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ComplianceGlossary Term

LFI (Learning From Incidents)

A formal process where incident findings are shared across crews and job sites to prevent repeat occurrences. Subcontractors are often required by operators to distribute LFIs to their workforce and document acknowledgement. Failure to action LFIs can affect your standing on approved vendor lists.

Related Terms

Protest (customs)

Compliance

A formal dispute filed against a customs ruling, such as import duties charged on tools or equipment crossing the border. Subcontractors use protests to recover overbilled duties on temporarily imported gear. Filing deadlines are strict, so act quickly after receiving a customs decision.

Flaring

Compliance

The controlled burning of excess natural gas at a wellsite or facility. Subcontractors working on-site must follow strict flaring protocols, as ignition hazards affect work permits and safety zones. Flaring activity can also trigger regulatory hold points that delay field operations.

Fitness-For-Service (ffs)

Compliance

A formal engineering assessment that determines whether aging or damaged equipment is safe to keep operating. Subcontractors may be required to conduct or document FFS evaluations before resuming work on pressure vessels, pipelines, or structural components. Results directly affect your scope of work, liability exposure, and project timelines.

Export Authorization

Compliance

A government-issued permit allowing equipment, technology, or services to be delivered across international borders. Subcontractors must secure this before mobilising tools or personnel to foreign project sites. Missing authorisation can halt operations and trigger costly delays.

Punitive Damages

Compliance

Court-ordered payments that go beyond compensating actual losses, intended to punish serious misconduct. Subcontractors can face these for gross negligence or wilful safety violations. Many prime contracts include clauses limiting or waiving punitive damage liability.

Competent Person

Compliance

A worker recognised by a client or regulator as having the training, experience, and authority to identify hazards and direct safe work. Subcontractors are often required to designate a Competent Person on-site before work begins. Failing to do so can result in work stoppages or lost contracts.

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