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ComplianceGlossary 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

Dig-In

Compliance

An accidental strike on a buried utility, pipeline, or cable during excavation work. For subcontractors, a dig-in can trigger work stoppages, liability claims, and regulatory investigations. Always confirm locate tickets are current before any ground disturbance.

Alternative Risk Transfer

Compliance

ART (Alternative Risk Transfer) covers non-traditional risk financing options outside standard insurance, such as captives or self-insurance pools. Subcontractors use ART programmes to manage liability exposure when conventional coverage is unavailable or too costly. Common in high-hazard field operations where standard insurers may decline coverage.

Underground Utility Strike

Compliance

An accidental hit to a buried line — gas, electric, telecom, or water — during excavation or drilling. Subcontractors are typically liable for damages, work stoppages, and injuries if proper locates weren't completed. Always confirm valid BC One Call or Alberta One-Call tickets before breaking ground.

Ansi/isea 138

Compliance

The American National Standard for hand protection selection criteria. It gives subcontractors a structured method to match the right gloves to specific job hazards. Clients and prime contractors increasingly require documented compliance with this standard on worksites.

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.

ASTM (American Society for Testing and Materials)

Compliance

A standards organisation that sets widely recognised specifications for materials, equipment, and testing procedures. Subcontractors must often meet ASTM standards when supplying materials or performing work on oil & gas and construction sites. Non-compliance can result in rejected work, failed inspections, or contract disputes.

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