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ComplianceGlossary Term

Lockout/tagout

A mandatory safety procedure requiring workers to isolate and de-energise equipment before servicing or maintenance begins. Subcontractors must follow the site owner's LOTO programme and hold current training documentation. Non-compliance can result in removal from site and contract termination.

Related Terms

Situational Awareness

Compliance

A worker's real-time understanding of hazards, personnel, and conditions on a job site. For subcontractors, it means knowing who is working nearby, what equipment is active, and how conditions are changing. Strong situational awareness reduces incidents and keeps crews aligned with the prime contractor's safety expectations.

Shoring

Compliance

Temporary support structures used to stabilise trenches, excavations, or buildings during construction or repair work. Subcontractors are often required to install shoring before crews can safely enter a dig site. Proper shoring is a regulated safety requirement and failure to comply can result in work stoppages or liability.

MI (Mechanical Integrity)

Compliance

A regulatory and operational standard confirming that pressure-containing equipment is fit for service and free from defects. Subcontractors working on vessels, pipelines, or wellheads must often meet MI requirements before commencing work. Non-compliance can halt operations and trigger liability for field service crews.

RIGI (Régimen De Incentivo Para Grandes Inversiones)

Compliance

Argentina's large-investment incentive regime offering tax, customs, and currency stability benefits to qualifying mega-projects over USD $200 million. Subcontractors working under RIGI-registered operators may benefit from faster payment cycles and reduced import duties on equipment. Understanding RIGI status helps field service companies anticipate project timelines and negotiate contract terms.

MOC (Management of Change)

Compliance

A 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.

Prequalification

Compliance

A vetting process where operators assess a subcontractor's safety record, insurance, and certifications before awarding work. Companies must pass prequalification to be added to an approved vendor list. Failing or lapsing can disqualify a subcontractor from bidding on projects entirely.

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