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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

Peak Load Contribution

Compliance

The share of electrical capacity a subcontractor's site equipment or temporary facilities must supply during periods of maximum demand. Operators may contractually require field crews to manage or limit equipment startup times to avoid triggering peak load charges. Failing to comply can result in cost penalties passed down through the prime contractor.

LFI (Learning From Incidents)

Compliance

A formal process where incident findings are shared across crews and job sites to prevent repeat occurrences. Subcontractors are often required by operators to distribute LFIs to their workforce and document acknowledgement. Failure to action LFIs can affect your standing on approved vendor lists.

Reactive Hazard

Compliance

A substance or condition that can cause fire, explosion, or violent reaction when exposed to heat, air, water, or other chemicals. Subcontractors must identify these hazards during site orientations and follow the operator's safe handling procedures. Failure to do so can trigger immediate work stoppages or removal from site.

Indemnity Provision

Compliance

A contract clause that transfers liability for losses, injuries, or damages between parties. Subcontractors are often required to indemnify the prime contractor or operator against third-party claims. Review these clauses carefully, as they can expose your company to costs beyond your scope of work.

SDS (Safety Data Sheet)

Compliance

A standardised document detailing the hazards, handling requirements, and emergency procedures for a chemical or hazardous material. Subcontractors must keep current SDSs on-site for every controlled product their crew uses or transports. Inspectors and site safety officers can shut down work if SDSs are missing or outdated.

Carbon Pricing

Compliance

A government-imposed cost on greenhouse gas emissions, typically applied per tonne of CO2 equivalent. Subcontractors may face carbon charges on fuel, equipment operation, and fleet usage. These costs can affect project bids and operating margins if not factored into quotes.

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