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Compliance Glossary Term

Fatigue Risk Management

A structured approach to identifying and controlling worker fatigue on job sites, especially during extended shifts or remote rotations. Subcontractors must often meet client FRM (Fatigue Risk Management) plans as a condition of site access. Failure to comply can result in removed personnel or contract termination.

Related Terms

Presidential Permit

Compliance

A U.S. federal authorisation required for cross-border infrastructure like pipelines or transmission lines at the Canada-U.S. boundary. Subcontractors on these projects cannot mobilise or break ground until the permit is secured. Delays in approval directly impact your project schedule and contract start dates.

Local Content Requirement

Compliance

A contractual or regulatory rule requiring subcontractors to hire local workers, source materials locally, or partner with regional firms. Non-compliance can disqualify you from bidding or trigger contract penalties. Common on projects funded by governments or national oil companies.

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.

MOC (Management of Change)

Compliance

A formal approval process required before altering scope, personnel, equipment, or procedures on a worksite. Subcontractors must submit MOC requests to the operator before making any unplanned changes. Skipping this step can result in work stoppages, liability exposure, or contract penalties.

Struck-By Hazard

Compliance

A struck-by hazard refers to any situation on a worksite where personnel risk injury from a moving object, such as swinging loads, dropped tools, vehicles, or pressurised line failures — a leading cause of fatality that subcontractors must identify and control in their site-specific hazard assessments and toolbox talks. For field service crews working around heavy equipment, cranes, or high-traffic laydown yards, recognising and mitigating struck-by risks is a core compliance obligation under provincial occupational health and safety legislation.

Bonded Operator License

Compliance

A licence that requires the holder to carry a surety bond as financial assurance that they will meet regulatory obligations, meaning subcontractors and field service companies must maintain this bond coverage to legally operate certain equipment or perform specific scopes of work on a client's site. For subcontractors, holding a bonded operator licence is often a prerequisite for bidding on contracts, as it signals to operators and general contractors that financial accountability is in place if work standards or regulatory requirements are not met.

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