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ComplianceGlossary Term

Director Liability

Personal legal responsibility that company directors carry when their firm fails to meet obligations like unpaid wages or HST remittances. In field service companies, owners acting as directors can be held personally liable for corporate debts. Subcontractors operating as incorporated businesses should understand this risk before taking on large contracts.

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.

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.

Hazardous Energy Control

Compliance

A formal system for isolating and de-energising equipment before maintenance or repair work begins. For subcontractors, this typically means following a client's lockout/tagout (LOTO) programme on site. Non-compliance can result in work stoppages, contract termination, or serious injury.

Underground Utility Strike

Compliance

An accidental hit to a buried line — gas, electric, telecom, or water — during excavation or drilling. Subcontractors are typically liable for damages, work stoppages, and injuries if proper locates weren't completed. Always confirm valid BC One Call or Alberta One-Call tickets before breaking ground.

Ladder Safety System

Compliance

A fixed assembly of rails, brackets, and a climbing sleeve that prevents a worker from falling off a vertical ladder. Subcontractors are often required to install or inspect these systems before crews access elevated structures. Compliance with provincial fall-protection codes is typically a condition of site entry.

Api 579-1/asme Ffs-1 (fitness-for-Service Standard)

Compliance

A joint API/ASME standard used to assess whether ageing or damaged equipment is still safe to operate. Subcontractors may be required to conduct or support FFS assessments on pressure vessels, piping, and tanks. Results determine if equipment can stay in service, requires repair, or must be decommissioned.

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