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ComplianceGlossary Term

GHS (Globally Harmonized System of Classification and Labelling of Chemicals)

An international standard for identifying and communicating chemical hazards through standardised labels and Safety Data Sheets (SDS). Subcontractors must ensure all hazardous products on site are GHS-compliant and that workers are trained to read labels and SDS documents. Non-compliance can result in site removal or regulatory fines.

Related Terms

Willful Egregious Violation

Compliance

A deliberate, serious breach of safety or regulatory rules that regulators treat as the most severe infraction category. For subcontractors, this triggers maximum fines and potential worksite bans. It typically involves knowingly ignoring standards that put workers at serious risk.

OFCCP (Office of Federal Contract Compliance Programs)

Compliance

A U.S. federal agency enforcing equal employment rules for companies working on federal contracts. Subcontractors on U.S. federal projects must meet hiring and anti-discrimination requirements. Non-compliance can result in contract termination or debarment from future federal work.

API (American Petroleum Institute)

Compliance

The leading industry organisation that develops technical standards, safety protocols, and equipment specifications that subcontractors must follow when working on oil and gas projects. API certifications and compliance with API standards are often mandatory requirements in service contracts and can affect your ability to bid on projects.

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.

Protest (customs)

Compliance

A formal dispute filed against a customs ruling, such as import duties charged on tools or equipment crossing the border. Subcontractors use protests to recover overbilled duties on temporarily imported gear. Filing deadlines are strict, so act quickly after receiving a customs decision.

Metering Calibration

Compliance

The process of verifying and adjusting flow meters, pressure gauges, and other measurement instruments to ensure accurate readings that meet regulatory and client standards — subcontractors providing metering services must maintain current calibration records as proof of compliance and to avoid liability for measurement disputes or billing discrepancies.

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