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Compliance Glossary 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

Indigenous Procurement

Compliance

A requirement by project owners to source goods and services from Indigenous-owned businesses. Subcontractors on major oil & gas or construction projects may need to meet minimum Indigenous spend targets. This can affect how you select suppliers, vendors, and labour providers on site.

Hazard Orientation

Compliance

A mandatory site-specific safety briefing required before subcontractor crews begin work on a new location. It covers site-specific risks, emergency procedures, and restricted zones. Primes or operators typically deliver it, and subcontractors must document attendance for compliance.

Worker Misclassification

Compliance

Occurs when a subcontractor or field worker is incorrectly classified as an independent contractor instead of an employee. This exposes hiring companies to back-taxes, penalties, and liability for unpaid benefits. CRA audits in oil and gas and construction regularly target this issue.

Comparative Negligence

Compliance

A legal principle that assigns fault percentages to each party involved in an incident or loss. If a subcontractor is found partially at fault, their compensation can be reduced by their share of blame. Understanding this protects subcontractors from absorbing disproportionate liability on shared job sites.

Absolute Liability

Compliance

Legal responsibility for damages or injuries regardless of fault or negligence. Subcontractors can be held liable even if they followed all safety protocols. Common in environmental incidents and hazardous operations on job sites.

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.

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