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ComplianceGlossary Term

Competent Person

A worker recognised by a client or regulator as having the training, experience, and authority to identify hazards and direct safe work. Subcontractors are often required to designate a Competent Person on-site before work begins. Failing to do so can result in work stoppages or lost contracts.

Related Terms

Loss of Containment

Compliance

An unplanned release of a hazardous substance — liquid, gas, or solid — from piping, vessels, or equipment. For subcontractors, an LOC incident can trigger immediate work stoppages, site investigations, and liability exposure. Proper reporting and response procedures are typically required under your prime contractor agreement.

Certificate of Need

Compliance

A regulatory document authorising a subcontractor to provide specific services or deploy equipment in a given jurisdiction. Obtaining one may be required before mobilising crews or bidding on certain projects. Delays in approval can impact project start dates and cash flow.

ESA (Endangered Species Act)

Compliance

Federal legislation protecting at-risk wildlife and their habitats from project-related disturbance. Subcontractors working near designated critical habitat may face work stoppages, seasonal restrictions, or mandatory wildlife surveys. Non-compliance can halt projects and expose crews to significant fines.

Carbon Credits and Offsets

Compliance

Tradeable certificates representing one tonne of CO2 reduced or removed from the atmosphere. Large operators purchase these to meet emissions targets, which can flow down as reporting requirements to subcontractors. Tracking your fleet's fuel consumption and emissions data may be required to support client compliance.

ASME (American Society of Mechanical Engineers)

Compliance

A global standards organisation that sets codes for pressure vessels, piping, and mechanical equipment used on job sites. Subcontractors working on boilers, pressure systems, or lifting equipment often must meet ASME standards to qualify for contracts. Non-compliance can trigger failed inspections, work stoppages, or liability exposure.

Heat Illness Prevention Standard

Compliance

A regulatory requirement mandating that subcontractors implement heat safety protocols for outdoor and high-temperature worksites. It typically covers acclimatisation procedures, water access, rest breaks, and emergency response plans. Non-compliance can result in stop-work orders, fines, or disqualification from site.

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