure their work meets applicable ASME BPV sections or risk failing inspection. Non-compliance can result in project shutdowns, liability exposure, and lost contracts.

Reasonable Suspicion

Compliance

A belief, based on observable signs, that a worker may be impaired by drugs or alcohol on site. Supervisors must document specific behaviours before initiating a test. Subcontractors are typically required to have trained supervisors capable of making this determination.

Hazard Assessment

Compliance

A formal process where subcontractors identify and evaluate site-specific risks before work begins. It documents potential dangers, required controls, and responsible parties. Most client operators require a completed hazard assessment before issuing a work permit.

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.

PSM (Process Safety Management)

Compliance

A regulatory framework governing hazardous process facilities like refineries and gas plants. Subcontractors working on-site must comply with the operator's PSM programme, including hazard reviews and safe work permits. Non-compliance can result in immediate removal from site.

Fall Protection Program

Compliance

A documented safety plan required when workers are exposed to fall hazards above 3 metres. It outlines equipment requirements, inspection procedures, and worker training obligations. Subcontractors are typically responsible for maintaining their own compliant program on site.

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