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ComplianceGlossary Term

Davis-Bacon Prevailing Wage

A U.S. federal law requiring subcontractors on government-funded construction projects to pay workers the locally established minimum wage and benefits. Rates vary by trade, location, and job classification. Subcontractors must track and document compliance carefully or risk contract penalties.

Related Terms

Zero-Tolerance (drug and Alcohol Policy)

Compliance

A site policy that prohibits any detectable level of drugs or alcohol in workers. Subcontractors must ensure all personnel pass pre-access and random testing. Violations typically result in immediate removal from site and contract penalties.

Export Authorization

Compliance

A government-issued permit allowing equipment, technology, or services to be delivered across international borders. Subcontractors must secure this before mobilising tools or personnel to foreign project sites. Missing authorisation can halt operations and trigger costly delays.

PIT (Powered Industrial Truck)

Compliance

Any motorised vehicle used to move materials on a worksite, including forklifts, reach trucks, and pallet jacks. Subcontractors operating PITs must ensure operators hold valid, site-accepted certifications. Non-compliance can trigger work stoppages or removal from site.

Energy Control Program

Compliance

A documented system requiring subcontractors to isolate and de-energise equipment before maintenance or service work begins. It defines lockout/tagout procedures, worker responsibilities, and verification steps. Prime contractors often audit subcontractor programs before awarding site access.

OSHRC (Occupational Safety and Health Review Commission)

Compliance

A U.S. federal body that adjudicates disputes when employers contest OSHA citations or penalties. Subcontractors cited for worksite violations can appeal rulings here before escalating to federal courts. Decisions set legal precedents that directly affect safety compliance obligations on job sites.

Classification (aggregate)

Compliance

A method of grouping all subcontractor invoices or costs together to assess total contract value or spending thresholds. Owners and primes use aggregate classification to trigger compliance requirements, audit rights, or tiered pricing terms. Subcontractors should track cumulative billing carefully, as crossing thresholds can change contract obligations.

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