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Compliance Glossary 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

Process Safety

Compliance

The discipline focused on preventing uncontrolled releases of hazardous materials or energy that could cause fires, explosions, or toxic events. Subcontractors working near pressurised systems or chemicals must understand site-specific process hazards before starting work. Non-compliance can result in immediate removal from site and liability exposure.

Leading Indicators

Compliance

Proactive metrics that signal future safety or performance issues before incidents occur. For subcontractors, these include near-miss reports, toolbox talk attendance, and equipment inspection rates. Tracking them helps crews stay ahead of problems rather than reacting after the fact.

CIH (Certified Industrial Hygienist)

Compliance

A credentialed professional who assesses and controls workplace health hazards such as chemical exposure, noise, and air quality. Subcontractors may be required to retain or consult a CIH to meet site entry or regulatory requirements. Their sign-off can be mandatory before work begins in confined spaces or hazardous environments.

LOTO (Lockout/tagout)

Compliance

A mandatory safety procedure requiring subcontractors to physically lock and label energy sources before servicing equipment. It prevents accidental startup during maintenance work. Site operators often require proof of worker LOTO certification before mobilisation.

PPE (Personal Protective Equipment)

Compliance

Protective gear — such as hard hats, steel-toed boots, high-visibility vests, gloves, and eye protection — that subcontractors and their crews are required to wear on oil & gas and construction sites to meet site-specific safety standards and regulatory obligations. As a subcontractor, ensuring your workers arrive on-site with proper, compliant PPE is typically your responsibility and a condition of maintaining your contract.

Federal Lease

Compliance

A government-issued agreement granting a company the right to explore or extract resources on federally managed land. Subcontractors working on these sites must meet stricter regulatory and documentation requirements. Expect additional compliance checks, environmental controls, and reporting obligations on federally leased projects.

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