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ComplianceGlossary Term

Industrial Carbon Tax

A federal levy charged to large industrial facilities based on their greenhouse gas emissions. As a subcontractor, your clients may pass these costs down through contract terms or fuel surcharges. Review your agreements closely to understand who bears this liability.

Related Terms

Asme Bpv (boiler and Pressure Vessel) Code

Compliance

A set of standards governing the design, fabrication, and inspection of pressure vessels and boilers. Subcontractors working on pressure equipment must ensure their work meets applicable ASME BPV sections or risk failing inspection. Non-compliance can result in project shutdowns, liability exposure, and lost contracts.

Pre-Qualification

Compliance

A vetting process where operators assess a subcontractor's safety record, insurance, and certifications before awarding work. Companies must meet minimum standards to be added to an approved vendor list. Failing pre-qualification means being locked out of bidding opportunities entirely.

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.

IEEPA (International Emergency Economic Powers Act)

Compliance

A U.S. federal law that grants the president broad authority to regulate or block international trade and financial transactions during a declared national emergency, which can directly affect subcontractors by triggering sudden tariffs on imported equipment and materials, disrupting cross-border project timelines, or restricting payments to and from American clients and primes. Field service companies working on U.S.-linked contracts or sourcing materials from affected countries should monitor IEEPA-related executive orders closely, as cost structures and contract terms can shift with little notice.

API (American Petroleum Institute)

Compliance

The leading industry organisation that develops technical standards, safety protocols, and equipment specifications that subcontractors must follow when working on oil and gas projects. API certifications and compliance with API standards are often mandatory requirements in service contracts and can affect your ability to bid on projects.

RT (Radiographic Testing)

Compliance

A non-destructive inspection method using X-rays or gamma rays to detect internal flaws in welds and pipework. Subcontractors must ensure certified RT technicians and proper radiation safety protocols are in place. Clients often require RT sign-off before authorising pressure testing or commissioning work.

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