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ComplianceGlossary Term

FHWA (Federal Highway Administration)

A U.S. federal agency that sets regulations for highway construction, maintenance, and safety standards. Subcontractors working on federally funded road projects must meet FHWA compliance requirements. This includes equipment standards, worker safety rules, and reporting obligations.

Related Terms

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.

Walkaround Inspection

Compliance

A pre-shift visual check of equipment, vehicles, or a worksite to identify hazards, damage, or defects before work begins. Subcontractors are typically required to document findings using a checklist. Incomplete or skipped inspections can create liability exposure and violate site safety requirements.

Sloping (excavation)

Compliance

A trench safety method where excavation walls are cut at a gradual angle to prevent collapse. Subcontractors must apply correct slope ratios based on soil type and provincial regulations. Non-compliance can halt work and trigger serious liability.

Defense Production Act

Compliance

A U.S. federal law allowing the government to prioritise contracts and redirect materials to national security needs. Subcontractors may face supply chain delays or material shortages when it is invoked. Equipment and parts sourcing timelines can shift significantly with little notice.

Payroll Tax

Compliance

Mandatory government deductions withheld from employee wages, including CPP, EI, and income tax. Subcontractors with direct employees must remit these to the CRA on a set schedule. Misclassifying workers as independent contractors to avoid payroll tax can trigger costly audits.

Work Zone

Compliance

A designated area on a job site where active work is performed, governed by strict safety and access controls. Subcontractors must obtain proper authorisation before entering and adhere to posted hazard signage. Boundaries are typically marked with barriers, flagging, or signage established by the prime contractor.

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