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.
Indemnity Provision
Related Terms
Acclimatization
ComplianceThe 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
ComplianceAn 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)
ComplianceA 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
ComplianceThe 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)
ComplianceA 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
ComplianceA 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.
Latest Compliance News
Oshawa GO Station Expansion Breaks Ground, Adding Track and Platform Packages
Construction has started on a major expansion of Durham College Oshawa GO Station, adding two tracks, new platforms, and pedestrian bridges to support two-way, all-day GO service, Daily Commercial News reports.
2 days agoComplianceNIOSH Releases Toolbox Talk on Overhead Power Line Hazards
NIOSH and CPWR published a new toolbox talk urging crane, lift and ladder crews to keep 20 feet of clearance from overhead power lines after a fatal crane incident on a school jobsite.
7 days agoComplianceCSB Report: Longview Tank Was Flagged "Not Fit for Service" 10 Months Before Fatal Failure
The U.S. Chemical Safety Board found that an inspection report warned Nippon Dynawave that a storage tank at its Longview, WA mill was unfit for continued service months before it failed, killing 11 workers.
9 days agoComplianceCSB Update: Fatal H2S Release at WV Refiner Tied to Missing Decommissioning Procedures
The U.S. Chemical Safety Board's ongoing probe into a fatal April 2026 hydrogen sulfide release at Catalyst Refiners in Institute, West Virginia, found workers lacked gas monitors and proper respirator filters during decommissioning work.
9 days agoRelated Guides
When a Jobsite Incident Happens: What Field Workers Need to Know Before Signing Anything
What to do after a jobsite injury or incident, what your rights are before signing incident reports, how workers' compensation works, and how to protect yourself on multi-employer worksites.
Compliance GuideOSHA Citations on Multi-Employer Worksites: What Subcontractors Need to Know
Learn how OSHA's multi-employer citation policy works, why subcontractors get cited for hazards they didn't create, and how to protect your company on operator-controlled job sites.
Compliance GuideHow to Read and Negotiate an Oilfield Master Service Agreement (MSA): A Subcontractor's Guide
Learn which MSA clauses actually matter for oilfield subcontractors: indemnity, insurance, payment terms, and change orders. Know what you're signing.
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