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Compliance Glossary Term

Lagging Indicators

Metrics that measure past performance, such as recordable injuries, lost-time incidents, or missed deadlines. Subcontractors use them to identify trends after the fact. They appear frequently in client scorecards and prequalification reviews.

Related Terms

Equivalency Agreement

Compliance

A formal arrangement where two jurisdictions recognise each other's safety training or certifications as mutually acceptable. For subcontractors, this means workers certified in one province or region can mobilise to another without repeating training. It reduces downtime and credentialing costs when moving crews across borders.

Indemnification

Compliance

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.

Stand Down (safety)

Compliance

A mandatory work stoppage ordered by a prime contractor or owner to address an immediate safety concern or incident. All subcontractor crews must halt operations until the issue is resolved and a formal all-clear is issued. Stand downs can be site-wide or scoped to a specific trade or work area.

Pre-Task Plan

Compliance

A written safety review completed by crew members before starting a job task on site. It identifies hazards, required controls, and who is responsible for each step. Subcontractors are often required to submit these to the prime contractor before work begins.

Nfpa 70e (national Fire Protection Association 70e Standard for Electrical Safety in the Workplace)

Compliance

A U.S. standard governing electrical safety practices, PPE requirements, and arc flash hazard protocols on job sites. Subcontractors working on energised electrical systems must comply to meet site access and insurance requirements. Canadian contractors often encounter it on cross-border projects or with American general contractors.

EMR (Experience Modification Rate)

Compliance

A numerical score calculated by insurers that compares your company's workplace injury claims to industry averages. A score below 1.0 indicates a safer-than-average record; above 1.0 signals higher risk. Many prime contractors and operators require subcontractors to maintain a low EMR to qualify for bid lists.

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