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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

Pre-Filing Waiver

Compliance

A written agreement where a subcontractor gives up the right to file a builders' or mechanics' lien before work begins. General contractors or owners often require it as a condition of awarding a contract. Review carefully — signing one limits your legal options if payment disputes arise.

Heat Stress

Compliance

A condition where the body cannot cool itself fast enough during hot or humid work conditions. It poses serious health and liability risks for subcontractors with outdoor or confined-space crews. Unmanaged heat stress can trigger site shutdowns and affect your compliance standing with the prime contractor.

EMR (Experience Modification Rate)

Compliance

A numerical score calculated by insurers that compares your company's workplace injury claims to industry averages. A score below 1.0 indicates a safer-than-average record; above 1.0 signals higher risk. Many prime contractors and operators require subcontractors to maintain a low EMR to qualify for bid lists.

ISEA (International Safety Equipment Association)

Compliance

A North American trade body that sets performance standards for personal protective equipment (PPE). Subcontractors should verify that hard hats, high-visibility vests, and eye protection meet ISEA standards. Many operator and general contractor safety plans require ISEA-compliant PPE on site.

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.

Lead Service Line Replacement

Compliance

A regulated programme to remove and replace lead water pipes connecting mains to buildings. Subcontractors are often mobilised under municipal contracts to perform excavation, pipe removal, and restoration work. Compliance with environmental and safety regulations is mandatory throughout.

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