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ComplianceGlossary Term

Hot Work Permit

A formal written authorisation required before performing any work that produces heat, sparks, or open flame on a job site. Subcontractors must obtain this permit before welding, cutting, or grinding near flammable materials. Site supervisors issue and sign off on these permits, and work must stop if conditions change.

Related Terms

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.

Pm (preventive Maintenance) Compliance

Compliance

The percentage of scheduled preventive maintenance tasks completed on time. High PM compliance protects subcontractors from liability and supports equipment uptime on client sites. Clients often audit PM records before renewing service contracts.

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.

Resource Road

Compliance

A privately maintained access road built to reach remote work sites in oil & gas or forestry operations. Subcontractors must follow strict user agreements covering speed limits, radio protocols, and load restrictions. Non-compliance can result in access suspension, halting your crew's ability to reach site.

Compliance Theatre

Compliance

When a prime contractor or client demands excessive paperwork and box-ticking that looks rigorous but adds no real safety value. Subcontractors absorb the administrative burden without reduced liability or improved site outcomes. Recognising it helps crews push back on busy-work that pulls focus from genuine hazard control.

FAR (Federal Acquisition Regulation)

Compliance

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.

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