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Compliance Glossary Term

Energy Isolation

The process of shutting down and locking out all energy sources — electrical, hydraulic, pneumatic — before maintenance or service work begins. Subcontractors are typically required to follow the site owner's specific isolation procedures and permit system. Non-compliance can result in immediate removal from site and liability exposure.

Related Terms

Ansi/isea 138

Compliance

The American National Standard for hand protection selection criteria. It gives subcontractors a structured method to match the right gloves to specific job hazards. Clients and prime contractors increasingly require documented compliance with this standard on worksites.

Installation Quality Documentation

Compliance

Records that prove work was completed to spec, including inspection reports, redlines, and sign-offs. Subcontractors use these to protect themselves during client audits or warranty disputes. Missing documentation can delay invoicing or trigger costly rework claims.

Energize

Compliance

To bring electrical equipment or a system into a live, powered state on a job site. Subcontractors must confirm proper authorisation and lockout/tagout clearance before energizing any equipment. Premature energizing is a leading cause of worksite incidents and contractor liability.

Api 579

Compliance

API 579 (Fitness-For-Service) is an industry standard used to assess whether ageing or damaged equipment is safe to keep operating. Subcontractors may be required to support or comply with these assessments during inspection and maintenance scopes. Understanding it helps when working alongside integrity engineers on pressure vessels, piping, and tanks.

Worker Misclassification

Compliance

Occurs when a subcontractor or field worker is incorrectly classified as an independent contractor instead of an employee. This exposes hiring companies to back-taxes, penalties, and liability for unpaid benefits. CRA audits in oil and gas and construction regularly target this issue.

Consent Order

Compliance

A legally binding agreement between a regulator and a company to correct violations without going to court. Subcontractors on affected sites may face work stoppages, added inspections, or new compliance requirements. Review consent orders tied to a client site before mobilising.

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