FieldNews
Subscribe
Compliance Glossary Term

Indemnification

A contractual obligation where one party agrees to cover another's losses, claims, or legal costs. For subcontractors, indemnification clauses often require you to absorb liability even for an operator's own negligence. Always have legal counsel review these clauses before signing.

Related Terms

Corrective Action Plan

Compliance

A formal document a subcontractor submits after a safety incident, audit failure, or contract non-compliance. It outlines specific steps, responsible parties, and deadlines to fix the identified problem. Clients or prime contractors often require approval before field work can resume.

Vendor Qualification

Compliance

The process by which operators and prime contractors vet subcontractors before awarding work. It typically involves reviewing insurance, safety records, certifications, and financial stability. Failing to qualify can bar a company from bidding on projects entirely.

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.

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.

AER (Alberta Energy Regulator)

Compliance

Alberta's provincial body that regulates oil, gas, and coal development. Subcontractors must meet AER compliance requirements to work on regulated sites. Non-compliance can result in work stoppages or contract disqualification.

Approved Vendor List

Compliance

A client- or prime contractor-maintained registry of pre-qualified suppliers and subcontractors eligible to bid on work. Getting onto an AVL often requires submitting safety records, insurance, and certifications in advance. Without AVL status, subcontractors are typically blocked from receiving purchase orders or contracts.

Stay sharp on field operations

Industry news and insights, delivered to your inbox.

Subscribe to FieldNews
A community project by Aimsio