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Compliance Glossary Term

LOTO (Lockout/tagout)

A mandatory safety procedure requiring subcontractors to physically lock and label energy sources before servicing equipment. It prevents accidental startup during maintenance work. Site operators often require proof of worker LOTO certification before mobilisation.

Related Terms

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.

Discovery Window

Compliance

The limited timeframe in which a subcontractor can identify and formally report hidden site conditions that differ from the original contract scope. Missing this window typically voids your right to claim additional compensation or schedule relief. Review your contract carefully — discovery windows can be as short as 24 to 72 hours after encountering the condition.

CIH (Certified Industrial Hygienist)

Compliance

A credentialed professional who assesses and controls workplace health hazards such as chemical exposure, noise, and air quality. Subcontractors may be required to retain or consult a CIH to meet site entry or regulatory requirements. Their sign-off can be mandatory before work begins in confined spaces or hazardous environments.

DBE (Disadvantaged Business Enterprise)

Compliance

A certification recognising businesses owned by minorities, women, or economically disadvantaged individuals. Prime contractors on federally funded projects often must subcontract a percentage of work to certified DBEs. Holding DBE status can open doors to set-aside contracts and preferred bidder programmes.

Sanctions Compliance

Compliance

The process of ensuring your company does not do business with individuals, entities, or countries under government-imposed trade restrictions. Subcontractors must screen clients, vendors, and partners against sanctions lists before signing contracts. Non-compliance can result in heavy fines, contract termination, or criminal liability.

Corrective Action Plan

Compliance

A formal document a subcontractor submits after a safety incident, audit failure, or contract non-compliance. It outlines specific steps, responsible parties, and deadlines to fix the identified problem. Clients or prime contractors often require approval before field work can resume.

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