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Compliance Glossary Term

FAR (Federal Acquisition Regulation)

The FAR governs purchasing rules for U.S. federal contracts, including subcontractor requirements on government-funded projects. If your prime contractor holds a federal contract, FAR clauses flow down and bind your work. These rules cover pricing, record-keeping, audits, and labour standards you must follow.

Related Terms

Hot Works

Compliance

Any task that produces open flame, sparks, or heat sufficient to ignite flammable materials. Common examples include welding, cutting, and grinding. Subcontractors typically require a Hot Works permit before starting, and site compliance checks are strict.

Well Licensing

Compliance

A regulatory approval issued by provincial authorities before drilling or completing a well can begin. Subcontractors should confirm a valid licence is in place before mobilising, as work cannot legally proceed without it. Delays in licensing directly affect your crew scheduling and contract start dates.

Nuclear Verdict

Compliance

A jury award so large it far exceeds actual damages, often driven by juror emotion rather than evidence. For subcontractors, even one such ruling can bankrupt a company or trigger uninsurable liability exposure. These verdicts are increasingly common in oilfield and construction injury cases.

Methane Regulations

Compliance

Federal and provincial rules limiting methane emissions from oil and gas operations. Subcontractors must ensure equipment like compressors and pneumatic devices meets leak detection and repair standards. Non-compliance can result in work stoppages or contract termination.

H2s (hydrogen Sulfide)

Compliance

A toxic, flammable gas found on many oil and gas sites that poses serious health and safety risks to field workers. Subcontractors must ensure all personnel hold valid H2S Alive certification before mobilising to affected sites. Failure to comply can result in immediate removal from site and contract penalties.

NEP (National Emphasis Program)

Compliance

A targeted OSHA enforcement initiative focusing inspections on high-hazard industries or specific workplace dangers. Subcontractors in oil and gas or construction may face increased on-site audits under an active NEP. Being caught unprepared can result in citations, stop-work orders, and lost contracts.

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