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Compliance Glossary Term

Customs Broker

A licensed intermediary who handles import and export paperwork for equipment and materials crossing international borders. Subcontractors moving tools or machinery into Canada or the U.S. often hire one to avoid costly delays. They ensure duties, tariffs, and compliance documents are filed correctly.

Related Terms

DBE (Disadvantaged Business Enterprise)

Compliance

A certification recognising businesses owned by minorities, women, or economically disadvantaged individuals. Prime contractors on federally funded projects often must subcontract a percentage of work to certified DBEs. Holding DBE status can open doors to set-aside contracts and preferred bidder programmes.

Surety

Compliance

A third party, usually an insurance or bonding company, that guarantees a subcontractor will fulfil their contractual obligations. If the subcontractor defaults, the surety compensates the project owner. Many upstream and construction clients require surety bonds before awarding work.

Approved Vendor List

Compliance

A client- or prime contractor-maintained registry of pre-qualified suppliers and subcontractors eligible to bid on work. Getting onto an AVL often requires submitting safety records, insurance, and certifications in advance. Without AVL status, subcontractors are typically blocked from receiving purchase orders or contracts.

Leak Detection and Measurement

Compliance

The process of identifying and quantifying unintended releases of gas, liquid, or vapour from pipelines, valves, or equipment. Subcontractors are often hired to perform LDM (Leak Detection and Measurement) surveys using specialised tools and sensors. Accurate reporting is critical, as findings directly affect regulatory compliance and operator liability.

Hot Work Permit

Compliance

A formal written authorisation required before performing any work that produces heat, sparks, or open flame on a job site. Subcontractors must obtain this permit before welding, cutting, or grinding near flammable materials. Site supervisors issue and sign off on these permits, and work must stop if conditions change.

Struck-By Hazard

Compliance

A struck-by hazard refers to any situation on a worksite where personnel risk injury from a moving object, such as swinging loads, dropped tools, vehicles, or pressurised line failures — a leading cause of fatality that subcontractors must identify and control in their site-specific hazard assessments and toolbox talks. For field service crews working around heavy equipment, cranes, or high-traffic laydown yards, recognising and mitigating struck-by risks is a core compliance obligation under provincial occupational health and safety legislation.

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