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ComplianceGlossary Term

Facility Permit

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.

Related Terms

PHMSA (Pipeline and Hazardous Materials Safety Administration)

Compliance

A U.S. federal agency that sets safety regulations for pipeline operations and hazardous materials transport. Subcontractors working on pipeline projects or hauling dangerous goods must meet PHMSA compliance standards. Non-compliance can result in fines, work stoppages, or contract termination.

Community Benefits Agreement

Compliance

A contract between a project owner and local stakeholders requiring hiring targets for local labour and subcontractors. Field service companies bidding on major projects may need to demonstrate local content compliance to qualify. Non-compliance can result in contract penalties or disqualification.

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.

Procedure Drift

Compliance

The gradual deviation from approved work methods or safety protocols, often through small, unnoticed shortcuts. For subcontractors, it creates serious liability exposure during audits or incident investigations. Clients may withhold payment or terminate contracts if drift is found during site inspections.

Hazcom (hazard Communication Standard)

Compliance

A regulatory requirement mandating that workers are informed about hazardous chemicals on site through labels, Safety Data Sheets, and training. Subcontractors must maintain compliant SDS binders and ensure crews are trained before handling any hazardous materials. Non-compliance can result in site removal or fines from regulators like WorkSafeBC or the OHS.

Cold Stress

Compliance

A health hazard caused by prolonged exposure to cold temperatures, wind, or moisture on outdoor worksites. It includes conditions like hypothermia, frostbite, and trench foot. Subcontractors must have cold stress protocols in place to meet occupational health and safety obligations.

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