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ComplianceGlossary Term

Comparative Negligence

A legal principle that assigns fault percentages to each party involved in an incident or loss. If a subcontractor is found partially at fault, their compensation can be reduced by their share of blame. Understanding this protects subcontractors from absorbing disproportionate liability on shared job sites.

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.

Api 579

Compliance

API 579 (Fitness-For-Service) is an industry standard used to assess whether ageing or damaged equipment is safe to keep operating. Subcontractors may be required to support or comply with these assessments during inspection and maintenance scopes. Understanding it helps when working alongside integrity engineers on pressure vessels, piping, and tanks.

Greenhouse Gas Inventory

Compliance

A documented record of all GHG (Greenhouse Gas) emissions generated by your operations, including equipment, vehicles, and fuel use. Prime contractors increasingly require subcontractors to submit one for project bids. Accurate tracking helps avoid compliance penalties and supports contract eligibility.

Methane Regulations

Compliance

Federal and provincial rules limiting methane emissions from oil and gas operations. Subcontractors must ensure equipment like compressors and pneumatic devices meets leak detection and repair standards. Non-compliance can result in work stoppages or contract termination.

Performance Bond

Compliance

A surety bond guaranteeing a subcontractor will complete work per contract terms. If you default, the bond compensates the prime contractor or owner. Bonding capacity directly affects your ability to bid larger contracts.

State Injunction

Compliance

A court order from a provincial or state government that halts work on a project or site. Subcontractors must stop operations immediately or risk legal penalties. This can freeze contracts, delay payments, and strand mobilised crews and equipment.

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