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Compliance Glossary Term

Impairment-Based Testing

A drug and alcohol testing method that assesses a worker's current functional fitness rather than detecting past substance use. It uses cognitive or physical performance baselines to flag impairment at the time of testing. Subcontractors must understand site requirements, as accepted methods vary by client and jurisdiction.

Related Terms

Binding Arbitration

Compliance

A dispute resolution process where both parties agree to let a neutral third party make a final, legally enforceable decision. Subcontractors often encounter this clause in master service agreements with operators. Unlike court proceedings, the arbitrator's ruling cannot typically be appealed.

TRIR (Total Recordable Incident Rate)

Compliance

A standardised safety metric that measures workplace injuries per 100 full-time workers annually. Clients use your TRIR to prequalify subcontractors for contracts and site access. A high TRIR can disqualify your crew from working on regulated job sites.

Hazmat-Permitted Storage

Compliance

Designated facilities licenced to store hazardous materials such as fuel, chemicals, or drilling fluids under strict regulatory approval. Subcontractors must verify their storage sites hold valid permits before mobilising hazardous goods to a worksite. Non-compliance can trigger project shutdowns, fines, or loss of contract eligibility.

Civil Liability

Compliance

The legal obligation to compensate another party for damages or losses caused by your work or negligence. For subcontractors, this typically arises from property damage, personal injury, or contract breaches on a job site. Adequate general liability insurance is your primary protection against civil liability claims.

HSE (Health, Safety, and Environment)

Compliance

A framework governing safe work practices, environmental protection, and worker health on job sites. Subcontractors must meet client HSE standards to qualify for and maintain contracts. Non-compliance can result in work stoppages, site removal, or lost future opportunities.

Competent Person

Compliance

A worker recognised by a client or regulator as having the training, experience, and authority to identify hazards and direct safe work. Subcontractors are often required to designate a Competent Person on-site before work begins. Failing to do so can result in work stoppages or lost contracts.

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