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Compliance Glossary 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

Compliance Theatre

Compliance

When a prime contractor or client demands excessive paperwork and box-ticking that looks rigorous but adds no real safety value. Subcontractors absorb the administrative burden without reduced liability or improved site outcomes. Recognising it helps crews push back on busy-work that pulls focus from genuine hazard control.

Stop-Before-Strike

Compliance

A mandatory work pause requiring crews to verify no buried utilities or underground hazards exist before digging or drilling begins. Subcontractors are typically contractually responsible for completing all locates and documented checks before breaking ground. Failure to comply can void insurance coverage and expose your company to full liability for strikes.

Environmental Permitting

Compliance

The process of obtaining government approvals before starting work that may impact land, water, or air. Subcontractors must confirm permits are in place before mobilising — delays can halt work without pay. Missing or expired permits can expose your company to fines and contract termination.

FERC (Federal Energy Regulatory Commission)

Compliance

The U.S. federal body that regulates interstate energy infrastructure, including pipelines and transmission lines. Projects requiring FERC approval often have strict compliance timelines that affect subcontractor scheduling and scope. Work on FERC-regulated assets may require additional permitting and documentation.

ITP (Inspection Test Plan)

Compliance

A document outlining required inspections, tests, and quality checks at specific project milestones. Subcontractors must follow the ITP to prove work meets client and regulatory standards. Hold points in the plan require client sign-off before work can continue.

FCI (Federal Contract Information)

Compliance

Information provided by or generated for a federal government contract, but not intended for public release. Subcontractors handling FCI must meet specific cybersecurity and data protection requirements. Non-compliance can result in contract termination or disqualification from future federal work.

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