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ComplianceGlossary Term

Local Content

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.

Related Terms

Davis-Bacon Act

Compliance

A U.S. federal law requiring subcontractors on government-funded construction projects to pay workers prevailing local wages. Rates are set by the Department of Labour and vary by trade and region. Non-compliance can result in contract termination and debarment from future federal work.

Lead Service Line Replacement

Compliance

A regulated programme to remove and replace lead water pipes connecting mains to buildings. Subcontractors are often mobilised under municipal contracts to perform excavation, pipe removal, and restoration work. Compliance with environmental and safety regulations is mandatory throughout.

Safety-Sensitive

Compliance

A designation for positions where impairment could directly cause injury, death, or environmental harm. Common examples include equipment operators, riggers, and drivers. Workers in these roles are typically subject to mandatory drug and alcohol testing under client and regulatory requirements.

Recordable Injury

Compliance

A work-related injury or illness that requires more than basic first aid, such as medical treatment, restricted duty, or lost time. Subcontractors must log these incidents and report them to the prime contractor. High recordable rates can disqualify your company from future bids or vendor pre-qualification lists.

LCRI (Lead and Copper Rule Improvements)

Compliance

A U.S. EPA regulation requiring water utilities to replace lead service lines within 10 years. Subcontractors performing pipe replacement or water system work must meet strict material and testing standards. Non-compliance can disqualify firms from municipal infrastructure contracts.

Hazardous Energy Isolation

Compliance

The process of controlling dangerous energy sources—electrical, hydraulic, pneumatic, or mechanical—before maintenance or repair work begins. Subcontractors must follow the site owner's lockout/tagout (LOTO) procedures or risk losing site access. Non-compliance can void your contract and trigger serious liability.

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