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ComplianceGlossary Term

Indemnity Provision

A contract clause that transfers liability for losses, injuries, or damages between parties. Subcontractors are often required to indemnify the prime contractor or operator against third-party claims. Review these clauses carefully, as they can expose your company to costs beyond your scope of work.

Related Terms

Acclimatization

Compliance

The process of allowing workers to safely adjust to extreme heat, cold, or altitude before full-duty deployment. Most worksites and safety regulations require a structured acclimatization period for new or returning crew. Subcontractors must factor this non-productive time into scheduling and labour costs.

Vehicle Incursion

Compliance

An unauthorised entry of a vehicle into a restricted or controlled work zone on a job site. Subcontractors are often held liable if their equipment or drivers breach designated exclusion areas. Incursions can trigger incident reports, work stoppages, and contract penalties.

MOC (Management of Change)

Compliance

A formal approval process required before altering scope, personnel, equipment, or procedures on a worksite. Subcontractors must submit MOC requests to the operator before making any unplanned changes. Skipping this step can result in work stoppages, liability exposure, or contract penalties.

Controlling Employer

Compliance

The prime contractor or site owner who directs work conditions and sets safety rules on a multi-employer worksite. As a subcontractor, you may still be cited for hazards even if the controlling employer created them. Knowing who holds this role determines your compliance obligations on any jobsite.

PHMSA (Pipeline and Hazardous Materials Safety Administration)

Compliance

A U.S. federal agency that sets safety regulations for pipeline operations and hazardous materials transport. Subcontractors working on pipeline projects or hauling dangerous goods must meet PHMSA compliance standards. Non-compliance can result in fines, work stoppages, or contract termination.

Local Content

Compliance

A requirement that a set percentage of workers, materials, or services come from the local region or country. Subcontractors must often prove local hiring and sourcing to help clients meet these obligations. Non-compliance can disqualify your bid or void a contract.

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