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ComplianceGlossary Term

Consequential Damages

Indirect losses a party claims resulted from a contractor's failure, such as lost production revenue or project delays. Most subcontracts include a mutual waiver clause excluding these claims entirely. Always confirm this waiver is present before signing any field service agreement.

Related Terms

Facility Permit

Compliance

A site-specific authorisation required before subcontractors can perform work at an owner-operated facility. It outlines approved work scopes, safety conditions, and access restrictions. Failing to secure one before mobilising can result in removal from site or contract penalties.

Mediation

Compliance

A dispute resolution process where a neutral third party helps subcontractors and clients reach a settlement without going to court. Common in contract payment disputes or scope disagreements. It is faster and cheaper than litigation.

Energy Control Procedure

Compliance

A documented, step-by-step plan for isolating hazardous energy before subcontractors perform maintenance or service work. It outlines lockout/tagout steps specific to each piece of equipment on site. Subcontractors are typically required to follow or develop their own procedure that meets the site owner's standards.

Silica Disease

Compliance

An occupational lung illness caused by inhaling crystalline silica dust during drilling, sandblasting, or concrete work. Subcontractors must implement exposure controls and monitoring to meet regulatory requirements. Failure to protect workers can result in serious liability and lost contracts.

Cold Stress

Compliance

A health hazard caused by prolonged exposure to cold temperatures, wind, or moisture on outdoor worksites. It includes conditions like hypothermia, frostbite, and trench foot. Subcontractors must have cold stress protocols in place to meet occupational health and safety obligations.

Trenching Collapse

Compliance

A sudden cave-in of trench walls during excavation, posing serious injury or fatality risk to workers below grade. Subcontractors must ensure shoring, sloping, or trench box systems meet provincial OH&S requirements before crew entry. Liability for collapse incidents often falls on the excavating subcontractor, making documented safety compliance critical.

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