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ComplianceGlossary Term

IADC (International Association of Drilling Contractors)

A global industry body that sets drilling standards, safety training programmes, and well control certifications. Subcontractors working on drilling sites often need IADC-recognised credentials to qualify for contracts. Holding valid IADC certifications can directly affect your crew's eligibility and your bid competitiveness.

Related Terms

Contempt Proceedings

Compliance

A court process used to enforce compliance with a court order, such as a payment judgment or injunction. Subcontractors can initiate contempt proceedings against clients who ignore court-ordered payments. Penalties may include fines or other sanctions against the non-complying party.

Utility Locate

Compliance

A pre-dig service that identifies and marks underground utilities before excavation begins. Subcontractors are typically required to obtain a locate before breaking ground. Failure to do so can result in liability for damages, project shutdowns, or regulatory fines.

Methane Emissions Rule

Compliance

A federal or provincial regulation requiring oil and gas operators to detect and reduce methane leaks from equipment and facilities. Subcontractors performing work on wellsites, pipelines, or processing equipment may need to meet specific leak detection and repair (LDAR) standards. Non-compliance can result in fines or disqualification from operator contracts.

Facility Permit

Compliance

A site-specific authorisation required before subcontractors can perform work at an owner-operated facility. It outlines approved work scopes, safety conditions, and access restrictions. Failing to secure one before mobilising can result in removal from site or contract penalties.

Rules of Origin

Compliance

Criteria that determine where goods or materials are considered to have been produced or manufactured. Subcontractors sourcing equipment or supplies across borders must verify origin to qualify for trade agreement pricing. Non-compliance can trigger tariffs that erode project margins.

Hazard Elimination

Compliance

The highest level of hazard control, where a risk is completely removed from the worksite rather than managed. For subcontractors, this may mean redesigning a task or substituting dangerous equipment before mobilising crews. It is the preferred first step in any hierarchy of controls review.

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